It is Possible to Increase Steel Exports by Railroad

All countries of the world are trying alternative ways to expand their export markets and increase their share in global trade. Especially European countries have been expanding their railway network, which provides advantages in transportation recently. In order for Turkey to be able to send its products to many parts of the world, it needs to focus on railways that combine many advantages such as safety, time and cost. Steel industry representatives, which have been increasing their exports to Far Eastern countries in the recent period, support investments to be made in this field.

Rail transport is particularly attractive to industrialists because it is safe, suitable for heavy cargo transport, fixed transit time, affordable cost and not affected by weather conditions. However, transportation to every region in our country cannot be provided by the railway network, and this road alone is not possible. Intermediate transfers are required by road. The rapidly advancing transportation sector needs to expand its railway network as well as land, air and sea routes. Turkish steel industry representatives, which have attracted attention with their exports to Far East countries, want to use the railway and take advantage of the advantages it offers. The sector expects to increase investments in this field and expand the network. Thus, he underlines that there will be significant increases in exports to be made by small and medium-sized enterprises, as well as large companies. He states that the creation of such an opportunity will provide great benefits to all sectors other than the steel sector.

Stating that Turkey should act with new targets in order to increase its competitiveness in exports, Steel Exporters' Association Supervisory Board Member Mehmet Eyüboğlu said, “Until now, Africa, Europe and the USA were determined as the target market while exporting. These geographies are indispensable markets for Turkey. However, we must be able to develop different systems so that we can export to every corner of the world. Today, British products exported from England to China are transported by a 17-day "Freight Train" transportation, while the usual sea and air cargo services are available. Now, countries are trying to optimize the commercial conditions by alternative means. As a developing country, we need to seriously consider and evaluate it, and go beyond classical export plans. It is high time that we, as a country, should follow all export factors, not only goods and price factors, but also logistics, even if it is boutique, spot and seasonal, within a program.”

Explaining that it is now a necessity to work on alternative logistics opportunities and develop logistics solutions in order to increase the export from Turkey to China both in terms of cost and to create a product variety, Mehmet Eyüboğlu said, “After the flights launched by Turkish Airlines to various countries of the world, the relevant Our exports to countries have increased. We see that the Republic of Turkey State Railways (TCDD) has a great potential to carry cargo in our country.

We have no doubt that it can have a significant market share, especially in China, which is spread over a large geography, and in other countries that are far from maritime transport, and that Turkish exporters can pave the way for Chinese and other countries' markets above the expectations. Of course, the logistics infrastructure installation of TCDD in the Central Asian Turkic Republics, which we are sure to be able to establish the logistics infrastructure for the supply of goods, will of course be handled much easier. Thus, it will be ensured that exports are carried out intensively by small and medium-sized enterprises as well as large Turkish exporting companies.”