Turkey's Yilport to invest US$1.6bn in 2 El Salvador ports

The Salvadoran government announced that Turkish company Yilport Holding Inc. agreed to invest more than US$1.6bn to refurbish and operate two key ports in the country, Acajutla and La Unión. 

A video was published on President Nayib Bukele’s X account explaining that Yilport will form a mixed-ownership company with El Salvador's autonomous executive port commission (Cepa) to modernize and operate Acajutla and La Unión with "the largest private investment that the country has ever seen."

“We will modernize Acajutla seaport and finally activate La Unión seaport. This [latter] project had been neglected by previous administrations and has not operated since it was built over two decades ago,” it was stated in the video. 

This agreement was reportedly a result of Bukele's visit to Turkey in 2022. 

“This will be a mixed-ownership company between Yilport and the autonomous executive ports commission, which will operate both seaports for the next 50 years,” the video states. “The investment will be made in stages, starting at the end of this year.”

During the first stage, Acajutla port will be upgraded and equipped “to reduce waiting times” for shipping companies. This stage also includes dredging works at La Unión port, as well as buying new equipment like cranes, loaders and other machinery. 

The second stage will see the construction of new infrastructure to treble Acajutla’s capacity. The video did not give any details on the third and final stage, but said it “will generate new and better trade opportunities for El Salvador.”

According to statements from minister of economy María Luisa Hayem during a TV interview on Monday, both Yilport and Cepa will have “a voice and vote” in the new company.

“It will not be a concession per se, but a partnership, a mixed-economy company where both the government and the Turkish company will be handling the project,” she was quoted as saying by outlet Infobae. 

Yilport, part of the Yildirim group, started operations in 2004 and intends to become a top 10 global port operator by 2030. It is currently the 12th largest international container terminal operator, according to its website.