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Turkey and China
&
A Simple Economical SolutionArif DAVRAN
UTIKAD
Consultant to the Board
Head of Sea Committee
BISLOGISTICS
Manager
October 20, 2009
WELCOME
October 20, 2009 2
I am here representing UTIKAD
Freight forwarders and Logistics Providers Association in Turkey.– Member of FIATA
– Member of CLECAT (Non voting)
– 340 Members
We are the traders of Transport Sector.
This meeting is held on Bosporus at the Turkish Chamber of Shipping building and I will start my presentation with the G-20’s newly made Istanbul decisions.
October 20, 2009 3
Istanbul Decisions and IMF
At IMF internet page you find below three
main statements:
– IMF head says world must cooperate even
more to build post-crisis world
– Underscores Fund's role in global economic
cooperation, recovery
– Welcomes "Istanbul Decisions" to guide IMF
over coming year.
October 20, 2009 4
Let’s Look to the Meaning
IMF Statements
– The new trend “Global world” is like a monster and
asking always for more cooperation. What is this IMF
suggested “cooperation” and do we need?
How and who has brought us to this crisis?
– IMF was active and watching the increase and growth
– Western Governments were united and happy to see
that everybody had good earnings until the banks
were no more capable of generating new money.
October 20, 2009 5
New Radical Decisions are Needed
IMF policies and G-20 countries are trying to bring the world to the post crisis situation.
This means that there is no improvement and nothing new. It is only waste of time.
The Global world is in need of correct marketing and targeted quick investments, money spending and fast movement of the goods.
Leave the Monetary System Corrections to IMF and start planning the real outcome.
First we have to stop the unemployment.
October 20, 2009 6
Unhappiness
Having a work has become a privilege.
Not only the jobless, but everybody is becoming unhappy.
This effects even those who have a job and good earnings. They stop their spending and become afraid of loosing their positions.
For a better trade the unemployment problem must be solved.
October 20, 2009 7
Less Working Hours More Workers
Instead of 8 hour shifts 4 hour shifts
After 4 hours work each additional 2 hours
is to be paid much higher to the worker
and also more tax and top social security
costs must be considered at the company.
Instead 8 hours, 4 hours work means half
the salary and immediately double jobs.
This not easy, but it is a fast solution.
October 20, 2009 8
= 8
=
=
4
4++
= $100
$50
$50=
=
TODAY
TOMORROW
October 20, 2009 9
More to Sell
Since Henry Ford and his T model car we
all know, automated and big number
production will reduce the costs.
China like the rest of the world with its
huge population has difficulty and high
costs for creating new jobs. On the other
side without a production increase you
can’t cut down the costs.
October 20, 2009 10
China, Korea and Japanese
ComparisonBoth are very different, but when we look at the
historical Japanese spending measures you see
they had similar problems like China.
– Through large export volumes big currency stocks.
Through higher income the Japanese were asked to spend
abroad at luxury items. “Louis Vuitton bag”
Japanese were also importing all raw materials and energy.
They started to invest for big factories abroad and send their
skilled work teams to other countries.
– The remaining funds for Research and Development
and infrastructure investments in Japan and Korea.
October 20, 2009 11
To Sell & Distribute More You have
to come and invest in Turkey
Today Logistics is the correct investment target for China.
China must take its part at the beginning of the expansion.
With some subsidies the Chinese “A” certified forwarding companies must expand their business to Turkey.
– Partnerships
– Investments
October 20, 2009 12
Investing in Other Countries
Japanese did this with their factories. Toyota, Sony, etc. invested in other buyer countries.
Our UTIKAD view is this is partly correct, but it did not fully help the Japanese economy.
For China today such investments and partnerships should be done for logistics purposes.
October 20, 2009 13
Logistical Solution
To produce more brings the problem of stock
costs. To avoid you need a good distribution.
Don’t wait for the Buyer’s action, send your
marketing team and start selling.
The planning of the more and distribution of
them needs a very good calculation.
To make this selection please take the world and
look at China’s and Turkey’s location. Start
looking mainland parts with sea connection.
October 20, 2009 14
Turkey’s Location
The position is like a berth for China.
Turkey’s Geographical Strength can be used for the distribution of Chinese products to – Europe
– Russia
– Arabic Countries
– West African and
– CIS Countries
October 20, 2009 15
Regional Freight Flow
12 to 14
days NY
5 to 9
days EU
October 20, 2009 16
Turkey’s Power Points
Strong Banks even in this world crisis.
Good Information connections– G3
– Phone
– Internet
Good Road Connections– TEM, E5 to Europe
– Expanding Rail connections
– Over 45.000 truck/trailers.
– 17.000 km 2+2 Roads
Great Sea Connections– Located at one of the three
openings of the Mediterranean.
– Mersin, Izmir, Kumport and many other ports
Warehouses– Bonded and Non-bonded
A young 70 m population
Stable currency
Electronically Customs and fast services
October 20, 2009 17
Short Sea Shipping
Last several years Turkey made great
improvement.
White flagged Turkish liner container
vessels are calling Mediterranean, Black
Sea and Eastern US ports.
Through these lines EU’s SSS policy is
coming to life.
Most of the vessels are under 3 years.
October 20, 2009 19
Competition is Already Here
– Big logistic companies are themselves or in
partnership in Turkey
– There are still a lot of Turkish companies for
partnership.
– Especially the new land transport activities
require a relative high 5 year license payment.
Similar to the “A” in China, but this can be
achieved cheaper through partnership, or
investment.
October 20, 2009 20
Asyaport One HUB Example
Construction has started in Barbaros, Tekirdağ.
A new logistical village in Çorlu is planned.
In December 2009 Asyaport will be rail connected.
Çorlu is the 3rd Istanbul airport
October 20, 2009 21
Today & Future Istanbul Ports
0
1000
2000
3000
4000
5000
6000
7000
8000
Capacity Realized
2006
Expected
2023
Ambarlı
Haydarpaşa
Tekirdağ
Asyaport
Gümüşyaka
tons
October 20, 2009 22
Mersin Port
Investments in regard of a logistical village
are also at the stage of beginning.
With its so close location to the Middle
East countries it is also a very important
logistical point.
To Adana Şakirpaşa airport there is also a
new airport for Mersin is planned.
October 20, 2009 23
AIR CONNECTION STRENGTH
Turkish Airlines and private airlines are
making huge investments.
This gives the possibility of reaching many
destinations for quick cargoes by air.
For the Marketing People, the daily many
direct flight connections gives Turkey an
additional importance.
October 20, 2009 24
Through Logistical Cooperation
Chinese and Turkish marketing people can sell your products to the neighboring countries together.
You can send 10 – 15 countries goods in one lot to Turkey. Cheaper transportation!
You can reach customers in 5-12 days from Warehouses in Turkey by truck, train and sea.
According final delivery location you can put stickers, user’s manuals, or make packing changes in Turkish warehouses.
Quick deliveries and good service will bring improvement and success to the sales.
October 20, 2009 25
WIN WIN
Your logistical Partnerships and Investments in
Turkey will not be huge in amounts, but they will
have much bigger impact on the sale and
distribution of Chinese products.
Turkey and China can make a big step forward
and UTIKAD is ready to arrange the necessary
meetings.
Even a 3,000 mile journey starts with the first
step. Start today!
October 20, 2009 26
THANK YOU FOR LISTENING
Our UTIKAD
registered phrase is
on the left side
We are stretching our
hand and waiting for
your hand as we do in
our logistical and
forwarding activities.
www.utikad.org.trArif DAVRAN
