Turkey suffers competitiveness deficit in logistics
The results of the World Bank’s Global Logistics Performance Index’s 2018 were released last week. According to the bi-annual index, Turkey declined by 13 ranks this year, landing in 47th place. Turkey, which ranked 30th in 2007 when the Logistics Performance Index was launched for the first time, declined to 39th in 2010 but managed to increase its rank to 27th in 2012, especially with improvements in customs procedures. Since 2014, Turkey has been experiencing a steady decline in the index.
“The drop in logistics performance means that logistics costs, and therefore production costs, are increasing in our country,” Cetin Nuhoglu, Chairman of the International Transport Association (UND), who assessed the fall in the Global Logistics Performance Index, said. “Inflation is negatively affected in the domestic market and the international competitiveness of Turkish products is weakening.
“The decline that began with the 2014 index continues as of 2018. The most important factors that downgrade Turkey’s logistics performance are the unfair and prohibitive restrictions imposed on Turkish transporters abroad and price increasing implementations. Waiting at border gates, the number of documents required in foreign trade transactions and the excess of fees, heavy bureaucracy and coordination problems among institutions are other important issues that hold us back in logistics performance.”
Referring to the performance of the country on customs procedures, Cetin Nuhoglu said the performance decline under the customs operations section of the index is at concerning levels. “Applications that complicate trade and customs procedures, increased border crossings due to coordination problems among public institutions and customs bureaucracy are priority customs problems to overcome,” he said. “It is a great opportunity for us now that the Customs and Foreign Trade Bureaucracy has been centralized within the Ministry of Commerce. We believe that, along with the Presidential government model, the Ministry of Commerce will take steps to increase our logistics performance and the speed of our foreign trade. We are ready to give all kinds of support in this regard.”
Turkey should be n top 20
“The solution of logistical problems is important, but the determination of a vision and working towards the targets within the scope of this vision will help us succeed,” Nuhoglu said. “We have to get a logistics-friendly country status. Our goal should be to be among the first 20 in the Index. Action plans that will overcome the problems in logis- tics were determined at the Facilitation of Commerce Council. We are confident that we will establish a new vision with the Presidential government model, especially our Ministry of Commerce, and that we will experience a significant rise in the short term in the Logistics Performance Index.”
Ranked 53rd n compet t ve pr ce
The Global Logistics Performance Index evaluates countries according to 6 criteria. Turkey ranked 58th in “Customs Procedures”, 53rd in “Competitive Prices”, 52nd in “Logistic Qualification”, 44th in “Delivery on Time”, 33rd in “Infrastructure” and 42nd in “Monitoring and Tracking”. The biggest drop came in “Customs Procedures”, where Turkey moved 22 steps down followed by “Competitive Prices” at 18 and “Logistics Qualification” at 15.