Transportation & Logistics Industry in Turkey

Foreign Market Consulting Ltd. Sti.

Istanbul

September, 2014

Transportation and Logistics

Industry in Turkey

Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey

Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.com • [email protected]

Contents

© 2014 Foreign Market Consulting Ltd. Sti.

A Overview Page 03

B Road Transportation Page 05

C Rail Transportation Page 11

D Maritime Transportation and

Shipbuilding IndustryPage 16

E Air Transportation 1

F Main Institutions & Companies Page 26

G Market Outlook Page 28

3

• Turkey's geographical location between the East and the West creates opportunitiesfor transportation activities and logistics projects.

• Compliance with the EU standards will support the development of logistic networks,infrastructure, vehicles and environmental standards.

• More than 143 thousand companies and 890 thousand employees active in theT&L industry. (Source: Social Security Institution, 2014)

A. Overview

Introduction

4

A. Overview

Modes of Transport

Source: Turkish Statistical Institute, 2014

Sea 55%

Road 35%

Air 8%

Rail 1%

Other1%

Exports by Mode of Transport, 2013

Sea55%

Road16%

Air13%

Rail1%

Other15%

Imports by Mode of Transport , 2013

5

Village Roads, 323 043

Provincial Roads - Other, 30 844

State Highways - Divided Roads, 18 524

State Highways - Other, 12 817

Motorways, 2 127Provincial Roads - Divided

Roads, 1 311

Road Lengths, km, 2013

B. Road Transportation

Road Lengths

*Divided Road: A highway composed of a separator that distinctly divides the traffic in one direction of the same highway from the traffic

of other direction.

Source: Turkish Statistical Institute, General Directorate of Highways, General Directorate for Local Authorities, 2014

6


Freight and Passenger Transportation

Freight and Passenger Transportation and the Circulation on the State Roads, Provincial Roads and Motorways (Mn)

Vehicle-km Ton-km Passenger-km

Total State road Provincial

road

Motorway Total State road Provincial

road

Motorway Total State road Provincial

road

Motorway

2011 85 495 62 276 7 512 15 707 203 072 147 631 8 548 46 893 242 265 167 851 19 779 54 635

2012 93 989 64 661 12 949 16 379 216 123 151 722 15 650 48 751 258 874 172 226 29 725 56 923

2013 99 431 67 915 13 551 17 965 224 048 156 609 16 358 51 081 268 178 178 045 31 139 58 994

Vehicle-km: Unit measure of vehicle traffic corresponding to the conveyance of a vehicle over a distance of one kilometer.

Ton-km: Unit measure of goods traffic corresponding to the conveyance of goods over a distance of one kilometer.

Passenger-km: Unit measure of passenger traffic corresponding to the conveyance of a passenger over a distance of one kilometer.

Source: Turkish Statistical Institute and General Directorate of Highways, 2014

7


E Roads in Turkey

Source: General Directorate of Highways, 2014

8


The Northern Marmara Motorway and the Yavuz Sultan

Selim Bridge

Source: http://3kopru.com

• Executed by IC Ictas – Astaldi Consortium for a period of 10 years 2 months and 20

days and then will be transferred to the Ministry of Transportation

• 8 lane highway and 2 lane railway on the bridge

• The widest suspension bridge in the world with a width of 59 m and the longest

spanning one that has a rail system on it, with a main span of 1,408 m

• The suspension bridge with the highest tower of the world, with a height of more than

322 m

• Construction commencing in 2013 and aimed to be completed in 2015

• Northern Marmara Motorway of nearly 115 km length, 19 junctions and linking roads

• Investment volume of TRY 4.5 bn

http://3kopru.com/

9

• Constructed by Nurol-Ozaltin-Makyol-Astaldi-Yuksel-Gocay group.

• Suspension bridge with a length of 3 km

• Construction started in 2013 and will end in 2020.

• The travel time btw. Istanbul and Izmir will decrease to 3.5-4 hours, down from 8-10

hours.

• 384 km highway and 43 km connection roads, 427 km in total

• Investment volume: TRY 10 bn


Gebze-Orhangazi-Izmir Highway

Source: www.otoyolas.com.tr

http://www.otoyolas.com.tr/

10


Istanbul Strait Road Crossing Project

Source: www.avrasyatuneli.com

• Between Kazlicesme and Goztepe along a 14.6 km route including a 5.4 km twin-

deck tunnel that will cross the Bosphorus beneath the seabed.

• By the partnership of Yapi Merkezi from Turkey and SK E&C from Korea.

• Construction began in 2011 and will last 55 months.

• Investment volume: USD 1.3 bn

http://www.avrasyatuneli.com/

11

C. Rail Transportation

Length of Railways and Volume of Rail Transportation

Length of Railways, Train, Passenger, Freight Transportation and Ton Kilometer

Year Length of railways

(Km)

Number of

passengers,

Thousand

Freight amount

(Tons, Thousand)

Train-kilometer,

Thousand

Passenger-kilometer,

Thousand

Ton-kilometer,

Thousand

2011 9 642 85 752 25 421 40 332 5 882 000 11 677 000

2012 9 642 70 284 25 666 35 332 4 598 000 11 670 000

2013 9 718 46 441 26 597 28 945 3 775 000 11 177 000

Train-kilometer: Unit measure of distance representing the movement of a train over one kilometer.

Passenger-kilometer: Unit measure of passenger traffic corresponding to the conveyance of a passenger over a distance of one kilometer.

Ton-kilometer: Unit measure of operating performance which corresponds to the hauling of one tonne of goods over a routed distance of

one kilometer.

Source: Turkish Statistical Institute and Turkish State Railways, 2014

12


TCDD 2023 Vision

Source: Turkish State Railways, 2012

13

• Logistics centers, aimed to develop combined transportation integrated with other

modes of transport, started to be established throughout Turkey.


Logistics Centers

Green: Active; Red: Under construction; Blue: At the project and expropriation phase

Source: Turkish State Railways, 2014

14


Marmaray

Source: www.marmaray.com

• Planned to connect European and Asian rail network via a tunnel under the

Bosporus.

• Provides an uninterrupted passenger and freight transportation across the Istanbul

Strait.

• Started in 2004 and came into operation in 2013.

• 76.3 km total length, with 1.4 km immersed tube tunnel.

• Capacity of 75,000 passengers per hour per direction.

http://www.marmaray.com/

15

• Constructed on the basis of the Georgian-Azerbaijani-Turkish inter-state

agreement.

• Length of new line: 73 km (Turkish side) + 29 km (Georgian side) = 102 km

• The existing lines in Azerbaijan and Georgia to be rehabilitated: 503 km.

• To be completed in late 2014.

• Construction cost in the Turkish section is USD 220 mn.


Kars-Tbilisi-Baku Railway

Source: Republic of Azerbaijan Ministry of Transport

16

• 385 mn tons of cargo was handled in Turkish ports in 2013.

D. Maritime Transportation and Shipbuilding

Freight Handling in Ports

Source: Ministry of Transport, Maritime Affairs and Communications, 2014

Liquid Bulk Cargo, 122.6, 31.8%

Solid Bulk Cargo, 103.7, 26.9%

Container, 84.7, 22.0%

General Cargo, 66.1, 17.2%

Cargo Carried in Vehicles, 8, 2.1%

Freight Handling in Ports As Per Type (Mn tons, Percentage, 2013)

17

Bulk Carriers ,

4,511,037, 49%

Liquid/Gas Tankers , 1,876,860,

20%

Dry Cargo Vessels (General cargo) ,

1,744,129, 19%

Containers , 951,800,

10%

Service Ships ,

67,576, 1%

Passenger Ships ,

51,580, 1% Other, 16,007, 0%

Mercantile Navy By Type (DWT), 2013

Dry Cargo Vessels (General

cargo) , 473, 25%

Passenger Ships , 259,

13%

Fishing Vessels , 222, 12%

Liquid/Gas Tankers , 213, 11%

Sea Vehicles , 178, 9%

Boats and Yachts for Sports and Entertainment , 168, 9%

Towing Boats , 120,

6%

Bulk Carriers , 109, 6%

Service Ships , 95,

5%

Containers , 72, 4%

Mercantile Navy By Type (Number of Ships), 2013


Mercantile Navy (Ships bigger than 150 GT)

• Turkish mercantile navy is composed of 1,909 ships bigger than 150 GT with a total

size of 9.2 mn DWT in 2013.


18

• 72 shipyards, the majority is in three cities: Istanbul (26), Yalova (22), Izmir (21).

• 3.6 mn DWT/year project capacity in active shipyards.

• 49 shipyards are at the investment phase, the majority (17) of them is in Yalova.

• Turkey is a net exporter of marine vessels: USD 1.1. bn of exports and 900 mn of

imports.

• 22 thousand people are employed in shipyards.

• Turkey ranks 6th in world new ships orderbook with 66 ships, following China, S.

Korea, Japan, Vietnam and Philippines.

• 210 ships (up from 99 in 2003), corresponding to 750,000 LDT (up from 193,000 in

2003), were recycled in 2013.


Shipyards


19


Main Ports

Main Port Regions in Turkey

PORT REGIONTOTAL HANDLING

(Mn Tons, Jan.-Sep. 2013)Share %

KOCAELI 46.2 16%

BOTAS(CEYHAN) 42.2 15%

AMBARLI 31.1 11%

ALIAGA 29.5 10%

MERSIN 24.4 8%

ISKENDERUN 24.1 8%

TEKIRDAG 12.4 4%

GEMLIK 9.2 3%

IZMIR 8.6 3%

KARADENIZ EREGLI 7.9 3%

KARABIGA 7.4 3%

SAMSUN 6.3 2%

ANTALYA 5.9 2%

ZONGULDAK 4.6 2%

TUZLA 4.2 1%

BANDIRMA 3.8 1%

ISTANBUL 3.6 1%

GULLUK 3.5 1%

CANAKKALE 3.3 1%

TRABZON 2.3 1%

OTHER 9 3%

TOPLAM 289.8 100%

Source: Ministry of Transport, Maritime Affairs and Communications, Directorate General of Merchant Marine, 2013

20

• Candarli Port: Will be the largest container port of Turkey and 10th largest one in

Europe, construction started in 2011. The capacity will be 12 mn TEU/year.

• Filyos Port: Will be a port complex with combined transportation. The capacity will

be 25 mn tons/year.

• Mersin Container Port: Will be used as a base for transportations to East

Mediterranean, Middle East and Central Asia. The capacity will be 12 mn TEU/year.


New Port Projects


21

E. Air Transportation

Aircraft, Passenger and Freight Traffic at the Airports

Air Traffic 2009 2010 2011 2012 2013 CAGR

2009-2013 %

Passenger Traffic 86,001,343 103,53,513 118,292,000 131,029,516 149,995,868 15%

Aircraft Traffic (incl.

overflight)1,066,053 1,213,125 1,335,185 1,376,486 1,504,973 9%

Freight Traffic (tons) 1,726,345 2,021,076 2,249,473 2,249,133 2,595,317 11%

Source: General Directorate of State Airports Authority, 2014

22


Number of Operators, Aircrafts and Airports

2012 2013 2013/2012 Change

Number of airline operators 15 13 -13.3%

Number of airtaxi operators 55 53 -3.6%

Number of aircrafts of airline operators 370 385 4.1%

Number of aircrafts of airtaxi operators 198 214 8.1%

Seat capacity of aircrafts 65,208 66,639 2.2%

Air cargo capacity (tons) 1,264,513 1,639,130 29.6%

Number of airports (Total) 49 52 6.1%

•Number of airports (Domestic & international lines) 23 26 13.0%

•Number of airports (Domestic lines) 26 26 0.0%

Source: Directorate General of Civil Aviation, 2013

23


Main Airports

Istanbul Ataturk,

23%

Istanbul Sabiha

Gokcen, 16%

Ankara Esenboga,

12%

Izmir Adnan Menderes,

10%

Antalya, 7%

Adana, 5%

Other, 27%

Airports' Shares in Passenger Traffic (Domestic Lines), 2013

Istanbul Ataturk,

47%

Antalya, 29%

Istanbul Sabiha

Gokcen, 9%

Mugla Dalaman,

4%

Izmir Adnan Menderes,

3%

Mugla Milas-

Bodrum, 3%

Ankara Esenboga,

2% Other, 3%

Airports' Shares in Passenger Traffic (International Lines), 2013

Source: The Union of Chambers and Commodity Exchanges of Turkey and General Directorate of State Airports Authority, 2014

24

• Will be the largest airport in the

world

• Limak-Kolin-Cengiz-Mapa-

Kalyon group won the tender

with a proposal of EUR 22.2 bn

• Total investment volume will be

EUR 10.2 bn

• Construction will finish in 2018

• Passenger capacity: 150 mn

• 76.5 mn sqm area


Third Airport in Istanbul

Source: www.megaprojeleristanbul.com, 2014 Source: Radikal newspaper, Oct. 29, 2012

http://www.megaprojeleristanbul.com/

25


Airlines

Source: The Union of Chambers and Commodity Exchanges of Turkey, 2014

Turkish Airlines, 52.6%

Pegasus, 26.9%

Onur, 8.2%

Atlas Jet, 6.2%

Sun Express,

5.5%

Other, 0.6%

Market Shares in Passenger Traffic (Domestic Lines) , 2013

Turkish Airlines, 63.5%

Pegasus, 14.7%

Sun Express,

7.8%

Onur, 4.0%

Atlas Jet, 3.2%

Freebird, 3.0%

Corendon, 2.5% Tailwind,

1.4%

Market Shares in Passenger Traffic (International Lines) , 2013

26

F. Main Institutions & Companies

Public Institutions

MINISTRY OF TRANSPORT,

MARITIME AND COMMUNICATIONS

www.ubak.gov.tr

MARITIME

General Directorate of Merchant Marine (DTGM)

General Directorate of Sea and Inland Waters (DIDGM)

General Directorate of Shipyards and Coastal Structures (TKYGM)

Directorate General of Coastal Safety (KEGM)General Directorate of Infrastructure Investments (AYGM)

RAILWAY

Turkish State Railways (TCDD)

Turkish Locomotive and Engine Industry Inc (TULOMSAS)

Turkish Railway Machines Industry Inc (TUDEMSAS)

Turkish Wagon Industry Inc(TUVESAS)

General Directorate of Infrastructure Investments (AYGM)

ROAD

Directorate General of Highways (KGM)

Directorate General of Highway Regulation (KDGM)

Directorate General of Dangerous Goods and Combined Transportation (TMKT)

AVIATION

Directorate General of State Airports Authority (DHMI)

Directorate General of Civil Aviation (SHGM)

General Directorate of Infrastructure Investments (AYGM)

http://www.ubak.gov.tr/

27

F. Main Institutions & Companies

Main Transportation and Logistics Companies

Company Name Net Sales (TRY mn, 2013)*

Turkish Airlines 18,776.8

Pegasus Hava Tasimaciligi 2,404.1

Borusan Lojistik 1,026.3

Netlog Lojistik 960.1

Ekol Lojistik 919.8

Ceva Lojistik 756.5

Omsan Lojistik 637.9

Horoz Lojistik 626.4

Taha Kargo 572.5

Fasdat Gida Dagitim 552.6

*EUR 1 = TRY 2.528 in 2013

Source: Capital Magazine, August 2014

28

• Air transportation: 450 mn passengers/year capacity in airports.

• Maritime transportation: 50 mn DWT Turkish owned merchant navy, among thetop 10 countries in the world.

• Road transportation: 37,000 km divided roads, 8000 km of which is motorways.

• Rail transportation: 13,000 km new railway construction (3,500 km high speedrailways, 8,500 km speed railways, 1,000 km conventional railways), to reach 25,000km railways in total.

G. Market Outlook

2023 Targets


Confidentiality

Foreign Market Consulting Ltd Sti handles all data and information confidentially and also asks all

information to be handled confidentially, especially regarding the sources used.

Liability

FMConsulting receives information and data from third parties and presents the gathered data to its

customers. Thus, FMConsulting does not take any responsibility for the accuracy of any declaration or

precision of any gathered data.

Foreign Market Consulting Ltd. Şti. • Dede Yusuf Sok. No:11, 34453 Büyükdere Sarıyer İstanbul - Turkey

Tel: +90-212-3638 052 • Fax: +90-212-3638 517 • www.fmconsulting.info • [email protected]

Transportation & Logistics Industry in Turkey

Business

Transcript of Transportation & Logistics Industry in Turkey