El Salvador is back in the headlines as it embarks on a groundbreaking investment to modernize its port infrastructure, paving the way for its ambitious vision for Bitcoin City.
Yilport Holdings, a subsidiary owned by a Turkish company, invested a huge amount of 1.6 billion dollars for the renovation and modernization of two such ports: Acajutla and La Unión. This is without a doubt the largest private money ever poured into the country’s history, and as such is expected to generate further economic growth in the country.
El Salvador: Major investment in port development
The announcement was made via social media by President Nayib Bukele. He explained that an investment of over $1.615 billion will be made by Yilport Holdings in the modernization of the Pacific port in La Unión and the modernization of Acajutla. Currently, the port facilities in La Unión are very underutilized and almost no ships call at the seaport due to its aged infrastructure.
Economic Plan / Phase 3: Logistics
Economic Plan / Phase 3:
Logistics photo: twitter.com/2cmn8T3g5p— Nayib Bukele (@nayibbukele) August 12, 2024
The terms of the agreement would allow Yilport and the Autonomous Executive Port Commission (CEPA) to manage the ports for the next five decades. It is a long-term partnership that aims to revitalize the ports and improve logistics in the region.
For Federico Anliker, president of CEPA, this was an investment of great importance, as he stated that “El Salvador is becoming a very important logistics hub in Latin America”. According to him, it will strengthen the country’s position in world trade by modernizing its ports.
Work on the project will begin in slow 2024 and will be carried out in stages. This will allow the modernization of the facilities to proceed without disruption.
El Salvador has announced a historic $1.6 billion private investment by Yilport Holding. The investment will be used to modernize the port in Acajutla and build a modern port in La Unión, where Bitcoin City is planned. The investment is expected to be the largest in the country…
— Finest Kid (@finestKid255) August 12, 2024
Bitcoin City: A Vision of the Future
Investment in port infrastructure is part of a broader vision: the city of the future, Bitcoin Citywhat President Bukele announced in 2021. The city’s metropolis will have no taxes and will be managed by geothermal energy extracted specifically to earn Bitcoins from it.
Bitcoin market cap currently at $1.16 trillion. Chart: TradingView.com
The development of the port is part of the logistics and trade infrastructure that is intended to meet the needs of the city, thus ensuring its development and attracting more investment.
Residential areas, businesses, and recreational activities are expected to be copious in the metropolis. The project was originally supposed to be financed by cryptobonds, but it would confirm El Salvador’s commitment to embracing cryptocurrencies in its financial system.
The decision has sparked enthusiasm among cryptocurrency investors who hope that the country will be able to manage its economic growth using artistic means.
The $1.6 billion project will make El Salvador a transit and business hub. The port upgrade will support stretch the country’s coastline. The country’s partnership with a prominent Turkish company is expected to support the government create jobs and more.
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