Final day to receive bids for Galataport privatization

ISTANBUL- Hürriyet Daily News

The Istanbul Salıpazarı Port, known as Galataport, which is located in Karaköy and owned by Turkey’s Maritime Organization, will be privatized. Hürriyet photo

The deadline to submit bids for the privatization of the Istanbul Salıpazarı Port Area, commonly known as Galataport, ends today, April 30.

“We need to grow faster. We say we want mad projects but we are hitting our heads against a brick wall… Galataport and Haydarpaşaport projects are being prepared,” Recep Tayyip Erdoğan, Turkey’s PM said yesterday.

The Port will be privatized for 30 years through the method of “Grant of Operation Right” within the scope of the provisions of the Law numbered 4046. The tender will be realized by the bargaining method. If the Tender Commission finds necessary, the tender process may be finalized through a public auction with the participation of the bidders with whom the bargaining negotiations are still underway. Many big Turkish and foreign conglomerates and funds are expected to show interest to participate in the bargaining, from Akfen to Limak and İÇ Holding. Global Investment Holding, which was one of the partners of the consortium which won the previously cancelled Galataport in 2005, has collected its tender specifications this time as well.

The Turkish Privatization Authority attempted to lease the region for 49 years in 2005, and a consortium, which was embodied by renowned (now deceased) Israeli businessman Sami Ofer and his Turkish partner Mehmet Kutman, won it after outbidding their competitors with $4.3 billion. But this auction was later nullified by the Turkish Maritime Organization (TDI), stating certain conditions had not been met. The time period of the operation right is limited from 49 years to 30 years.

The Port is located in Karaköy, one of the oldest port districts of Istanbul. The Istanbul Salıpazarı Port Area, which is originally owned by Turkey’s Maritime Organization (TDI), has up to 1,200 meters of coastline and covers an area of approximately 100,000 square meters. The Port is one of the top 10 ports in Europe in terms of the number of passengers, at 600,000 passengers annually. The current Port and its neighboring area are expected to be improved after the privatization. Construction has already been underway for the last two years on many new hotels in the area, due to high expectations about the Galataport project.

The new tender has been the subject of new judicial cases as architects, urban planners and contractors’ chambers filed a lawsuit against the project after its details were announced to the public.