YILPORT Holding is renegotiating its Taranto Port concession as infrastructure issues hinder container handling volumes.
The concession agreement regarding the container terminal operations at Taranto Port in Italy, managed by Turkish port operator YILPORT Holding, is being renegotiated. The Italian port authority announced that it will make a counteroffer in response to the company's proposed contract amendment within 10 to 15 days.
The concession negotiations between Turkish port operator YILPORT Holding and the Ionian Sea Port System Authority (AdSP) have entered a new phase at Taranto Port, located in southern Italy.
According to reports from Italian maritime publications Shipping Italy, Ports Europe, and Splash247, YILPORT has submitted an official proposal to the port authority to restructure the existing concession terms for the San Cataldo Container Terminal.
Giovanni Gugliotti, President of the Ionian Sea Port System Authority, confirmed that the proposal has been received and stated that they will prepare a counteroffer within 10 to 15 days.
Discussion of the 49-year concession agreement
YILPORT acquired the operating rights for the San Cataldo Container Terminal at Taranto Port for a period of 49 years in 2019.
However, during the past seven years, the terminal's container handling volume has remained below the targets set forth in the concession agreement.
The port authority has initiated efforts to collect a €3 million guarantee from YILPORT due to the failure to meet traffic targets.
While the possibility of revoking the concession has been raised in the Italian press, recent statements indicate that the parties are primarily renegotiating the terms of the contract.
YILPORT: Infrastructure deficiencies at the port must be addressed
YILPORT argues that significant deficiencies in the port's infrastructure have played a crucial role in the terminal's inability to achieve the expected performance.
It is noted that the company is particularly requesting the completion of dredging works necessary for large container ships to dock at the port.
The dredging works, which have been on the agenda for nearly 20 years, aim to increase the water depth at the port to 16.5 meters.
The port authority is working with Italy's Ministries of Infrastructure and Environment to overcome the technical and environmental obstacles to the dredging works.
A portion of the port will be allocated for offshore wind energy
Another development affecting the discussions at Taranto Port is the Italian government's plan to make the port one of the significant production and logistics centers for the offshore wind energy sector.
The government has designated Taranto and Augusta ports as national centers in this field.
The planning for new energy investments to utilize certain areas within YILPORT's existing concession site has brought the reorganization of the port area into consideration.
In this context, how the operational areas of the container terminal will be shared with the regions allocated for energy investments is also one of the important topics of negotiation.
€28 million for dock reinforcement
Giovanni Gugliotti, President of the Ionian Sea Port System Authority, announced that the €28 million allocated for the reinforcement of the multipurpose dock at Taranto Port has been preserved.
Accordingly, it is projected that €13 million of the investment will be used in 2026, while the remaining €15 million will be utilized in 2027.
The port authority aims to enhance Taranto's competitiveness in Mediterranean container shipping through these infrastructure investments and the restructuring of concession terms.
All eyes on the port authority's counteroffer
Following YILPORT's proposed amendment, negotiations between the parties are expected to enter a new phase within the next two weeks.
The counteroffer prepared by the port authority will be significant in determining the future operating conditions of the terminal and the use of the port area.
Currently, there is no verified statement regarding the cancellation of YILPORT's concession or the company's decision to withdraw from Taranto Port. The process continues as negotiations for the restructuring of the existing concession agreement.
Source: SeaNews Türkiye
