Delegation of Estonian Logistics Enterprises Visited Turkey

A prominent delegation of Estonian logistics enterprises visited different companies in Turkey on 13 to 20 November introducing the geographical benefits of Estonia’s logistics companies and seeking cooperation opportunities.

Turkey lies between Europe and Asia serving as a bridge geographically, culturally and economically.

In Turkey, investments in the transportation system are concentrated on land transportation infrastructure, and the country has developed one of the largest land transportation fleets in Europe. The network of highways has been developed significantly and the highway length now stands at 64,865 km, of which 2,080 km are motorways. At present 95 percent of passengers and 90 percent of goods are conveyed by highway transport.

Turkey has a competitive advantage in maritime transport since it is surrounded by seas on three sides with the Mediterranean, the Aegean, and the Black Sea, together with the straits of the Dardanelles and the Bosphorus. The length of Turkey’s coastal borders is 8,333 km.

Maritime transportation is the most popular method of transportation for Turkey’s exports and imports, with respective shares of 50.7 percent and 53.2 percent in total. This is followed by road transportation, with a share of 40.3 percent of exports and 22.9 percent of imports in 2010. Meanwhile, air transportation comes third for both exports and imports.

Turkey has 10,984 km of railways, operated by the General Directorate of Turkish State Railways (TCDD). Since most of the railways have been in use for quite a long time, the Turkish government is aiming to modernize the system through various projects. A budget of USD 23.5 billion has been allocated to railway development up to 2023. As a result, TCDD’s quality of service will be increased and high-speed passenger train transport will become more widespread.

Turkey has 45 airports, 13 of which serve international flights. Turkish Airlines is one of the fastest growing airlines in Europe and the leader in traffic and capacity growth in Europe (AEA, 2009). Turkish Airlines is also the “Best Airline in Europe” (Skytrax World Airline Awards - 2011). Istanbul Ataturk Airport has been selected as the “Best Airport in Southern Europe” (Skytrax World Airline Awards - 2010). In 2010 there were more than 100 million airline passengers in Turkey.

As a result of the new projects in Turkey, combined transportation will gain more importance in the future. Public-private partnership models will be widely implemented for transportation infrastructure investments and traffic safety will be increased in all transport modes, with maritime safety being given priority. In freight transport, priority will be given to rail and maritime transport, while ports will become logistics centers that facilitate combined transport.

Although logistic services are new in Turkey, the sector is growing rapidly. Standing at the crossroads of major trade routes makes Turkey an important candidate to become a logistics center in the future.

Turkey’s ambitious vision of 2023, the centennial founding of the Republic, envisages grandiose targets for the transportation and logistics sector in Turkey. These targets include:

• 16 new large-scale logistic centers
• 36,500 km dual carriageway, 7,500 km motorway
• 70,000 km with bitumen hot-mix asphalt
• In 2019, an undersea tube and the 3rd bridge on the Bosphorus
• Bridge on the Dardanelles
• 10,000 km high-speed railway, 4,000 km additional railway
• 8,000 km with electricity and signaling
• 500 km railway will be renovated annually
• Opening up of railways to the private sector
• Renovation of terminals and stations and construction of new terminals for high-speed trains
• Support railway projects to connect Turkey with the Caucasus, the Middle East and North Africa
• New airports, 400 million passenger capacity (165 million)
• 3 new airports in Istanbul
• 750-plane fleet (200 regional)
• Connection of main ports with railways
• Transfer ports in Aegean/Mediterranean/Marmara/Black Sea
• Having at least one of the top 10 ports in the world by 2019
• 32 million TEU handling capacity for container transport
• Handling 500 million tons of solid and 350 million tons of liquid load
• 10 million DWT shipbuilding capacity
• 100 marinas with 50,000 yacht capacity

Source: “Turkish Transportation and Logistics Industry” report - Deloitte
               “Transport and Logistic Services” report - Export Promotion Center (IGEME)