Logistics is the Art and Science of Determining Requirements; Acquiring them; Distributingthem and finally, Maintaining them in an operational ready condition for their entire life. (Stone, 1968)

Historical Perspective1950’s and early 1960’sIn this period, distribution systems were unplanned and unformulated. 1960’s and early 1970’sIn the 1960’s and 1970’s the concept of physical distribution was developed with the gradual realization that the ‘dark continent’ was indeed a valid area for managerial involvement.1980sFairly rapid cost increases and the clearer definition of the true costs of distribution contributed to a significant increase in professionalism within distribution.(centralized distribution, severe reductions in stock-holding and the use of the computer)

Historical PerspectiveLate 1980’s and early 1990’sCombining of materials management (the inbound side) with physical distribution (the outbound side).The term ‘logistics’ was used to describe this concept1990sSupply Change Management.Manufacturers and retailers should act together in partnership to help create a logistics mechanism.

Historical Perspective2000 and beyondFor many organizations, changes in logistics have provided the catalyst for major enhancements to their business.(Rushton, 2000)

Transportation system is the entire of labor,facilities,and resources that make up the movement capability in the economy.This capability refers to movement of freight and people.(R.Ballou, 1992)

Movement of Freight and People

Domestic Freight Movement

Bulk of the Freight Movement

WaterAir

TruckRailPipe

Transportation Agencies

Freight Forwarders

ShippersBrokers

Small Shipment Services

Federal ExpressUnited Parcel

ServiceOthers

Bulk of the Freight MovementSea FreightCost EconomiesFlexibilityAvailabilitySlow SpeesNeed for double handlingDelay ProblemsDamage

Bulk of the Freight MovementRoad FreightQuick ServiceReduced need for double handlingFlexibilityMinimum packaging cost

Bulk of the Freight MovementRail FreightDamage riskThere is a need to double-handle Slow speedUnreliableEconomicLimited rail heads

Bulk of the Freight MovementAir FreightRapid Transit TimeFast SpeedLead Time EconomyReduction in Packagin CostsExpensive

Bulk of the Freight MovementPipelineUnlike the case with the other four modes,pipelines a physical plant consist only of pipes,pumping stations, storage tanks,and land.(Ballou, 1992)

Intermodal TransportAn intermodal freight transport system is

characterized by the subsequent use of different traffic modes for moving goods stowed into an intermodal loading unit (ILU) from the consignor to the consignee(Johan Woxenius and Fredrik Bärthel).

Intermodal TransportThe cellular container ship

Intermodal TransportThe roll-on roll-off ferry (RORO)

Intermodal TransportMultifret wagon

OverviewThe share of the transportation and logistics

sector in Turkey’s GDP is estimated between 8-12%. (IGEME ,2009)

The size of Turkish transportation & logistics industry is determined as US$ 59 billion, while the share of the logistics service supplier market (Third Party Logistics) is estimated as US$ 22 billion in “Turkey Logistics Industry Survey 2008”. The industry has tripled since 2002 while the share of logistics service suppliers has only increased by 7% which signals an unrealized growth potential.(Quattro Business Consulting “Turkey Logistics Industry Survey ,2008)

Turkey lies between Europe and Asia serving as a bridge geographically, culturally and economically.(Republic of Ministry Investement Support Agency)

Road Transport As of 2010, having 91,7 percent of passenger

and 89,4 percent of freight transport, road transport constitutes a great share among the transportation modes in Turkey.

Turkish total road network is over 64,865 km, of which more than 31,395 km are state roads, 31,390 km are provincial roads and 2080 km are motorways.

Rail Transport Currently, TCDD has 11,052 km conventional line and

888 km high speed line which finally equals 11,940 km lines in total. 93 percent of these mainlines are single-track; 3161 km of total lines are electrified and 3908 km of them are signaled.

There are 452 km sidelines which enable the connection of 326 freight centers (such as Factory-organized industrial zones) with main railway network. (Republic of Turkey Ministry of Transport and Communication)

A budget of US$ 23.5 billion is allocated to railway

development up to 2023.(Deloitte, Investors’ Guide Turkey, 2009)

With regard to international transportation, block trains are operated reciprocally from Turkey to Germany, Hungary, Austria, Bulgaria, Romania and Slovenia in west

and to Iran, Pakistan, Syria, Iraq in east, and to Turkmenistan, and Kazakhstan in Central Asia. In this scope, 191 block freight trains are operated reciprocally per day including 158 domestic and 33 international trains. (Republic of Turkey Ministry of Transport and Communication)

Air Transport Turkey has 45 airports, 13 of which serve

international flights. . In 2010 there were more than 100 million airline passengers in Turkey.

Total number of transit flights were 304.540, international flights were 536.350 and domestic flights were 489.980.

In 2010, domestic cargo jumped to 598 thousand tons and international cargo reached 1.4 million tons.

Sea Transport 85 percent of the volume of Turkey’s foreign

trade transportation has been carried by sea.

Sea Transport The amount of container (including import,

export, cabotage and transit) handled in Turkish ports has reached 5.7 million TEU in 2010.

The amount of cargo (including import, export, cabotage and transit) handled in Turkish ports has reached 348.69 million tonnes in 2010

Sea Transport Turkish shipyard has become 70 in 2010 and

has managed to become well known throughout the world, especially in the construction of chemical tankers and container ships.

The number of ships in the Turkish-owned shipping fleet has become 1.239 in 2010.

Total tonnage of Turkish-owned fleet has reached 18.671.000 DWT in 2010. (Republic of Turkey Ministry of Transport and Communication)

Multi-modal Transport Maritime-railway connections in Haydarpaşa,

Derince, Bandırma, Alsancak, Samsun, İskenderun and Mersin Ports

Railway-road connections in Halkalı, Köseköy, Derince, Bozüyük, Çukurhisar, Ankara, Boğazköprü, Eskişehir, Kayseri, Başpınar, Biçerova, Mersin etc.

Train-ferry connection between Samsun-Kavkaz ports

RO-RO connections between;

Multi-modal Transport -Haydarpaşa -Ilichevsky (Ukraine) Ports, - İzmir – Ravenna – Monfalcone Ports (Slovenia), - İzmir – Salerno – Savona Ports (Italy), - İzmir – Mersin –Alexandria (Egypt) – Livorno (Italy) – Geneva

(Italy) –Mostaghanem (Algeria) Ports, - Pendik-Haydarpaşa-Trieste Ports(Italy) - Ambarlı-Trieste Ports(Italy) - Taşucu-Girne Ports(Turkish Republic Northern Cyprus) - Mersin- Magusa Ports(Turkish -Mersin –Trieste Ports (Italy) - Çeşme – Trieste Ports (Italy) - Rize – Poti Ports (Georgia) - Samsun – Novorossiysk Ports (Russia) - Trabzon-Sochi Ports, - Zonguldak-Ukraine Ports, - Train-ferry connections between Derince - Ilichevsky (Ukraine)

Ports and between Samsun

Logistic CentersModern logistic centers are planned to be

established in areas which are close to “Organized Industrial Zones” and convenient for technologic and economic developments as in other European Countries

Works for establishing 12 logistic centers has been underway to improve integrated combined transport in the country. (Republic of Turkey Ministry of Transport and Communication)

Hazırlayan:Egemen BİÇEN