Turkish holding company Yilport will invest an estimated $1.62 billion to expand two ports in El Salvador and operate them jointly with the local port authority, the government of the Central American country said.
Salvadoran President Nayib Bukele said the investment was part of his broader economic revitalization plan. Yilport, which also operates ports in Guatemala, Ecuador, Peru and in Europe, is set to invest to triple capacity at Acajutla, El Salvador's biggest port.
It will also invest to overhaul La Union, a port in the east of the country which has been closed since construction was finished in 2008. Dredging work is needed before the port can open, to allow larger, heavier ships to enter, according to Bukele's post. Yilport and El Salvador's Autonomous Port Executive Commission (CEPA) will jointly operate the two ports under a 50- year concession for each, according to Bukele.
Acajutla has moved more than 3.1 million metric tons of cargo so far this year, according to official data.
Earlier this year, Yilport announced a "pre-agreement" to hold concessions in the two ports for 100 years, though Salvadoran law only allows joint concessions for up to 40 years. The new agreement will establish what is known as a "mixed-economy corporation," which is not subject to the legal limit.