Syria is continuing to win reinvestment in its logistics sector, with DP World set to pump some $800m into developing the port of Tartus.
State news agency Sana said the new government had signed a memorandum of understanding with the terminal operator in the wake of the US pledge to lift the vast sanctions regime imposed in the wake of 2012’s civil war.
The agency said the agreement “includes a comprehensive investment in the development, management, and operation of a multi-purpose terminal at Tartus Port”.
It added: “The two sides also agreed to cooperate in establishing industrial zones and free zones, in addition to dry ports and freight transit stations in a number of strategic areas – all of which reflects both parties’ commitment to supporting economic development and facilitating trade and transport.”
DP World has yet to comment on the agreement, which marks Syria’s first major deal since new president Ahmad Al Shara met his US counterpart, Donald Trump, in Saudi Arabia this week.
Nor is it surprising to see DP World move in this manner, as the Dubai state-owned operator expressed plans this year to expand its network in new locations, “despite global uncertainties”.
Filipino terminal operator ICTSI gave up its lease on the Tartus container terminal in 2013 amid intensification of the civil war and imposition of western sanctions, the Russian navy taking control of the port’s operations.
That agreement between then president Bashir Al-Assad and the Russians was swiftly torn up by the new Syrian government, which says it is keen on prompting private investment into the country.
The news of the DP World deal comes less than a fortnight after the new government renegotiated CMA Terminals’ contract to operate Syria’s main gateway, Latakia.
That deal includes a €230m ($261m) investment: €30m for infrastructure and superstructure in this first year; the remaining €200m to be injected by 2029.
CMA Terminals won the concession with a major extension. It will run for 30 years, following the 10-year, reducing to five-year, deal it had with the Assad government.
The agreement also revises the revenue split between the terminal operator and the Syrian government, the latter taking 60% and CMA 40%.
