Oct 03 2014
Fiata World Congress 2014 in Istanbul – Sustainable growth
Mr Erkeskin, Turkey is hosting the Fiata World Congress again quite soon after having welcomed the event in 2002.
Considering the dynamic development here in Turkey, that was a good decision! Today, Turkey accounts for 1% of global GDP, and it wants to become one of the world’s top ten economies by 2023.
Where do you see potential?
Foreign trade is a key. We want to treble imports and exports in ten years. Today they stand at USD 403 billion. Our population, landmass and geopolitical location will help us to get there. In addition, numerous multinational corporations that see Turkey as a hub for the Middle East and the Caucasus region are opening offices and branches in the country.
Turkish foreign trade has suffered lately as a result of the unrest in Syria and Iraq.
Yes – in the short term, little will change in the collapse in trade with Iraq and the embargo against Syria. However, we’re seeing an upward trend in trade with other neighbours Azerbaijan Georgia, and to a moderate degree the same with Iran.
The logistics industry is benefiting from high foreign direct investment. Is it a risk that so much external capital is driving the increase in prosperity?
For large-scale projects – in the energy or chemicals sectors, for instance, which subsequently open up opportunities in the logistics sector – foreign capital is essential. But the government sees to it that Turkish firms are also involved and that a healthy balance between foreign and domestic capital is maintained.
Infrastructure projects in Turkey are a big deal for the logistics industry too. The railways in particular are seen as a weak link in the modal split.
This is the field in which we have the most catching up to do in Turkey. Domestically, 95% of transportation is carried out on the roads, while 70–75% of our exports are transported by sea. The liberalisation of the railways and intermodal solutions are our greatest challenges, but they can be tackled with a bit of ambition. Ten dual-track railway lines are under construction, and route electrification is making great strides.
One example is the successful Balo project, which has been rolling since 2013. Since March 2014 we’ve been offering three weekly blocktrain departures between Bandırma / Tekirdag and Duisburg. Transport costs have come down considerably and demand is brisk. We want to increase the number of departures to ten by the end of 2015.
What’s the outlook for seaports like?
The privatisation of seaports is making good headway. You recently reported on efforts in the port of Derince in the ITJ, for example. This hub east of Istanbul has grown into an important centre for heavylift and bulk cargo transports. A connection to the railways plays an important role there too, because in six to twelve months the port expects to have a European-gauge railway link.
For some time now, port operators from Turkey have been investing abroad as well, in Europe (including Malta), Africa and Latin America. Read more
Source: ITJ