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Photo: DP World
DP World has confirmed its entrance into the Syrian market, yesterday signing a 30-year concession agreement with the country’s General Authority for Land and Sea Ports to develop and operate the port of Tartus, and promising to invest some $800m into the gateway.
The Dubai-headquartered terminal and logistics operator said the funds would be ploughed into “new infrastructure, advanced cargo-handling equipment, and digital systems” over the course of the concession, which is structured on a build-operate-transfer (BOT) agreement.
Sultan Ahmed bin Sulayem, chairman and group CEO of DP World said: “We see strong potential in Tartus as a vital trade gateway and look forward to strengthening regional connectivity and economic opportunity through this investment. We believe in the power of trade to help drive long-term stability and prosperity for Syria and the region.”
The Loadstar reported in mid-June that DP World and the new Syrian government had signed a memorandum of understanding to also potentially establish “industrial zones and free zones, in addition to dry ports and freight transit stations, in a number of strategic areas”, alongside the Tartus investment.
Yesterday’s deal marks the return of an international terminal operator to Tartus, which was operated by Filipino firm ICTSI until mid-2013, when the escalating civil war and imposition of sanctions on the Bashir Al-Assad regime forced it to relinquish its lease.
Russia’s navy subsequently assumed control of Tartus, but was recently forced out after the downfall of Assad, with the new government keen on prompting private investment into the country.
“This agreement marks an important step forward for the port of Tartus and Syria’s maritime sector,” said authority chairman Qutaiba Ahmed Badawi.
“Partnering with DP World will allow us to modernise and strengthen the efficiency of our trade infrastructure as we continue to rebuild key tradelanes, support the national economy, and provide more opportunities for the Syrian people.
“The agreement reflects our shared vision to transform Tartus into a strategic gateway linking Syria with regional and international markets, and it will pave the way for sustainable growth for years to come,” he added.
According to the eeSea liner database, Tartus hosts two liner services – CMA CGM’s intra-Mediterranean BMS, which deploys six 2,300 teu vessels between Central Med, Adriatic, and eastern Med ports; and MSC’s Hellenic service connecting Greece, Egypt, Turkey, Lebanon, and Syria with four 1,000 teu ships.
The new agreement follows CMA CGM’s recent contract renewal to operate the country’s largest terminal, at Latakia.
CMA Terminals guaranteed a €230m investment into the port – €30m for infrastructure and superstructure in the first year, the remaining €200m to be injected by 2029 – in return for a 30-year operating concession, which will see revenues in the facility shared 60:40 with the Syrian government.
According to eeSea, the same two services calling at Tartus also call at Latakia.
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