While it was stated that the new agreement includes updated terms and revenue sharing arrangements, it was stated that the parties mutually settled their past debts.
This development is also important for the Turkish business world due to the ownership structure of CMA CGM. CMA CGM Group, one of the world's largest container transportation companies, is 24 percent owned by Yıldırım Holding, with Robert Yüksel Yıldırım as President and CEO.
Revenue Sharing and Contract Duration Updated in New Agreement
In a statement released by the Syrian port authority, it was emphasized that the new contract includes updated terms, but no details were shared. However, a Syrian source close to the negotiations told Reuters that revenue distribution, contract duration and technical improvements were discussed in the lead-up to the new contract.
The source said that the Syrian authorities demanded a larger revenue share compared to the previous contract, a shorter lease term and improvements to the infrastructure. These technical improvements include the addition of a new ship deck.
Latakia Port, Syria's Main Trade Gateway
Latakia Port is Syria's most important maritime trade gateway. CMA CGM has been operating the terminal since 2009 and its contract has been renewed on various dates. Most recently, it was extended for another 30 years in October 2024 by the then Syrian leader Bashar al-Assad administration. It remains unclear what kind of a road map the new management, led by Ahmed al-Shara, will draw for the future of the port.
Yıldırım Holding also holds shares in CMA CGM
CMA CGM is run by French-Lebanese billionaire Rodolphe Saade and his family. However, Yıldırım Holding is also among the company's shareholders.
In 2011, Robert Yüksel Yıldırım invested 500 million dollars in the company and bought 20 percent convertible bonds when CMA CGM had difficulty in paying its debts of more than 5 billion dollars. In 2013, he invested another 100 million dollars and bought 4 percent additional shares.
According to the agreement at the time, Yıldırım Holding was planning to sell the shares back to the Saade family within two years, but the process went differently. Yüksel Yıldırım is still a member of the board of directors of CMA CGM.
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