Strategic importance of Turkish ports in global trade

Türkiye, strategically located at the crossroads of Europe, Asia, and Africa, plays a crucial role in global trade logistics, and its ports are at the heart of this activity. The country’s unique geographical position makes its ports essential for international trade, particularly in the context of recent global maritime challenges.

The adversities in the Red Sea region have highlighted the importance of Turkish ports in maintaining the flow of maritime trade. According to Erdem Sözvar, chief operating officer at Dinçer Logistics, the incidents in the Red Sea have brought new challenges to global supply chains, with about 12% of world trade and 30% of sea trade between Europe and Asia passing through this critical region [1]. As a result, many service providers have opted to reroute their voyages via South Africa, leading to minimum one-week delays and increased costs. This scenario has underscored the strategic value of Turkish ports as alternative routes to mitigate these disruptions.

Recent developments in Turkish ports

One of the key players in Türkiye’s trade logistics is the merger between DP World and Evyap Group, which has created a new international logistics hub on the Marmara Sea. This strategic partnership brings together the strengths of two major ports, DP World Yarımca and Evyapport, to form DP World Evyap. Under this merger, DP World assumes a 58% stake in Evyapport, while Evyap Group secures a 42% share of DP World Yarımca. The combined entity boasts a significant increase in capacity, with a total annual container handling capacity exceeding two million TEUs and a combined 2,088 meters of berthing space, allowing more than one ultra-large container vessel to berth simultaneously at both terminals [2][4][5].

This merger is expected to enhance end-to-end solutions, improve speed and efficiency, and provide new benefits to customers. Kris Adams, CEO of DP World Türkiye, emphasized that this partnership will bring significant economic benefits to Türkiye and the wider region, doubling the capacity in a core area where industries such as mining, steel, and automotive are prominent [5].

Another significant development is the ongoing negotiations between Türkiye and Abu Dhabi Ports (AD Ports) to establish a joint venture for the operational rights of the Aegean port of Izmir. Izmir Port, one of Turkey’s largest in terms of container volume and cargo tonnage, is set to receive new investments, with AD Ports intending to invest $500 million in a new company proposed by Turkey’s sovereign wealth fund. This investment is part of a broader economic partnership between Türkiye and the UAE, aiming to quadruple bilateral trade from $10 billion in 2022 to $40 billion by 2028 [3].

Consolidation and expansion

The Turkish port scene is also characterized by its fragmented nature, with 26 ports split across the country. However, this fragmentation is being addressed through consolidation efforts, such as the DP World and Evyap Group merger, which aims to provide better services and increase efficiency. DP World Turkey is actively expanding its operations, including setting up block trains to Europe and establishing inland container depots, to offer comprehensive logistics solutions beyond what has been available previously [5].

Turkish ports’ response to global challenges

The importance of Turkish ports is further highlighted by their role in mitigating the impacts of global supply chain disruptions. For instance, the issues around the Red Sea have led to extended transit times for some customers, stretching journeys from 35 days to over 60 days. In response, DP World Turkey has introduced a rail solution for automotive customers from China to Turkey, reducing transit times to less than 35 days. Additionally, the company has developed a solution for transporting containerized vehicles for Chinese customers, leveraging its acquisition of automotive logistics provider CFR Rinkens in 2023 [5].

In terms of technological advancements, there is a growing emphasis on investing in technology, automation, and information systems within the Turkish logistics sector. Erdem Sözvar noted that more investment is needed in these areas not only in ports but also across the entire logistics sector to enhance efficiency and competitiveness [1].

Conclusion

In conclusion, Turkish ports are pivotal in the country’s trade logistics, offering a robust and efficient infrastructure that can mitigate global supply chain disruptions. The recent mergers, investments, and technological advancements in these ports underscore their critical role in maintaining and enhancing Türkiye’s position as a key player in international trade. As the global maritime landscape continues to evolve, Turkish ports are well-positioned to emerge as even more significant players, driving economic growth and trade volumes in the region.