STATE GENERAL RESERVE FUND TO RETAIN ITS STAKE IN THE LEADING TURKISH PORT OF KUMPORT
Oman’s State General Reserve Fund (SGRF), the main sovereign wealth fund of the Sultanate of Oman, retains its 35% stake in the Turkish container port of Kumport. SGRF confirms this decision in the context of the majority shareholder, FIBA Holding, announcing its decision to sell its 65% stake to a consortium comprising of China Merchants Holdings (International) Company Limited (CMHI), COSCO Pacific Limited (COSCO Pacific) CIC Capital Corporation (CIC Capital).
Kumport is the third largest container terminal in Turkey and is located to the north west of the Marmara Sea, on the European side of Istanbul. It is an important strategic location at the junction of Europe and Asia. The terminal is only 35 km away from the Bosphorus Strait, the only gateway to the Black Sea region. The 6-berth terminal currently has a shoreline of 2,180 metres and maximum depth of 16.5 metres, capable of accommodating the world’s largest container vessels currently in service. The container handling capacity of the terminal stands at 1.8 million TEU and could potentially be expanded to 3.5 million TEU. In 2014, Kumport handled a total container throughput of 1.4 million TEU, accounting for 17% of Turkey’s total, with compound annual growth rate exceeding 30% between 2009 and 2014.
The fund has achieved significant returns through this investment and the value of the business has more than doubled since the time of SGRF’s original investment in 2011. As a long-term investor, SGRF has a strategic focus on ports and logistics as one of its key themes for direct investments, and the investment in Kumport is an important one in that context.
CMHI's participation in the consortium represents the second collaboration between SGRF and CMHI after the announcement of their strategic partnership involving the development of a port and special economic zone at Bagamoyo in Tanzania in October 2014.
Commenting on this occasion, His Excellency Abdulsalam Al Murshidi, the Executive President of SGRF, stated: “Our partnership in this venture has been very positive and Kumport has become a very successful port in Turkey which generates strong financial returns. With FIBA now exiting, the company is entering into a new exciting phase. The new partnership with CMHI and COSCO Pacific with their international portfolio of port terminals in light of their respective experience in investing, managing and operating overseas port operations as well as their respective relationships with liners, will add further value to Kumport’s operations. This will strengthen its position and make Kumport a key location on the 21st Century Maritime Silk “One Belt One Road” initiative rolled out by the Chinese Government. With the values and expertise of our new partners, supporting the excellent management team that Kumport already has, we are very confident that the company is poised to proceed successfully through its next phase of growth.”