GENEL TRANSPORT TURKEY Transport and Trade September 2002 – Istanbul, Turkey TURKEY JUST FOR THE START Location: Southeastern Europe and Southwestern Asia bordering the Black Sea, the Aegean Sea and the Mediterranean Sea • Parliamentary Rebuplic • Area About The Size of Texas • 7,200 km Coastline • 2,627 km Land Boundary • 69 Million People TURKEY GEO-ECONOMICAL ‘East Meets West’ Gateway from/to • Europe • C.I.S. • Black Sea • East Mediterrenean • Gulf TURKEY GEO-ECONOMICAL Among World’s 10 Big Emerging Markets Growth Sectors • Energy • Telecommunications • Transport • IT • Textiles • Automotive • Iron & Steel • Defense • Tourism • Environment 60% of the Population is below the Age of 30 TURKEY GEO-ECONOMICAL Close Integration With International Community Memberships • UN • NATO • European Council • OECD • IMF • World Bank • GATT • EFTA • Black Sea E.C. Zone • EU Customs Union TURKEY EU Customs Union In Power Since 1996 Turkey Fully Adopted EU Policies • Trade Regime • Legislative • Common External Tarif vis-a-vis 3rd Countries Trade Volume • Imports Increased by 40 % in the First Year of the Union • Today the Volume is about 40 Billion USD per Year TURKEY ECONOMY Turkey’s Total Exports in Years Turkish Exports in Million US$ 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 1996 1997 1998 1999 2000 2001 TURKEY ECONOMY Turkey’s Total Imports in Years Turkish Imports in Million US$ 60000 50000 40000 30000 20000 10000 0 1996 1997 1998 1999 2000 2001 TURKEY ECONOMY Turkey’s Total Foreign Trade in Years Turkish Total Foreign Trade in Million US$ 90000 80000 70000 60000 50000 40000 30000 20000 10000 0 1996 1997 1998 1999 2000 2001 TURKEY First 10 Export Countries of Turkey • • • • • • • • • • GERMANY USA UNITED KINGDOM ITALY FRANCE THE NETHERLANDS SPAIN RUSSIA ISRAEL BELGIUM-LUXEMBOURG 18,7 % 11,6 % 7,4 % 6,4 % 6,0 % 3,2 % 2,6 % 2,3 % 2,3 % 2,3 % TURKEY First 10 Import Countries of Turkey • • • • • • • • • • GERMANY ITALY USA RUSSIA FRANCE UNITED KINGDOM JAPAN BELGIUM-LUXEMBOURG SPAIN THE NETHERLANDS 13,1 % 7,8 % 7,2 % 6,9 % 6,6 % 5,0 % 3,1 % 3,1 % 3,0 % 2,9 % TURKEY FREE ZONES IN TURKEY Becoming Popular & Effective TURKISH FREE ZONES Free Zones Law numbered 3218 was issued in 1985 TURKEY FREE ZONES IN TURKEY All Kinds of Activities Main Activities • Manufacturing • Storing • Packing • General Trading • Banking and Insurance TURKEY FREE ZONES IN TURKEY Basics • Turkish Free Zones are tax free zones • Sales into the domestic market are allowed => In contrast to most Free Zones in the world • They are adjacent to the major Turkish Ports on the Mediterranean, Aegean and Black Seas => Easy access to international airports and highways • No procedural restrictions regarding price, standards or quality of goods • Earnings and revenues are tax free and transferable • No restrictions on foreign firms operations. => Indeed the operator of Izmir FZ is an American firm. TURKEY Free Zones in TURKEY ANNUAL TRADE VOLUME OF FREE ZONES (US$ 1000) ZONES 1998 1999 ADANA-YUMURTALIK ANTALYA 168.084 EUROPE 2000 2001 2.202 60.864 59.267 176.153 215.132 185.019 12.834 105.655 212.865 BURSA EAST ANATOLIA AEGEAN 82.294 476 614 1.789 1.881 1.446.380 1.188.896 1.662.598 1.291.910 15.750 35.671 54.355 GAZIANTEP ISTANBUL ATATURK AIRPORT 1.778.062 2.196.891 2.893.199 2.193.739 ISTANBUL LEATHER & IND. 2.354.483 2.486.357 4.059.383 2.324.919 19.769 72.784 181.535 237.939 178.578 180.678 240.262 251.479 656 22.554 27.071 ISTANBUL THRACE IZMIR MENEMEN LEATHER KAYSERI MARDIN 13.698 5.270 5.522 5.284 MERSIN 1.697.068 1.504.442 1.767.854 1.337.790 RIZE 1.726 11.987 15.816 16.447 SAMSUN 1.958 4.384 16.845 12.329 TRABZON 57.482 26.662 15.914 36.661 TOTAL 7.717.764 7.886.562 11.300.593 8.331.246 TURKEY Free Zones in TURKEY BREAKDOWN OF THE TRADE VOLUME BY COUNTRIES (US$ 1000) 2002 January-June Countries I. OECD COUNTRIES Inflow to Zones % Outflow from Zones % % Total 1.105.927 49,7 596.963 23,7 1.702.890 35,9 A.EU COUNTRIES 833.706 37,5 526.857 20,9 1.360.563 28,7 B. OTHER OECD COUNTRIES 272.221 12,2 70.106 2,8 342.327 7,2 II. OTHER EUROPEAN COUNTRIES 17.142 0,8 32.844 1,3 49.986 1,1 III.TURKIC REPUBLICS 75.147 3,4 44.347 1,8 119.494 2,5 IV.FORMER USSR 54.864 2,5 48.118 1,9 102.982 2,2 V.ISLAMIC COUNTRIES 72.267 3,2 124.897 5,0 197.164 4,2 VI.OTHER COUNTRIES 232.968 10,5 78.591 3,1 311.559 6,6 VII.TURKEY 666.373 30,0 1.596.636 63,3 2.263.009 47,7 2.224.688 100 2.522.397 100 4.747.085 100 TOTAL TURKEY Foreign Investment in TURKEY • The Turkish Goverment considers foreign capital as an essential tool in economic development • The foreign investment legislation provide: a secure environment through bi/multileteral agreements, transfer of profits, fees and royalties, the repetriation of capital. TURKEY Foreign Investment in TURKEY • Cumulative foreign capital between 1954-1980 was only 280 million US $ • At the end of 2001 foreign investment the amount has reached to 29,2 billion US $ • There are over 5456 enterprises with foreign partnership in operation in various sectors • Leading investors are France, USA, Netherlands, Germany, Switzerland, UK, Italy and Japan TURKEY Foreign Investment in TURKEY Figures of 2000 • 61.4 % of Foreign Investment were in Services, • 36.4 % in Manufacturing, • 2.2 % in Mining and Agriculture. Sub-sectors with the greatest amount of authorized foreign investment include • Banking (13.9 %); • Trade (8.1 %); • Food, Beverage and Tobacco Processing (6.5 %); • Chemicals (6 %); • Electronics and Electrical Machinery (3.5 %). TURKEY Foreign Investment in TURKEY Cumulative Foreign Investment Permissions • • • • • • • • • • • • • Country France Netherlands Germany United States United Kingdom Switzerland Italy Japan Belgium Saudi Arabia Others Total Value ($mil.) Share 5,419.3 18.6 3,967.3 13.6 3,697.3 12.6 3,347.5 11.5 2,055.8 7.0 2,030.4 6.9 1,882.7 6.6 1,507.3 5.2 377.7 1.3 298.7 1.0 4,638.0 15.9 29,224.4 100.0 TURKEY Foreign Investment in TURKEY Cumulative Foreign Investment Permissions France Netherlands Germany United States United Kingdom Switzerland Italy Japan Belgium Saudi Arabia Others TURKEY Banking in TURKEY • Turkish finance is principally founded upon a universal banking system following EU practices on capital adequacy • Number of banks operating in Turkey increased to 75 • The banking system has undergone a rapid technological transformation in the past decade • Automatic Telling Machines (ATMs), Point of Scale (POS) terminals and Internet Banking are part of everyday business • At the end of 1998, 7,471 ATMs and 107,335 machines were installed • Moreover, nearly 19.3 million bank cards have been issued • All major banks offer Internet Banking Services for corporate users and individuals TURKEY Banking in Turkey Foreign Exchange Controls • There are no known foreign-exchange limits placed on importers by the government. • There are no restrictions on the transfer of funds in or out of the country. • Turkish Lira (TL) is fully convertible. • Most international transactions are, however, denominated in U.S. dollars or German marks due to these currencies‘ universal acceptance and the continuing monetary uncertainty caused by Turkey's high inflation rate. • Banks are allowed to deal in foreign exchange and to borrow and lend in foreign currencies. • Foreign exchange is freely traded and widely available. TURKEY LOGISTICS Forwarders Profile Data of UTIKAD Turkish Freight Forwarders’ Association • 186 Companies / 228 Offices • 10.000 Employees • 30 Bonded Warehouses • 150.000 sqm Bonded Area • 7 Billion Tonnes Cargo Yearly Forwarded (30% of Total Moved) TURKEY TRANSPORT SECTOR Logistics Multi-Nationals in Turkey • • • • • • • DANZAS SCHENKER KUHNE & NAGEL PANALPINA FRANS MAAS CIRCLE EXEL • • • • EXPEDITORS MILITZER & MUNCH HAMANN HELLMANN MAERSK LOGISTICS TURKEY TRUCKING Biggest Fleet in Europe Customs Borders • 2 to Bulgaria • 2 to Greece • 3 to Georgia • 2 to Armenia (n.act.) • 22.000+ Vehicles • Member of IRU • CMR Party • 3 to Iran • 2 to Iraq • 2 to Syria TURKEY SEAFREIGHT A Sea Trade Country • 7.200 km Coastline • 12 ports at Black Sea • 32 ports at Marmara Sea • 72% of Exports • 36 ports at Izmit Ind. Zone • 14 ports at Agean Sea • 14 ports at Mediterrenean • 95% of Imports TURKEY SEAFREIGHT Shipping Lines Calling Istanbul Ports EUROPEAN SIDE ADMIRAL AMERICANASHIP BCL CONTSHIP COSCO CTE DELMAS LINE EL KENZ EMES GRIMALDI HANJIN SHIPPING LINE HAPAG-LLOYD ITALIAN LINE K LINE LYKES MAERSK-SEALAND MCL MEDEX ASIAN SIDE MSC NORASIA NORMED OTAL LINE SARLIS SENATOR SUDCARGOS TARROS LINE TM LINES TMM TURKON UASC YANG MING LINE AMERICANASHIP ARMADA BORCHARD BULCON CANMAR CMA CONTAZ CONTSHIP CTE DELMAS LINE ELLERMAN EMES GRACECHURCH HAMBURG SÜD HAPAG-LLOYD ITALIAN LINE MAERSK-SEALAND MCL MEDEX MISK NORASIA OOCL P&O NEDLLOYD SARLIS SENATOR UASC YANG MING LINE ZIM TURKEY SEAFREIGHT A Turkish Line Calling US Ports • • • • • 100% Turkish Private Capital Established in 1997 as First Private Turkish Liner Operator 5 x 1145 TEU Capacity Container Carriers Departs from ISTANBUL / GEMLIK / IZMIR Route 1: GENOA / MARSEILLE / BARCELONA / NEW YORK / NORFOLK / CHARLESTON / LISBON / BARCELONA / MARSEILLE / GENOA / ISTANBUL • Route 2: MERSIN / ASHDOD / HAIFA / ALEXANDRIA / ISTANBUL • Fastest Service to US • Biggest Market Share at TR-US Inbound/Outbound Container Traffic by 30% • Own Vessels Built at Own Shipyard • 60.000 TEU Handled in 2001 TURKEY SEAFREIGHT Container Handling At State Railway Ports CONT. LOADING 20' UNLOADING 40' 20' 40' YEARS FULL EMPTY FULL EMPTY FULL EMPTY FULL EMPTY 1999 158545 28122 125558 27460 100480 77194 108216 42679 2000 154554 35482 128935 43867 113896 72955 138788 36632 Importance of Agean and Mediterrenean Ports CONT. LOADING 20' UNLOADING 40' 20' 40' 2000 FULL EMPTY FULL EMPTY FULL EMPTY FULL EMPTY IZMIR 61% 15% 49% 18% 26% 80% 31% 76% MERSIN 21% 29% 27% 40% 31% 15% 34% 17% TURKEY SEAFREIGHT RO-RO Transportation Became Necessary During The Balkan War To Maintain Truck Traffic To/From Europe via Italy A Cost Effective Multimodal Solution Routes • For Truck Ops + Clients • Less Customs Passages • No Transhipment(s) • Istanbul – Trieste (I) • Cesme – Trieste (I) • Samsun – Novorossiysk (RUS) • Zonguldak – Evpatoria (UKR) TURKEY IMPORTANCE OF EU-INTEGRATION Total Export & Import Sea Cargo Loads* SEA CARGO EXPORTS EXPORTS IMPORTS IMPORTS in Million Tonnes 1999 2000 1999 2000 USA / Canada/Mexico 1,29 2,75 4,23 5,69 16,12 15,96 11,25 14,06 0,01 0,06 2,63 2,19 EU Austr. / NZL / Japan / Korea * Turkish Chamber of Shipping Commerce TURKEY AIRFREIGHT 40 Airports Total / 19 International Istanbul: 3 Airports for Cargo Handling • Ataturk – European Side • Corlu – European Side • S. Gokcen - Asian Side Multimodal: Truck + Air For US/Canada via Greece • Shorter Transit Times Than Containerized Exports • Atractive Cost Reductions for Exporters TURKEY AIRFREIGHT Export ex Istanbul Total Chargable kg % Total Net-Net USD % 1,116,028.6 23.21% $1,995,861.89 30.05% Origin Destination IST ISTANBUL NORTH AMERICA IST ISTANBUL CENTRAL AMERICA 36,903.7 0.77% $86,728.27 1.31% IST ISTANBUL SOUTH AMERICA 38,573.2 0.80% $136,282.48 2.05% IST ISTANBUL EUROPE 2,350,722.6 48.88% $2,901,353.82 43.68% IST ISTANBUL MIDDLE EAST 832,034.9 17.30% $897,003.72 13.51% IST ISTANBUL JAPAN / KOREA 104,413.5 2.17% $206,311.88 3.11% IST ISTANBUL SOUTH EAST ASIA 217,673.6 4.53% $267,852.19 4.03% IST ISTANBUL ASIAN SUB CONTINENT 85,412.0 1.78% $90,977.15 1.37% IST ISTANBUL SOUTH WEST PACIFIC 27,410.1 0.57% $59,576.45 0.90% 4,809,172.2 6,641,947.9 TURKEY AIRFREIGHT Export Total ex Turkey Istanbul 9% 2% Ankara Izmir Total Chargable kg Total Net-Net USD 4,809,172.2 6,641,947.9 IZM IZMIR 449,771.4 693,946.7 ANK ANKARA 118,576.5 182,329.5 5,377,520.1 7,518,224.1 IST ISTANBUL 89% TOTAL TURKEY TURKISH AIRLINES • The State Owned National Carrier • 90 International Destinations • 30 Domestic Destinations Uçak Tipi Adet Koltuk Kapasitesi Toplam Kapasite A-310-300 5 1 (208), 4 (210) 1.048 A-340-300 7 271 1.897 B-737-400 14 150 2.100 B-737-500 2 117 234 B-737-800 26 10 (155), 16 (165) 4.190 RJ-70 3 79 237 RJ-100 7 99 693 TOPLAM 64 10.399 TURKEY AIRFREIGHT A Successful Turkish Carrier • • • • • 100% Turkish Private Capital Established in 1996 5 x Airbus A300 Cargo Aircraft 1 x Airbus A300B4-203 Passenger Aircraft Provides ACMI, Block-Space and Ad-Hoc Charter Contracts to -> Lufthansa, Turkish Airlines, Air France, Cargolux, United Parcel Service, Federal Express and Royal Jordanian Airways • Regular Cargo Flights from ISTANBUL IST to -> LONDON LUTON 4 Flights -> FRANKFURT HAHN 2 Flights -> PARIS CDG 3 Flights • STANDART & POORS - B STABLE CREDIT DEGREE • BEST EUROPEAN CARGO CARRIER IN LAST THREE YEARS GENEL TRANSPORT Who We Are A Group of Companies -> GENEL TRANSPORT Forwarding & NVOCC -> VIKING CARGO IATA Air Cargo Agent -> TET CONSULTING IT Solution Provider GENEL TRANSPORT GENEL TRANSPORT Forwarding & NVOCC • Active In All Aspects of Forwarding Since 1988 • Developes and Refines Services & “Products” • ATLAS Member since 1999 GENEL TRANSPORT VIKING CARGO IATA Air Cargo Agent • Founded in 1999 • Handles Solely Air Cargo (incl. Chartering) • As of Dec. 2001: A TOP 50 IATA Company (out of 130) GENEL TRANSPORT TET CONSULTING IT Solution Provider • Founded in 1996 • Developes & Maintains General IT Frameworks & Logistics Bases • Ranks At No 2 Amongst Best Support IT Companies GENEL TRANSPORT Regular Container Services Weekly Direct LCL Departures ex Turkey • Tunis – Tunisia • Casablanca - Marocco • Alexandria - Egypt • Ashdod - Israel • New York - USA • Worldwide Destinations via • Antwerp/Rotterdam GENEL TRANSPORT Regular Trucking Services Groupage LTL + Multimodal Transhipments Weekly LTL ex Istanbul Weekly LTL to Istanbul Container + Truck • • • • • • • • • • • • Transhipments to C.I.S. Countries Germany France UK Benelux Iran Saudi Arabia Jordan Germany France UK Benelux GENEL TRANSPORT Some Project Shipments GSM Equipment for AZERCELL ex ERICSSON Turkey Ankara – Baku 240 tons in 1998 GSM Equipment for KAZAKHCELL ex ERICSSON Turkey Ankara – Almaty 260 tons in 1999 HUGHES Satellite Communication Equipment for DEXAR USA various – Istanbul 5800 cbm in 2000 NORTHERN TELECOM ISP Equipment for HEXCOM USA various – Istanbul 2350 cbm in 2000 TELECOM ITALIA GSM 1800 Infrastructure Equipment for ISBANK Milan-Istanbul 1280 cbm in 2001 MAZAK CNC Turning Sets for FORM MAKINA Leicester UK-Istanbul 1274 cbm in 2001 GENEL TRANSPORT http://www.geneltransport.com.tr TURKEY SHIPPING INTO TURKEY MASTER AWB / Ocean B/L s/ WCA Freight Forwarder c/ Your Local Agent [GENEL TRANSPORT] HOUSE AWB / Ocean B/L s/ Actual Shipper c/ Actual Consignee or Advising Bank IMPORTANT: • The Weight / Volume and Number of Pieces Mentioned on the Master and the House Must be the Same TURKEY SHIPPING VIA TURKEY MASTER AWB / Ocean B/L s/ WCA Freight Forwarder c/ Your Local Agent [GENEL TRANSPORT] n/ Consignee at Final Destination / 3rd Country HOUSE AWB / Ocean B/L s/ Actual Shipper c/ Actual Consignee or Advising Bank • IMPORTANT: All Shipping Documents Should Have the Remark: “IN TRANSIT VIA TURKEY TO ........... ” TURKEY CUSTOMS CLEARENCE Documents Required From the Overseas Shipper: • • • • • Original Commercial Invoice Packing List Shipping Documents A.TR for the Goods originated from or Pre-cleared at EU EURO 1 (Free trade agreement) Documents Required from the Importer • Power of Attorney • Tax Office Registration Proof • Import License (for certain commodity groups) TURKEY IMPORT/EXPORT Documentation • Turkish documentation procedures follow the European Union system. • A commercial invoice, • a certificate of origin • and a bill of lading ,or airway bill, depending on the method of shipment used, must accompany all commercial shipments. • Import licenses and phytosanitary certificates are necessary for food and agricultural commodity imports. TURKEY IMPORT/EXPORT Documentation • Commercial Invoice: The commercial invoice must be submitted in triplicate, including the original copy; and must contain a complete description of the goods and all required payment terms. • Bill of Lading: Details in the bill of lading should correspond exactly to those given in other shipping documents. TURKEY PROCEDURES HouseHold & Personnel Effects Documents required: - Detailed Packing List - Item by Item Original Invoice for Brandnew Items The Passport of the Owner of the Goods Working and Residence Permit Shipping Documents Power of Attorney from Public Notary TURKEY BUSINESS CUSTOMS Habits • The Turkish people feel close to their traditions and culture. • However, having ties with western countries, Turkish people in major cities have adopted a western way of life. A foreigner visiting any one of the large cities in Turkey will find himself or herself in an atmosphere similar to that of a contemporary western city. • There are no local customs, beyond the bounds of normal courtesy, that a visiting businessman should feel compelled to observe. • In general, a personal relationship is an important basis for a successful business relationship in Turkey. It is usually important to allow time for friendly conversation before commencing with a business agenda. • Business cards are almost always exchanged, and visitors are usually offered a glass of tea or a cup of Turkish coffee. GENEL TRANSPORT TURKEY Country Presentation THANKS FOR YOUR ATTENTION September 2002 – Istanbul, Turkey