Railway Transport weak in Turkey

International Transport and Logistics Service Providers Association UTIKAD Board members met with press members on Tuesday, February 6, 2018. At the press conference held at InterContinental Istanbul Hotel, UTIKAD Chairman Emre Eldener shared important agenda items regarding the Turkish logistics industry with the press members.

Turkey's foreign trade for the evaluation, the President began his presentation with Emre UTIKAD Eldener, evaluated Turkey's economy in light of international indices and logistics industry. Eldener further Turkey's economic and trade objectives, developments in the sector in 2017 and UTIKAD's initiatives with the expectation that the logistics sector in 2018 also shared.

UTIKAD, the International Transport and Logistics Service Providers Association, expressed its 2017 assessment of the logistics sector and its expectations for 2018 at the press conference. UTIKAD Executive Board members met with press members at the InterContinental Hotel on Tuesday, February 6th. At the press conference with breakfast, UTIKAD Chairman Emre Eldener made a detailed presentation on the state of the industry.

Stating that the global size of the logistics sector is approximately 7,5 trillion dollars, UTİKAD Chairman of the Board Emre Eldener; “In 2023, the size of the global logistics industry is expected to exceed 15 trillion USD. The size of the logistics sector in our country corresponds to 300 billion TL and constitutes approximately 12% of GDP. "Approximately 50% of the activities in the logistics sector are carried out directly by logistics companies, while the other 50% are carried out by industrial and commercial companies themselves."

Stating that it is not possible to evaluate the logistics sector independently from foreign trade, UTIKAD President Eldener said, “When we examine the distribution of foreign trade according to transportation modes on the basis of value, we see that 62 percent of the transportation is done by sea, 23 percent by road and 14 percent by air. Rail transport, whose importance we have stated at every point, unfortunately only has a rate of 1 percent. When we examine these ratios on the basis of weight, the table does not show a big difference. We observe that while seaway takes the first place with a rate of 88 percent, road transport has a share of 10 percent, airline and railways have a share of only 1 percent ”.

PUBLIC INTERVENTION IS INCREASING THE COMPETITIVE STRUCTURE BY THE GLOBAL COMPETITIVENESS INDEX

Eldener underlined that while making the 2017 assessment of the logistics industry, they also take international indices into consideration; "According to the Global Competitiveness Index prepared by the World Economic Forum # 137 among 2016 countries in the 2017-55 year, while Turkey; It rose to 2017rd place in 2018-53. However, it could not return to the 2013th place it was in 2014-45. Global Competitiveness Index Report, says for Turkey; 'It should strengthen its institutional structure, facilitate entry into the labor market, and ensure the efficiency and stability of financial markets.' In addition, in the study, instability in administrative policies, access to finance, uneducated workforce and foreign exchange policies were stated as factors that negatively affect the business environment. Referring to this table of free market conditions in competitiveness and prevents the application of public intervention in Turkey's suppose to say that it undermines the competitiveness in the global arena is not wrong, "he said.

FOREIGN CAPITAL

Referring to the Economic Freedom Index prepared by The Heritage Foundation and The Wall Street Journal, UTIKAD President; “The study prepared within the framework of 4 main criteria with the data obtained from organizations such as the World Bank and IMF makes us smile a little bit. Because, in this index, which we ranked 2016th as a result of the events in 79, we have risen to the 2017th place among 170 countries in 60. However, according to the 2017 Index of Economic Freedom Report in Turkey; There are serious barriers restricting entrepreneurship, prices are set by the state for various services and products, and the inflexibility of the labor market prevents the emergence of a dynamic economy. We have highlighted this issue in all our statements regarding the ceiling price on the waybill in recent months. Sanctions that prevent entrepreneurship, such as public intervention in the free market dynamics and high document fees, threaten to spoil the investment environment and leak domestic and foreign capital abroad, and our place in the index will fall ”.

HIGH SATISFACTION FROM TIO ACCORDING TO LPI DOMESTIC SCORING

Touching on Turkey's position in the Logistics Performance Index UTIKAD President Eldener In his presentation, "known by the public from the World Bank's Logistics Performance Index. The results of this study carried out in 2 years are of great importance for our industry. In this index, where we ranked 2012th in 27, unfortunately we dropped to the 2016th place in 34. When the 'Domestic Performance' section of this index is examined, striking results emerge. According to the result of the domestic evaluation study, there is 64% satisfaction with the "Transport Organizers". Despite this, the organizers of the transportation business, which received a very high 64% and high rating in terms of service adequacy and quality in the domestic scoring of the Logistics Performance Index, are forced to be restricted by a new regulation and to pay high document fees ”.

DOING BUSINESS REPORT IS NOT ACCURATE TO THE RIGHT DATA

In the rest of his speech, Eldener made statements about the Doing Business Report of the World Bank and said, “The Doing Business: Trading Across Borders study prepared by the World Bank measures time and costs in imports and exports under certain scenarios. As UTIKAD, we also examined the report prepared with the survey method. As a result, we found very serious mistakes. While preparing the report, 3 different processes are examined. These are the document adjustment process, customs services and internal transport. However, we saw in our reviews; documents and transactions inconsistent with import and export scenarios have been identified for Turkey is included in the report. In addition, the waybill prices and transaction times in the report do not represent market averages and conditions. However, there is not a single Logistics or Transport Affairs Organizer company in the list of those who consented to the disclosure of their names by contributing to the survey ”. Eldener also emphasized that legislative regulations and tariff restrictions were made in our country based on reports that were not prepared on the basis of correct data. “UTIKAD is working in cooperation with World Bank, TOBB and YOIKK to ensure that Doing Business survey results include accurate data. We also met with our Deputy Prime Minister, Mr. Recep Akdağ, and conveyed our evaluations to them. "

THE REGULATORY REGULATIONS SECTOR MUST BE SUPPORTING

Entering between Turkey's 2023 world's 10 largest economies among the targets, exports of $ 500 billion to reach and the trade volume of $ 1 trillion to rise with per capita Eldener reminiscent located in the national income of 25 thousand dollars by the target, "to get close to Turkey's 2023 targets logistics activities need to be strengthened. For this purpose; It is necessary to establish coordination, cooperation and common understanding between the sector and the public administration in order to determine the needs of the logistics sector correctly and to meet the needs. At the same time, it is of great importance that legislative arrangements are made to support and strengthen sector activities. "Tariff restrictions, public intervention and costly document fee approaches that will disrupt the working peace and investment environment of the sector and prevent entrepreneurship should be abandoned."

WHAT IS WAITING THE LOGISTICS SECTOR IN 2018 YEAR?

Stating that it is promising to allocate 2018 billion TL of the 88.1 billion TL public investment budget to the Transportation Sector according to the 21.4 Investment Program, UTIKAD President Emre Eldener said, “Public investments are required for the fulfillment of infrastructure services. However, infrastructure services must be completed quickly in order to get larger shares from 'One Belt, One Road' and other transportation corridor projects. Unfortunately, we do not have an uninterrupted railway line on the east-west and north-south lines. The lack of railway connections in most of our ports causes transit freight traffic to pass through our country to shift to alternative routes. "Logistics centers are not planned to facilitate load integration between modes."

Ener Transit loads need to be transported in more competitive conditions from neighboring countries, it said Eldener. Im The inter-mode balance in transport to the countries in the region is deteriorating in favor of the highway. Intermodal transportation should be encouraged by shifting the weight on the highway as a priority. Yol

Eldener ended his words as follows: “Administrative decisions concerning the sector should be taken together with the stakeholders of the sector. Based on studies such as the Doing Business Report, which are obviously wrong, the decisions that damage the free competition environment will disrupt the domestic market dynamics and will not encourage foreign investors. It is desired to reorganize the profession of Transport Affairs Organization, whose framework has already been determined by laws. The regulations brought by the Regulation on the Transport Affairs Organization are incompatible with the dynamics of the logistics sector and the entrance to the sector is made difficult with high document fees. Within the framework of all these developments, as UTIKAD, we continue our work intensely as we have been for 31 years. We hope that steps will be taken to ensure the development of our industry in 2018. I think we will spend a year in which the industry will produce more permanent solutions with its own components, not just rising in the indexes. ”

After the President Elden's presentation, the question and answer section started. UTIKAD Chairman Eldener, Members of the Board of Directors and General Manager Cavit Uğur answered the questions of press members.

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