TURKEY -2008

Country Presentation - Logistics

TURKEY

TURKEY

LOCATIONSoutheastern Europe and Southwestern Asia

bordering the Black Sea, the Aegean Sea

and the Mediterranean Sea

•7,200 km Coastline

• 2,627 km Territorial Borders

• 72 Million People

TURKEY

GEO-ECONOMICAL‘East Meets West’

Gateway from/toGateway from/to

• Europe

• Central Asia

• Black Sea

• East Mediterrenean

• Gulf

TURKEY

GEO-ECONOMICALAmong World’s 10 Big Emerging

Markets

Growing Industries

• Transport & Logistics

• Automotive

• Textiles

• Retailing

• Tourizm

• Telecommunications - IT

• Energy

• Iron & Steel

• Defense Industry

60% of the population are under age 30

TURKEY

GEO-ECONOMICALClose Integration With

International Community

MembershipsMemberships

• UN

• NATO

• European Council

• OECD

• IMF

• World Bank

• World Trade Organization

• EFTA

• Black Sea E.C. Zone

• EU Customs Union

TURKEY

EUCustoms Union In Power Since 1996

Turkey Fully Trade VolumeTurkey Fully Adopted EU Policies

• Trade Regime

• Legislative

• Common Foreign Trade

Tariffs vis-a-vis 3rd

Countries

Trade Volume

• Imports Increased by 40 % in

the First Year of the Union

• Today the Volume is about

-334 Billion USD per Year

-132 Billion USD Export

-202 Billion USD Import

TURKEYECONOMYTurkey’s Total Exports in Years

107.272

131.966

120.000

140.000

Exports 2000-2008

27.775 31.334 36.059

47.253

63.16773.477

85.535

0

20.000

40.000

60.000

80.000

100.000

Value US$

(000.000)

2000 2001 2002 2003 2004 2005 2006 2007 2008

Years

TURKEY

ECONOMYTurkey’s Total Imports in Years

201.961

250.000

Import 2000-2008

54.50341.399 51.554

69.340

97.540116.774

139.576

170.063

201.961

0

50.000

100.000

150.000

200.000

Value US$

(000.000)

2000 2001 2002 2003 2004 2005 2006 2007 2008

Years

TURKEY

ECONOMYTurkey’s Total Foreign Trade in Years

277.335

333.926

300.000

350.000

Total Foreign Trade 2000-2008

82.278 72.733 87.612

116.593

160.707

190.251

225.111

0

50.000

100.000

150.000

200.000

250.000

Value

(000.000 US$)

2000 2001 2002 2003 2004 2005 2006 2007 2008Years

TURKEY

Top 10 Trade(Export)Partnersof Turkey

• GERMANY USD 12,949

• UNITED KINGDOM USD 8,161

-41% to 7 countries, 6 of them EU Countries

(US$ 000.000)

• UNITED KINGDOM USD 8,161

• U.A.E USD 7,975

• ITALY USD 7,814

• FRANCE USD 6,615

• RUSSIA USD 6,478

• USA USD 4,290

• SPAIN USD 4,044

• ROMANIA USD 3,981

• IRAQ USD 3,915

TURKEY

• RUSSIA USD 31,365

• GERMANY USD 18,687

Top 10 Trade (IMPORT)Partners ofTurkey

(USD 000.000)

• CHINA USD 15,658

• USA USD 11,976

• ITALY USD 11,012

• FRANCE USD 9,022

• IRAN USD 8,200

• UKRAINE USD 6,106

• SWITZERLAND USD 5,589

• UNITED KINGDOM USD 5,324

TURKEY

LOGISTICSRegional Freight Flow

TURKEY

LOGISTICSInt’l Freight Value

US$ %

Export+Imports (USD)OTHER;

14.958,171;

4%AIR;

27.323,762; US$ %

SEA 180.752,610 54,2

RAIL 3.868,644 1,2

ROAD 106.887,513 32,0

AIR 27.323,762 8,2

OTHER 14.958,171 4,5

TOTAL 333.790,700 100,0

RAIL;

3.868,644; 1%

ROAD;

106.887,513;

32%

SEA;

180.752,610;

55%

8%

Rail Freight Figures Are As of End November 2008

TURKEY

LOGISTICS – Ocean TransportPorts in Turkey

TURKEY

LOGISTICS – Ocean TransportContainers Handled in 2008

3.120.357,00

30000003500000

TEU Volume in 2008

-Total 4,9 Million TEU

-67% in Marmara Region

845.273 922.09916.864

0500000

10000001500000200000025000003000000

TEU Value

Marmara Aegean Mediterranean Black

Seas

TURKEY

LOGISTICS - Ocean TransportAmbarlı Port Complex in Istanbul

TURKEY

LOGISTICS - Ocean TransportAmbarlı Port Complex in Istanbul

Facts & Figures

- 7 Terminals

- About USD 23 Billions of trade volume- About USD 23 Billions of trade volume

- 2.07 million TEU handled in 2008

- 42,16% of Turkey, 66,27% of the region

- 2nd largest in East-Med, bigger than Pireaus

- 7% of Turkish Foreign Trade is being handled

TURKEY

LOGISTICS - Ocean TransportAmbarlı Port Complex in Istanbul

4.000.0004.500.0005.000.000

Ambarlı, Marmara, Turkey Comparison

0500.000

1.000.0001.500.0002.000.0002.500.0003.000.0003.500.0004.000.000

TEU

2001 2002 2003 2004 2005 2006 2007 2008

Years

Ambarlı TEU Marmara TEU Total Turkey TEU

TURKEY

LOGISTICS - Ocean TransportAmbarlı Port Complex in Istanbul

2001 2002 2003 2004 2005 2006 2007 2008

Ambarlı TEU 358.000 564.000 775.000 1.078.000 1.186.000 1.446.269 1.939.864 2.067.943 Ambarlı TEU 358.000 564.000 775.000 1.078.000 1.186.000 1.446.269 1.939.864 2.067.943

Marmara TEU 763.334 1.007.317 1.311.882 1.723.246 1.907.497 2.285.311 2.944.937 3.120.357

Turkey TEU 1.533.457 1.933.218 2.444.525 3.053.370 3.300.316 3.822.727 4.711.523 4.904.593

Ambarlı vs.

Marmara 46,90% 55,99% 59,08% 62,56% 62,18% 63,29% 65,87% 66,27%

Ambarlı vs.

Turkey 23,35% 29,17% 31,70% 35,31% 35,94% 37,83% 41,17% 42,16%

TURKEY

LOGISTICS - Ocean TransportIstanbul – Transit Hub For Black Sea

TURKEY

LOGISTICS - Ocean TransportMERSIN – Preparing to be the leader of region

- One of the most important logistics centers for Turkey

and Middle East and Central Asia (CIS)

- Due to geogrophical location and multi-mode connection facilities- Due to geogrophical location and multi-mode connection facilities

- Seaport / Free Zone / Railway / Airport / Truck formation

- Studies have been started in coordination with the Undersecreteriat

of Foreign Trade to establih logistics center

- Project is funded by EU

- Recently, a new RO-RO line from Mersin to Trieste (Italy)

became operational

TURKEY

LOGISTICS – Ocean TransportPort Privatizations

- Hopa Port, Park Holding - 1997

In last 5 years Turkish Ports have gone through successful

Privatization process. Global players like Hatchison, PSA, Dubai Ports

have taken part in this process.

- Hopa Port, Park Holding - 1997

- Trabzon Port, Albayrak Group - 2003

- Derince, Turkerler Group – 2007

- Antalya Port, Çelebi & Kutman JV – 2007

- Mersin Port, PSA - 2007

- Container handling has increased 30%

- Break bulk handling capacity has reached to 4 million tons

- Vessel waiting time for berthing is down to 1 hour

-Samsun Port, Ceynak Logistics – 2008

-Bandırma Port, Çelebi Group - 2008

USD 2,8 Billion privatization revenue has been achieved

TURKEY

LOGISTICS – Road Transport Intl.

TURKEY

LOGISTICS – Road TransportVery regulated market place:

- A new law introduced in 2002

- Main principles are:

- Professional aptitude (proved by training & exam)

- Financial competence (proved by capital stock)- Financial competence (proved by capital stock)

- Professional credibility / good reputation

- The new law introduces 39 different type of licenses

Turkey is member to:

- TIR system

- CMR Convention

- ADR

TURKEY

LOGISTICS – Road TransportLargest Truck Fleet in Europe

TOTALTOTAL

TRUCK TRUCK 44.03944.039

LORRIESLORRIES 15.61315.613LORRIESLORRIES 15.61315.613

TRAILERTRAILER 3.0253.025

SEMISEMI--TRAILERTRAILER 52.58352.583

TANK TRAILERTANK TRAILER 723723

TOTAL CAPACITY (tons)TOTAL CAPACITY (tons) 1.194,8801.194,880

Number of CompaniesNumber of Companies 1.4201.420

Informations are as of end September 2008

TURKEY

LOGISTICS – Road TransportMajor routes

To the West:

- by road via Balkans

- by ro/ro services via Italy

To Russia and Central Asia (CIS)

- by various ro/ro services from Black Sea Ports to Russian Ports

- by road via Iran

- by road via Georgia

To the Middle East, Near East and Gulf Countries:

- by road via Iran / Iraq / Syria / Jordan

TURKEY

LOGISTICS – Road TransportForeign Trade on the Road

Value Of Goods By Road

60.000

70.000

80.000

90.000

100.000

-Total road freight revenue in 2008 USD 4,5 Billion

- Major destination is Europe, share in total 51%

0

10.000

20.000

30.000

40.000

50.000

60.000

2000 2001 2002 2003 2004 2005 2006 2007 2008

YearsValue

(.000)

TURKEY

LOGISTICS – Ro/Ro Operations

TURKEY

LOGISTICS – Ro/Ro Operations

140000160000180000

Nr.Of Trucks Used Ro/Ro

-In 2008, 18% of road traffic is moved by ro/ro services

- 50% share in Europe trucking

020000400006000080000

100000120000140000

Traffic

2003 2004 2005 2006 2007 2008

Years

TURKEY

LOGISTICS – Railway TransportRailway Network

TURKEY

LOGISTICS – Railway Transport

-Total length of the railways 10.984 km

- 21% is electrified

- Private companies can operate their own freighter cars- Private companies can operate their own freighter cars

- Monthly block train departures has reached to 3750

- 750 block trains for international operations

- 7 block train routes to Europe

- Automotive transportation by rail

TURKEY

LOGISTICS – Railway Transport

2.500,000

3.000,000

3.500,000

TCDD Cargo Valumes

0,000

500,000

1.000,000

1.500,000

2.000,000

2.500,000Volumes

(Tons)

2003 2004 2005 2006 2007 2008

Years

Rail Freight figures are as of end November 2008

TURKEY

LOGISTICS – Rail-Ferry Lines

TURKEY

LOGISTICS – Railway Transport

Two Major Projects:

- MARMARAY- MARMARAY

Underground Connection between

Istanbul’s European and Asian sides

- BAKU / TBILISI / KARS

Railway Connection

of Anatolia with Caucasus

TURKEY

LOGISTICS – Railway TransportMarmaray Project

- Rail tube-tınnel beneath

BosphorusBosphorus

- Linking Europe rail network to

Middle East and CIS

- Total length 1387m

- Planned to be in use by 2010

TURKEY

LOGISTICS – Railway TransportBaku/Tbilisi/Kars

TURKEY

LOGISTICS – Railway TransportRegional Route Development

1- Hopa – Batumi Railway Connection

2- Samsun – Poti Ferry Connection

3- Baku – Tbilisi – Kars Railway Connection

TURKEY

LOGISTICS – Air Transport

- 24 Domestic Airports - 23 International Airports

TURKEY

LOGISTICS – Air Transport

-Total 17 Airlines acredited by Civil Aviation

- Representing 270 aircrafts

- 74.387.000 passengers / 1.130.464(including cargo,

baggage and mail-only cargo 335.485 tons) tons cargobaggage and mail-only cargo 335.485 tons) tons cargo

- Flag Carrier – TURKISH AIRLINES

- 128 Passenger plane / 4 Cargo plane

- Other Carriers

- MNG Airlines / 16 Cargo plane

- ACT Airlines / 7 Cargo plane

- Kuzu Airlines / 7 Cargo plane

TURKEY

LOGISTICS – Air TransportFreight Volume

AIR FREIGHT TRAFFIC

2.000.000

Domestic International Total

75.19% Int’l traffic

0

500.000

1.000.000

1.500.000

2.000.000

2002 2003 2004 2005 2006 2007 2008

Years

Tons

2002 2003 2004 2005 2006 2007 2008

Domestic 181.198 188.936 262.647 315.858 373.055 414.192 399.213

ınernational 698.935 742.255 860.461 933.697 973.934 1.131.833 1.130.464

Total 880.133 931.191 1.123.108 1.249.555 1.346.989 1.546.025 1.529.677

*Cargo, Baggeges and mails

TURKEY

LOGISTICS Regional Cooperation Agreements

TRACECA – The New Silk Route

- Turkey is member to TRACECA Interstate–Programme

- And party to MLA, Basic Multilateral Agreement- And party to MLA, Basic Multilateral Agreement

ECO – Economic Cooperation Organization

- Transit Transport Framework Agreement

These agreements contain standards and regulations aimed at

the facilitation and harmonization of transit transport for the

signatories, including the republics of Central Asia.

TURKEY

LOGISTICS – TRACECA

TURKEY

LOGISTICS – ECOECOLPAF – ECO Logistics Providers Associations

Federation

TURKEY

LOGISTICS – ECOECOLPAF – ECO Logistics Providers Associations

Federation

ECOLPAF is under establishment by:

- ICC, Istanbul Chamber of Commerce

- UTIKAD, Turkish Freight Forwarders and Logistics Service Providers Association- UTIKAD, Turkish Freight Forwarders and Logistics Service Providers Association

ECOLPAF’s Mission:Representation of the vast majority of National Organisations of ECO

Freight Related Service Providers