ECONOMY

European bank to loan over $30M to Turkish firm

EUROPEAN BANK TO LOAN OVER $30M TO TURKISH FIRM

The European Bank for Reconstruction and Development (EBRD) will loan 27.5 million euros (around $31.6 million) to a Turkish sea transportation firm for the acquisition of a new cargo ship, according to the bank on Thursday.

The European bank said the loan provided to Alternative Transport would help the firm realize its international potential.

"Alternative Transport is investing in a new 55.5 million euros (around $63.8 million) vessel with a capacity of 283 trailers to carry wheeled cargo such as cars, trucks, trailers or railroad cars that are driven on and off the vessel," the bank said in a statement.

"In addition, a 4.5-million euro (some $5.2 million) junior loan will be provided under the EBRD's green logistics program, which is funded by the global environment facility. Turkey's largest lender Isbank is extending a parallel loan of 16 million euros (around $18.4 million)."

The new cargo ship will facilitate the firm's expansion on the route connecting the Istanbul port of Haydarpasa and the northeastern Italian port city of Trieste, increasing profitability and operating efficiency, according to the bank.

The bank reminded that shipping via sea is the leading mode of transport for Turkish international trade, both by value and volume.

"Over 60 percent of imports and 55 percent of exports, by value, are seaborne. Backed by Turkey's strong trade relationship with Europe, the sector is continuing to grow rapidly," it added.

Alternative Transport was established in 2013 as an integrated logistics company that provides international freight, warehousing, domestic distribution, foreign trade, customs and supply chain management services in 15 countries.

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