Since 1971, the port of Tartus in Syria, which has been the sole base of the Soviet Union and later Russia in the Mediterranean, will be significantly impacted by a Turkish company. The Turkish company Kuzey Star will establish a giant shipyard at the port, which was previously operated by a Russian company. With this investment, a first in the maritime sector will occur in Syria in the post-Assad era.

A Turkish touch to the famous Tartus, the only Russian base in the Mediterranean. The port, where Russian dominance has ended with the overthrow of Bashar al-Assad, will be operated by a Turkish company. The Syrian state has signed an agreement with the Istanbul-based maritime company Kuzey Star, which is well-known to both Turkey and Russia, for the operation of Tartus Port.

The General Directorate of Syrian Ports and Customs has signed a strategic investment agreement with Turkey's Kuzey Star Shipyard to begin shipbuilding at international standards in Syria. This step marks a first in the Syrian maritime sector.

WITH A BUILD-OPERATE-TRANSFER MODEL

The agreement, signed by Kuteiba Ahmed Badavi, the General Director of Syrian Ports and Customs, and the executives of the Turkish company, envisions the construction of a fully integrated shipyard at Tartus Port using a build-operate-transfer (BOT) model. The Turkish firm will construct, equip, operate, and manage the facility, which will enable advanced shipbuilding, repair, and maintenance operations.

30 YEARS OF OPERATION, 190 MILLION DOLLARS INVESTMENT

According to the contract, the investment will last for 30 years, and Kuzey Star will invest at least 190 million dollars, equivalent to 8.2 billion lira at today’s exchange rate, in the first 5 years for the development of docks, warehouses, and operational infrastructure. The agreement does not impose any financial obligations on the Syrian side.

The agreement also provides a 20% discount on shipbuilding and repair services for vessels owned by the Syrian government, while requiring the company to create 1,700 direct and 3,500 indirect job opportunities, with at least 95% of the workforce being Syrian. The agreement also mandates training and technology transfer. This project will strengthen Syria's port infrastructure, turn Tartus into a regional maritime center, and create new opportunities for investment and economic growth.

THE RUSSIAN COMPANY'S AGREEMENT WAS TERMINATED

Last January, an agreement with a Russian company for Tartus Port was canceled. In 2019, under the decision of the ousted president Bashar al-Assad, the Russian company Stroytransgaz and the Katerji Group, close to the former regime, began operating the port. However, when the management changed, this process was shelved. All resources of the port were returned to the Syrian treasury.

ESTABLISHED DURING THE SOVIET ERA

As is known, the Russian Naval Base at Tartus Port was established in 1971 through an agreement between the Soviet Union and Syria. The base is Russia's only base in the Mediterranean and is officially classified as a naval supply and maintenance facility.

HAD WON THE TENDER FOR ICEBREAKERS

The Tartus base can accommodate four medium-sized vessels if both of the 100-meter floating docks inside the northern breakwater are operational.

The Turkish company Kuzey Yıldızı, which signed the agreement with the Syrian administration, is a well-known company in Russia. In 2021, the Turkish company signed an agreement with Rosmorport, the Federal Agency for Marine and Inland Waterway Transport under the Russian Ministry of Transport, for the construction of icebreakers known as 'Project 23620.'

COSTS INCREASED, PROJECT CANCELED

In the agreement, the cost of 18.5 billion rubles, or 232 million dollars, rose to 32 billion rubles, or 410 million dollars. As prices increased, the tender was canceled. Both icebreakers were to be completely constructed at the Turkish shipyard and delivered in 2024. However, Russia's invasion of Ukraine in 2022 negatively impacted both costs and timelines. The construction of two Icebreaker7 class icebreakers with capacities of 12 to 14 MW was extended by another 2 years.

FIRST SANCTIONS, NOW INVESTMENT

The Russian tender won by the Turkish company put Kuzey Star into the sanctions process. Due to a transaction linked to Russia, Kuzey Star was placed on the sanctions list by the U.S. Office of Foreign Assets Control (OFAC) in January of this year. On October 10, 2025, a new decision was made, and Kuzey Star Shipyard was removed from the sanctions list. Thus, the company that was previously sanctioned due to Russia is now in a position to invest in Syria.

Kerim Ülker / Patronlar Dünyası

Source: SeaNews Türkiye