TURKEY: THE KEY TO COMMERCE AND LOGISTICS
IN THE LAST 15 YEARS, TURKEY HAS REALIZED INVESTMENTS OF MORE THAN $362 BILLION TO STRENGTHEN ITS TRANSPORT INFRASTRUCTURE. THE MOST IMPORTANT CHARACTERISTIC OF THESE INVESTMENTS IS THE DEVELOPMENT OF COMBINED TRANSPORTATION AND THE BALANCING OF TRANSPORTATION MODES.
The shift of production in recent years from the West to the East and the rapid increase of trade wars has meant that the direction of the movement of goods has changed. The current undertaking by the large producer China of the One Belt One Road has meant that with the goal of increasing exports, the income from exported products is available in a shorter period of time and under better economic conditions. Turkey, which is located in an important transit position, has today taken on increasing geostrategic importance.
Commercial logistics have now become an important factor in international competition due to delivery time and transportation costs. Countries and companies which understand that in addition to simplifying and increasing production and making it less expensive, one of the most important factors is logistics are now planning their strategies accordingly. At this point, due to its central location, Turkey shines as an appealing destination which offers unique opportunities.
The ease and attainability of logistics mean that the investment appeal of the country continues to rise. The $1.9 billion of foreign investment that has been made over the last ten years is only one such indication. These investments are the herald of even greater investments.
With the investments that have been made in transportation infrastructure, Turkey’s geologistic position is becoming stronger. While making new highways, bridges, and railways, giant projects like the Avrasya Marmaray tunnels, the Yavuz Sultan Selim Bridge, the North Marmara Highway, and
Istanbul Airport have been realized. All these investments are materializing in line with a specific strategic purpose. In order to be able to give the most effective and rapid response to the future flow of trade, the East-west and North-south corridors are being widened. Again, in this scope, trade corridors are being formed between countries in Asia, Europe, North Africa, the Middle East, the Caucasus, and the Northern Black Sea region.
In the last 15 years, Turkey has realized investments of more than $362 billion to strengthen its transport infrastructure.
The most important characteristic of these investments is the development of combined transportation and the balancing of transportation modes. The investments aimed at making Turkey a production, distribution, and depot center are rapidly continuing and the process of realizing 21 logistic centers throughout the country is underway.
While the size of the Turkish logistic sector has grown to $150 billion in the last decade, the cargo capacity has increased fourfold. At the same time as all the customs gates are being renewed with an investment of $1.6 billion, the Single Window System, which will develop the technical infrastructure, has also come into play. The process to make Turkey the first country with digitalization in customs has begun. In this way, the procedures and processes will be shortened, while also being made more secure.
THE COUNTRY THAT USES TRANSPORTATION MODELS IN THE MOST EFFECTIVE MANNER
Turkey is not just a country that is strong due to its location
-it also carries out investments to add strength to its unique position. Turkey can use highways, marine transport, railways, and aviation in international commerce in the most effective manner. Thanks to the investments that have been made, as well as the improvements and reorganization of existing models, Turkey aims to take a larger slice of the logistic pie which worths $5 trillion. Direct highway transportation can be carried out from Turkey to 70 other countries, while in just 3 hours 1.5 billion people can be reached by air. At the same time, the continuous railway that starts in China and stretches to Europe, which offers the most rapid service, can only be realized through Turkey. Furthermore, the existing containers and Roro ports in the country provide services for every type of maritime transportation.
A ROLE DESIGNED FOR LOGISTICS
There is no other example of a country which has directly entered all modes of international transport and which can provide transport services. In this context, it is as if Turkey is a country that has been especially designed for logistics. There is no corridor in East-west trade that allows Turkey to be completely bypassed. In all the corridors that have been
formed, it is necessary to include Turkey. The most important of these is the One Belt One Road undertaking that China has commenced. The central corridor of the new Silk Road Project, which consists of three branches, runs through Turkey. Turkey contributed to this corridor with the Baku-tiflis-kars rail line, which began to operate in 2018. The Halkalı-gebze railway allows trains coming from China to go as far as Europe without interruption. In addition, when the railway over the bridge built on Bosphorus starts to function, a new alternative for East-west trade will come into play. With the privatization of the railway in Turkey, the way for the private sector to directly invest in this area has been opened. Now, any company can invest in their own locomotives and provide services.
Working towards the goal to form a double-line rail corridor on the East-west and North-south axes, and in order to support the Trans-asia central corridor, the 1,213 kilometers of highspeed train railway have been increased to 12,915 km, and the 11,319 kilometers of conventional railway have been raised to 12,115 km. Thus, a total of 25,030 kilometers of railway will go into service in 2023.
With the youngest fleet on the international roads of Europe, Turkey offers direct transport to 70 countries, thus bringing $50 billion worth of exports to customers. Turkish carriers, who overtake their competitors with their service quality and productivity, are preparing themselves for the future. The sector, which is in complete accordance with EU regulations, plans to offer much more effective and productive services when the renewal and improvement of the land customs has been completed.
Another area in which Turkey offers great advantages is air transportation. Turkey is in a geographical position that makes it possible to reach 1.5 billion people within a three-hour flight. Not only are there great advantages in transit flights, but, at the same time, Turkey is close to a region in which the
demand for air transportation has increased the most. With the investments it has made, Turkey offers the chance of flying direct to over 60 national capital cities, and has enjoyed concrete gains from these. In addition, new regulations have opened the way for competition and private–public sector cooperation. Istanbul Airport, which recently began to operate, has a capacity to handle 2.5 million tons of cargo. When the second phase is complete, this will reach 6 million tons and Turkey will be one of the two largest countries in the world in air cargo.
Turkey, which is constantly developing maritime transport, with its container and Roro ports, has the infrastructure to serve all kinds of ship and cargo. The Turkish ports, which handle close to 500 million tons of cargo, occupy an important place in the commercial axis and present important cooperative advantages for international highway and railway transportation. The total of 29 lines that connect to abroad by Roro can serve close to 400,000 vehicles per year. As a result, Turkey is one of the leading countries in Roro, with a fleet that grows more with each passing year.
Turkey, at the crossroads of three continents, is a base for regional production as a result of its proximity to raw material sources and a very expansive market. In addition, Turkey has a young and qualified workforce.
The most recent investments in logistics mean that Turkey now has even greater potential. This presents new opportunities both for logistics and for the sectors that grow with logistics.