Türkiye's Yilport To Invest $1.6 Billion In Expanding El Salvador Ports
Yilport, a Turkish holding company, plans to invest approximately $1.62 billion to expand and jointly operate two ports in El Salvador with the local port authority, as announced by the Central American country's government.
Salvadoran President Nayib Bukele revealed that this investment aligns with his broader economic revitalisation strategy. Yilport, which manages ports in Guatemala, Ecuador, Peru, and Europe, aims to triple the capacity of Acajutla, El Salvador's largest port, according to Reuters report.
The company will also overhaul La Union, a port in eastern El Salvador that has remained closed since its construction was completed in 2008. According to Bukele's post, dredging work is necessary before the port can accommodate larger and heavier ships.
Yilport and El Salvador's Autonomous Port Executive Commission (CEPA) will jointly manage these ports under a 50-year concession for each. This partnership will form what is known as a "mixed-economy corporation," which is not restricted by the legal limit on joint concessions.
Official data indicates that Acajutla has handled over 3.1 million metric tonnes of cargo so far this year. This expansion project is expected to significantly boost its capacity and efficiency.
Earlier this year, Yilport had announced a "pre-agreement" to hold concessions for both ports for 100 years. However, Salvadoran law only permits joint concessions for up to 40 years. The new agreement circumvents this limitation through the mixed-economy corporation structure.
This substantial investment by Yilport is part of President Bukele's broader plan to revitalise El Salvador's economy. By enhancing port infrastructure and operations, the country aims to improve its trade capabilities and attract more international business.
The collaboration between Yilport and CEPA underlines a significant step towards modernising El Salvador's port facilities. The improvements at Acajutla and La Union are anticipated to bolster the nation's economic growth and global trade presence.
The dredging work at La Union is crucial for enabling larger vessels to dock, which will enhance the port's operational capacity once it reopens. This development marks an important milestone in El Salvador's efforts to upgrade its maritime infrastructure.
The investment from Yilport highlights the strategic importance of El Salvador’s ports in regional trade networks. With enhanced facilities, these ports are expected to play a pivotal role in boosting economic activities in Central America.
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