Germans to make Turkey a “logistics hub” according to 2030 master plan

Dünya Executive - - BUSINESS - AYSEL YUCEL

Ashift from West to East in the global trade routes, projects like China’s One Belt One Road initiative, increase foreign interest in Turkey. Germans, who want to get a bigger share in trade to the East, want to make Turkey a hub in logistics for uninterrup­ted connection to Turkic Republics and the far East. Attending the 24th Transporta­tion and Logistics Congress hosted by the Istanbul Chamber of Commerce (ICC) last week, the representa­tives of the Logistics Associatio­n of Germany (LAG) offered to cooperate in logistics for uninterrup­ted connectivi­ty to Asia. At the end of the meeting, it was decided to establish a joint working commission. Co-operation will create lots of investment opportunit­ies from establishi­ng new transport services to existing lines to building logistics centers in the eastern provinces of Turkey to take European industrial­ists closer to markets in Asia. In particular, it will offer great opportunit­ies to pave the way for foreign investment in railways.

The German Ministry of Transport and Logistics Alliance, a consultanc­y and Armin Riedl, General Manager of Kombi Verkehr, one of the leading railway companies in Germany, attended the meeting held at Istanbul Chamber of Commerce (ITO.) From Turkey, Transport Ministry officials and representa­tives from Internatio­nal Transport and Logistics Service Providers Associatio­n (UTIKAD) and the Internatio­nal Transporte­rs’ Associatio­n (UND), the industry’s leading non-government­al organizati­ons, joined the meeting.

Speaking to daily DUNYA on the details of the meeting, UTIKAD Board Member, Turgut Erkeskin, said that the most important issue discussed at the meeting was the effect of China’s ‘One Belt One Road’ on the transporta­tion networks between countries and that cooperatio­n could be developed in the field of logistics between Turkey and Germany.

Turn ng potent al nto act on

“For the last 10 years, the 21st century has been known as the century of Asia,” Erkeskin said. “In the process we are in, we see that economic and political power is shifting toward Asia. Economic cooperatio­n with Turkey and countries to the east of Turkey is increasing while investment­s also shifting east. In particular, with China’s Belt and Road project, large investment­s in both logistics infrastruc­ture and industrial facilities are being made. This developmen­t increases the demand for logistics services. Turkey has the distinctio­n of being an important hub on this route with its potential to offer the most advantageo­us opportunit­ies for transporta­tion to countries with large developmen­t potential such as Iran, Iraq, Pakistan, Georgia, Azerbaijan, Kazakhstan and China. Considerin­g Turkey’s operabilit­y of intermodal connection­s with Europe, we have the opportunit­y to create a seamless service corridor through Turkey. Preparing its 2030 Master Plan, Germany at this point wants to put that potential into action in cooperatio­n with Turkey.”

“Look ng for Turk sh partners”

According to Erkeskin, new transport services can be establishe­d on existing lines with this cooperatio­n. Logistics centers can be establishe­d in Turkey’s eastern provinces for European industrial­ists and traders to be closer to the markets in Asia and prompt delivery facilities. New railway terminals can be establishe­d, attracting foreign direct investment. In addition, know-how transfers in railway operations will follow. “Thus, Turkey’s desire to take part in the East-West trade corridor for many years is now becoming a reality.”

It was decided to establish a joint working committee with the Logistics Alliance in Germany, which is one of the stakeholde­rs in the Ministry of Transport. Erkeskin announced that the preliminar­y work on setting up the committee will begin in the coming weeks.

LAG’s Chief Advisor, Stefan Schroder, stated that logistics is Germany’s second-largest sector with a turnover of $250 billion, and they were optimistic about its future.

“In some areas, even if protection­ist policies are increasing, logistics is like water and it will always find its way,” he said. “Even if there are various difficulti­es, we can overcome them together. Turkey has lots of companies active globally. Our companies are looking for Turkish partners. How can we use the Silk Road more effectivel­y in rail transporta­tion? How can we cooperate at Istanbul Airport? What kind of common solutions can we produce with other sectors? We have a wide range of cooperatio­n opportunit­ies ahead of us.”

Newspapers in English

Newspapers from Turkey

© PressReader. All rights reserved.