Derince port tender relaunched

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Derince port tender relaunched

A tender process to concession the Derince Port for 39 years in the Turkish northwestern province of ?zmit has been relaunched on 18 April 2014. After several failures, the concession period has been extended to increase the potential profitability of the project.

The first tender for the transfer of operating rights of Derince Port was held in 2007, in which Türkerler Joint Venture Group was the highest bidder with US$195.25 million. However, the Council of State cancelled that tender, citing contradiction in the land settlement plan of the area.

The privatization process restarted in October 2013, with Privatization Administration's announcement of receiving offers but the tender process was canceled on 22 January 2014 after bidders failed to meet the price that had been requested by the tender committee.

The six companies that submitted bids in the tender process were: British shipping and logistics firm The Peninsular and Oriental Steam Navigation Company, and units of local Yildirim Group, Safi Holding, Fiba Group, Cengiz Holding, as well as local logistics firm Ceynak Lojistik ve Ticaret.

Derince Port is owned by The General Directorate of the Turkish State Railways Administration (TCDD).  TCDD Operation General Directorate plans to privatize the port with 39 years of transferring of operation right method. The tender will be held by Head of Privatization Administration of Prime Minister.

Interested parties must submit their proposals on or before 28 May 2014. Investment funds may only participate in the tender within the corporate body of Joint Venture Group.

Derince is a seaport, town and district of Kocaeli Province of Turkey. It is one of the few ports with railway connection in that area, and has the longest rail network within the port. Having one of the biggest storage area in the region, port is widely used for finished vehicle transportation.

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