Published On: Sun, Nov 18th, 2018

A brief review of the logistic sector in Turkey and prospects for the future

Turkey attributes great importance to the “TRANSPORTATION & LOGISTICSSector alongside sectors such as automotive, textile and tourism that substantially contribute to its economy and foreign revenues. The fact that the country has a strategic advantage of functioning as the bridge between Europe and Asia certainly has a strong impact on this evaluation. It is also announced by Turkey’s administration that the country has ambitious targets in domestic logistics included in its master plan for 2023.

This being the case when we look at the development the sector has lived through we can see that the logistics sector has attracted US$1.9 billion investment in 10 years.

Further reviewing the performance figures of the sector;

– It provides an employment capacity of approximately 400 thousand people substantially contributing to one of the main issues of the country for instance.
– On the other hand, the sector which has one of the largest vehicle fleet in EU with over 800,000 registered lorries and an air fleet of 540 aircraft
– used for valuable cargo transportation good enough for a cargo handling capacity of 400 million tons in 2017
– contributes to the country’s GDP with a 14 percent share and an operation volume of approximately US$ 150 billion.

The administration hopes that Turkey can become a cargo transfer center after the full launch of Istanbul Airport (with first stage opened in October 2018) and thus considers the sector of major priority for Turkey’s economic progress.

This said and despite the promising future for the sector, the current picture is not very satisfying as expressed by top professionals in said business area as the annual growth rhythm of 20 percent in the past has now dropped down substantially. Experts note that in countries rendering light value heavy weight services such as Turkey logistics market size should normally be somewhere round 10 percent of the GNP (Gross National Product).

The reason as expressed by professionals again mainly relates to the general economic picture of the country which has not been very satisfactory lately. They say “the better the economy the stronger growth the logistic market enjoys”.

The picture is quite clear actually; At the end of the day, companies aware of the need to use new technologies and diversify the business attributing importance to foreign markets as well  will certainly have an edge over companies sticking to traditional/conservative ways of doing business facing risks to arise from fluctuations in the economy such as instable position of TL against US dollar and other currencies.





Web
Analytics Made Easy - StatCounter



Pin It