Discover the strategic strengths of Turkish logistics for your supply chain! Turkey is an attractive hub for international companies looking for logistics solutions.
25th World Goal: The Success of Turkish Logistics
The Turkish logistics sector ranks 11th among the top 50 emerging economies with 2.5% of global logistics exports (2023), representing a $100 billion market, and is growing exponentially. According to the World Bank’s Logistics Performance Index, Turkey has progressed from 47th in 2018 to 38th in 2023. Turkey aims to increase its infrastructure investments in the transport and logistics sectors in order to strengthen and expand its current position in world trade.
Between 2003 and 2022, Turkey invested a total of $250 billion in the transport and logistics subsectors. Of this substantial investment, the share specifically allocated to railway investments was between 2% and 49% of the total volume allotted to logistics and transport. This substantial funding underlines Turkey’s commitment to developing its infrastructure and improving connectivity across the country. Turkish logistics
Consequently, the deployment of the rail network is a strategic pillar of Turkey’s broader objective of encouraging economic growth and facilitating the free movement of goods and people, all in an effective manner. By 2035, the total cargo tonnage in Turkey is expected to reach 1.5 billion tonnes, demonstrating the expected impact of these major investments on the country’s logistics capacity. Turkish logistics
The Turkish Ministry of Transport is working to boost exports and foreign trade by exploiting the country’s geographical advantages. The goal is to reach the 25th world ranking by 2028, in line with the 12th development plan. Turkish logistics
The logistics sector is part of the YLDA project proposed by the Ministry of Transport, project created to strengthen logistics networks, key elements of the supply chain. In 2023, the department allocated approximately $12 million to support the sector. Turkish logistics
Integration of value chains and technological innovation
The harmonious integration of value chains and the rapid adoption of technological innovations are the characteristics of Turkish logistics. Indeed, the Turkish logistics sector integrates technological advances into its working method in order to systematize and automate all its operations in the primary interest of improving efficiency. The integration of digital technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT) is revolutionizing logistics operations.
Turkish logistics
- The solutions offered by AI optimize route quality, stock management and demand anticipation, enabling Turkish logistics companies to make data-based decisions.
- Blockchain increases the security and transparency of supply chain transactions, minimizing the risk of fraud and ensuring data integrity.
- IoT applications create value by combining data from many sensors and making individual sensors accessible. IoT technologies are used to track and follow-up on shipment in real time, generating valuable information on the condition and exact location of goods. To learn more about what IoT is, click here. Turkish logistics
The quality of Turkish Logistics
Turkey offers high-quality logistics services due to its strategic location, efficient infrastructure and substantial investments in transport networks. The import and export of goods to and from Turkey will benefit the international company’s supply chain. Indeed, the country’s extensive network of infrastructures, such as ports, railways, highways and airports, facilitates efficient and reliable operation throughout the supply chain. Turkish logistics
Turkey: Strong Link of Global Value Chains
The country has significantly increased its investment in transport infrastructure, including roads, railways, maritime ports and airports. Projects such as the Eurasia Tunnel, the Yavuz Sultan Selim Bridge and the new Istanbul airport illustrate these efforts and strengthen Turkey’s capacity to manage large volumes of international trade. The main commercial routes run through Turkey, making the country an attractive and natural logistics hub. Turkish logistics
Istanbul Airport boosts air freight in Turkey
In April 2024, air freight traffic at Istanbul Airport increased by 174 per cent compared to the previous year, with 590 448 tonnes transported. This impressive figure represents 93.9% of Turkey’s total freight volume. The information thus confirms the key and decisive role of the city of Istanbul in the logistics and air transport sectors of the country. With regard to air freight trends in other cities in Turkey, there have been some slight increases, such as in Tekirdağ – Turkey’s region west of Istanbul – and in Batman, in the south-east of the country. However, most other airports have seen their freight volumes decrease. Turkish logistics
Danish Investment in the Logistics Sector in Turkey
Danish shipping and logistics company DFDS will buy Turkish international transport network company Ekol Logistics for $277 million. This investment made in April 2024 justifies Turkey’s exponential role as a logistics hub and production lungs for Europe. The acquisition will add road transport to its Mediterranean ferry network linking Turkey and Europe. The acquisition, which will integrate Ekol’s road transport capabilities into DFDS’s Mediterranean ferry network, is expected to improve connectivity and efficiency across Europe. The transport market between Turkey and the European Union is expected to grow by 14% annually over the next 4 years. It is all the profitable potential of the sector that is highlighted in this deal, which, however, remains subject to the approval of the European Union, after that of the Turkish competition authority in July 2023, and is expected to be finalized at the beginning of the fourth quarter of this year 2024.
The large number of companies demonstrates the importance of technological integration, customer service and tailor-made solutions in the logistics sector in Turkey. The presence of global players and detailed evaluation platforms indicates that the logistics market is competitive and well developed in the country. Turkish logistics
Major Players in the Turkish Logistics and Transport Market:
- Amazon
- Aility
- Arkas
- Borusan
- Ceva Logistics
- DHL
- FedEx
- Maersk
- etc.
In addition to national financial support, incentives are being put in place for favourable taxation for foreign investors. The entire logistics industry will be affected.
Conclusion
The future of the Turkish logistics sector is encouraging, with continued investment in structures, technological innovations and strategic initiatives. The country’s determination to become a logistics hub is realized through the implementation of ambitious projects and innovative policies aimed at improving global connectivity and efficiency. Turkish logistics
By continuing to strengthen its position in the global logistics sector, Turkey is in a position to attract more and more international investment and partnerships. The combination of strategic geographical location, modern infrastructure and technical innovation makes Turkey an excellent destination for international companies looking for efficient and sustainable logistics solutions.
In conclusion, the Turkish logistics sector is a dynamic and evolving industry that offers many opportunities for growth and development. Due to its strategic advantages and commitment to innovation, Turkey will remain a key player in the entire international logistics landscape, promoting development and intercontinental connectivity. Turkish logistics can really boost your exports! Turkish logistics
So, jump into the wagon of logistical investment in Turkey! Don’t miss this ongoing train; the future awaits you in Turkey! To accompany you in this adventure, ERAI Turkey is the ideal solution partner! Turkish logistics
Source: Invest in Turkey
