Turkey, one of the most dynamic economies among developing countries, is the bridge on the east-west axis and a reference for trade between Europe and Asia. The authorities plan to implement projects and programmes which encourage development, one of the most important objectives being to place Turkey among the first 10 global economies by 2023. The advantage of the geographical position (on Europe-Asia, Russia-Africa axis) allows Turkey to be a transport hub of goods estimated at over USD 2 Trillion. In this context, it is essential for Turkey to develop its transport infrastructure and logistics.
Trade in Turkey has significantly increased. The region is more and more active and present in the global trade system. In 2012, the country’s share in international trade was 1.2% and forecast for 2025 show an increase which exceeds 1.5%. The national economy, which increased by 5% annually over the last decade, provides many opportunities for the transport and logistics sector. In this sector, private and public investments have improved and the construction of new airports stands proof, as well as the construction of new railways (high-speed) and the development of ports. The Government’s objectives on infrastructure improvement for 2023 include: the increase of rail transport share to 10% and to 15% for passenger transport and freight transport respectively, the construction of another 9,000 km of high-speed railways, the construction of three ports and the increase of maritime freight transport to 10% and of container transport by 15%.
Next to road and maritime transport infrastructure, Turkey implements projects on the development of railway freight corridors to become a key point on the world’s map of logistics. Also, “projects for the construction of logistics centres are initiated. These centres are aimed to reduce transport costs by supplying services for different transport modes. It is estimated that by 2023 the total volume of freight carried in these centres will amount to USD 500 Billion and, according to TCDD’s development plan, the company wants to invest TRY 514.9 Million (USD 230 Million) in these centres”, shows the document “The Logistics Industry in Turkey”, launched at the end of 2013 by the Investment Support and Promotion Agency attached to the Prime Minister of the Turkish Republic (ISPAT).
As TCDD also operates maritime ports (Haydaparşa, Derince and Izmir) and has three subsidiaries (construction of locomotive – Tülomsaş, of passenger coaches – Tüvasaş and of freight wagons – Tüdemsaş), Turkey begins to promote railway freight transport and tries to identify new methods of increasing its market share (for example, in 2012, over 25 million tonnes of freight were transferred to railways and figures are increasing). The railway sector has many opportunities for investors because Turkey launches projects for the extension of the high-speed network, the rehabilitation of existing lines, the modernisation of infrastructure and used technology and for the improvement of transport and logistics
operations.
Diverse economy helps logistics develop
A strong and diverse economy will help extend the logistics industry whose value is “estimated at USD 80-100 Billion and growing to USD 108-140 Billion until 2017”. The development of industry will be influenced by the liberalisation of railway transport. As of May 2013, the new railway transport law associated with liberalisation will break state monopoly in railway transport, replacing it with a competitive and free business environment, allowing TCDD to develop its activity as infrastructure manager. The law will improve and expand the network with investments made by the public sector and private investors.
The Ministry of Transport will grant exploitation rights to the private companies that want to build the network and to supply freight and passenger transport services. Under the law, “when companies want to build railway infrastructure, the property requested for infrastructure will be expropriated by the ministry and the cost will be collected by the company, while the easement right will be granted to the company for approx. 49 years”.
As a result of the liberalisation process, investments will be accelerated, an integrated logistics network will be created, as well as industrial areas and airports, all these significantly stimulating Turkey’s economy.
The Government encourages private companies to collaborate with TCDD to acce-lerate the development of railway transport and to achieve a performing infrastructure. Therefore, it becomes important for the authorities that public investments would be correlated to private investments to develop railways, ports connectivity, logistics centres, production centres and plants. The implementation of the public-private model in developing the railway sector will create assets, such as work force, will make planning and the implementation of projects efficient, will increase financing levels, the expertise provided by the companies with experience in the industry.
“One of the many opportunities coming from privatisation and partnerships is connecting the railways to the existing production centres and plants, companies, logistics centres and ports. Even after exceeding the concession time and the PPP is completed, public-private partnerships will not stop. The method permits TCDD to reduce operation costs and to optimise efficiency”, states the report.
Based on strong trade relationships with Europe, RO-RO transport has become essential for transport in Turkey. It allows companies to avoid getting the permits imposed by Balkan countries (and associated costs) to pass through these countries; moreover, it reduces the companies’ costs and increases efficiency. “Trieste Port is preferred by the Turkish logistics operators due to its easy access to the main European locations. In 2012, continent trade amounted to USD 190 Billion. Turkey operates the RO-RO line which is an alternative to the Syrian border and carries around 100 thousand vehicles to the Middle East.
Apart from the RO-RO route, the new RO-LA routes will efficiently complete Turkey’s connections to Europe. TCDD has initiated this project to improve infrastructure centres for RO-LA and has selected railway companies from several countries as partners in this project: Bulgaria, Romania, Slovenia and Hungary. “The logistics centres located on the Trans-Asian railway axis and those from the Aegean Sea of Turkey are included in the future RO-LA transport”, the document states. The Aegean Logistics Villages will be put into the RO-LA network in Turkey to diminish the traffic of load. The RO-LA route will be from Istanbul to Bandırma and Mudanya, where it will connect to the Aegean Railway line.
Aegean Logistics Villages will be put into the RO-LA network in Turkey to diminish the traffic of load. The RO-LA route will be from Istanbul to Bandırma and Mudanya, where it will connect to the Aegean Railway line.
[ by Pamela Luică ]Share on:
