The European Bank for Reconstruction and Development has provided a $19.5 million loan to fund the development of a new floating dock in Turkey.
The facility, being built by local company Tersan Shipyard, will be based in Yalova, a city on the eastern coast of the Marmara Sea. The third such dock in the region, it will cater to larger vessels – upgrading ships so they can run on liquefied natural gas and installing ballast water treatment technology. Tersan’s new dock will be the fourth-largest in Turkey once completed.
While the EBRD’s contribution covers 65 percent of the project’s total $30 million cost, the EBRD’s original proposal considered committing up to $21 million. It said the project will demonstrate the wider availability of financing on a long-term basis to the ship repair and maintenance industry in Turkey.
The country’s shipping industry has recently seen significant growth, with $2.8 billion invested over the past 15 years.
“Tersan’s new floating dock, geographically located near the Marmara Sea, a very high-traffic area for container and other types of vessels, will provide flexible and reliable repair services for both Turkish and European vessels,” said Sue Barrett, EBRD director for transport. “As Turkey is expanding its trade with Europe and industries are looking for competitive ship building and maintenance services, the new dock, a best in class, will bring a tailwind to the promising Turkish shipping industry.”
The EBRD continues to direct funds towards Turkey despite the uncertainty surrounding the region. The bank invested €1.9 billion in the country in both 2016 and 2015, building on the €1.4 billion committed in 2014.