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COUNTRY REPORTTURKEY


financially and politically stable right now. But people do not see it like this from outside. They watch the arguments between American, European and Turkish politicians on the news.” Turkish President Recep Tayyip Erdogan


has been strengthening the country’s ties with Russia, whose state-owned Rosatom is constructing Turkey’s first nuclear power plant at Akkuyu in Mersin. The decision to purchase Russian


fighters rather than US-built planes has only added to the tensions between Turkey and its fellow NATO members. Relations with the USA are particularly


tense at present. In October, for instance, the USA pushed up tariffs on Turkish steel to 50 percent, and called a halt to all trade negotiations with Turkey, citing the country’s actions in neighbouring Syria. Erdil said the fluctuating tariffs between


the USA and Turkey are affecting projects, both directly and indirectly. For example, in 2019, companies involved in US transmission line projects tended to avoid importing Turkish products due to the uncertain trade relations between the two countries. On top of the political divergence


between the USA and Turkey, the latter is experiencing instability on its southern border, serious immigration problems arising from the civil war in Syria and threats of terrorism from various organisations – plus international disagreements regarding how best to solve these problems – all of which are creating greater uncertainty.


Infrastructure complications An ongoing difficulty for the project logistics sector in Turkey is the country’s infrastructure and its effect on the cost of delivering logistics services. “Unfortunately, the Department of


Transport, municipalities and the General Directorate of Highways are not in good concordance with each other and the industrial zones,” Erdil explained. “Manufacturers have been unable to transport their products to the nearest ports due to new tunnels, bridges and viaducts. “I can count more than ten projects in


Turkey that have been lost due to high logistics costs. In Q1 2019, new projects were tendered by European companies active in the CIS, and those European manufacturers were selected for the projects instead of Turkish manufacturers. “The reason is simple,” Erdil continued.


“Turkish factories are spending fortunes on their FOB [free on board] costs. At the end


www.heavyliftpfi.com


For new investments and projects, Turkey is financially and politically stable right now. But people do not see it like this from outside.


– Bahadir Erdil, Logistics Plus


of the day, not only are the factories losing business but also the logistics companies, Customs brokers, warehouses, ports and all other related parties. It is a domino effect.”


‘Wrong approach’ Another part of the problem is what Kaan Aydin, business development manager at Bati Innovative Logistics, defines as “the wrong approach to logistics”, especially project logistics. He observed: “As Bati Group one of our


biggest achievements has been lowering the logistics budget of our customers; however, this is only possible if we can engage with them in the early stages [of a project].” The tendency among shippers is to


approach logistics companies only at a late stage, once all parts are produced. “This leads to higher costs and inefficient shipment methods, which take more effort, cost and time,” Aydin said. There are also onerous bureaucratic


processes to contend with in Turkey. While January/February 2020


45


Turkey has many yacht, transformer, power plant and wind blade projects to offer, Bati says.


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