june 2010 no : 10 / 326

Arkas took the delivery of ’s largest container ships

Nazım Ersen, Seda Turhan, Siegfried Crede, Karla De Andria, Lucien Arkas, Bernard Arcas, Horace Dumitrescu, Detlef Grigo

Arkas continues to invest in vessels, expanding its fleet with the purchase of two 2,500 TEU container ships constructed at the Volkswerft Stralsund Shipyard owned by the Hegemann Yard Group. Arkas took delivery of the first of the two vessels, the M/V Vivien A, on Saturday, May 8th at the shipyard in Germany.

Turkey’s largest container ship By taking delivery of Vivien A in Germany today Arkas has increased the number of Turkish-flag vessels in its fleet to 31. At 210 meters in length (two football fields), the Vivien A is Turkey‟s largest container ship. If the containers carried by the vessel were lined up end to end, they would be 15 km long. The Vivien A is approximately 50 meters tall and can carry 35,000 tons of cargo. With a top speed of 22 knots (nautical miles per hour), the vessel consumes an average of 35 tons of fuel per day at it most eco speed of 16 knots. The vessel‟s can take on 3,000 tons of fuel, and the vessel can travel approximately 24 days without stopping.

The Vivien A’s twin will be delivered next year At the christening ceremony held at Volkswerft Stralsund Shipyard, Hegemann Yard Group Vice CEO, Siegfried Crede, and Arkas Holding Chairman, Lucien Arkas, gave speeches. Both men emphasized the fact that the Hegemann Group and Arkas have developed a healthy partnership based on trust for the past 11 years.

Arkas Holding Chairman, Lucien Arkas said, “To date, the Hegemann Yard Group has built 17 vessels for Arkas. We are very satisfied with the workmanship and quality of all the vessels. Previously, the largest vessel in the Arkas fleet had a capacity of 1,604 TEU. This new vessel‟s capacity makes it not only the largest container ship in the Arkas fleet but also the largest container ship in Turkey. We will take delivery of it‟s twin next year.”

Arkas continued, “The contraction in foreign trade caused by the global economic crisis in 2009 is giving way to recovery. When we look at the statistics on Turkey‟s foreign trade in recent months, the increases in exports and imports indicate that foreign trade is beginning to recover. Because we believe that this situation will have a positive impact on container vessel shipping, we foresee a need and an opportunity, so we have purchased these vessels.

We call the Black Sea and the Mediterranean “Mare Nostrum” Our vessels are operated by Arkas Line, our own shipping company. We are making a variety of investments with the goal of being a shipping line operator that offers effective service in the Black Sea and the Mediterranean. This is one of the ways we have been working toward foreign growth and expansion for more than 10 years. Today we have 26 Arkas offices in 12 countries around the Mediterranean and the Black Sea. We take on representations by opening their offices either independently or by establishing local partnerships. In some countries where we do not have an office, we work with local agencies that serve Arkas Line. This enables us to provide service at 41 locations in 20 countries, including Turkey.

As a result, we conduct liner shipping not only just with connections to Turkey but also between foreign countries via our foreign companies. We are close to Specifications of M/V Vivien A becoming a shipping line that can provide links to every location in the Mediterranean, making us Container capacity 2.500 TEU effectively the top shipping company in the Length 210 m Mediterranean. Breadth 50 m Capacity 35.000 t Maximum speed 22 knot

Arkas Transport turns the clock back on its fleet of equipment

Murat Tokatlı (Otokar Commercial Vehicle Sales Manager for Domestic Market) presents a plaque of appreciation to Cenk Ergen(General Manager,Arkas Transport).

Arkas Transport added 14 Otokar brand semi- trailers to its fleet, five of which have are covered roll duct trailers. As a result, Arkas Transport provides solutions for different transportation needs by updating its fleet of equipment.

In a ceremony held in the Otokar Arifiye facilities in May, Arkas Transport took delivery of two different types of vehicles, nine of which are container transports and five of which are roll duct transports. The delivery ceremony was attended by Arkas Transport General Manager, Cenk Ergen, Arkas Automotive Board of Directors member, Marek Penzo, Arkas Automotive Sales Manager Orhan Genel and Otokar Commercial Vehicle Sales Manager for the Domestic Market, Murat Tokatlı.

In his remarks at the ceremony, Arkas Transport General Manager, Cenk Ergen said, “We are delighted that our past cooperation with Otokar, a leading institution in the sector, has grown and developed with this new vehicle delivery. Arkas Transport is working hard to achieve lasting customer satisfaction by meeting customer expectations in overland container transport in a rapid and competitive fashion. Therefore, we need products that handle different shipping requirements. We chose Otokar for the fleet that we have expanded to complement our service quality because it embraces an approach that offers solutions appropriate to our needs and an extensive product selection.

From port to factory and factory to port With an extensive fleet of equipment consisting of 420 tractors, long and short semi-trailers, sidelifters, tipping chassis, as well as telescopic, generator-equipped, canvas-covered and dumper semi-trailers, Arkas Transport provides port-to-factory and factory-to-port transportation throughout Turkey.

New purchased semi-trailers

Partner Teknik chooses Arfor once again

Partner Teknik A.Ş. has parts transported from Autoport to Libya for the construction of a factory in 2009 and this year it is working together with Arfor and Autoport to ship machinery and components from Turkey to Libya for a cement factory.

Arfor, Arkas‟ freight-forwarding and logistics services company, and Autoport, Arkas‟ terminal in Izmit, have added another achievement to the list of project transports they have completed together. Partner Teknik has chosen to work with Arfor and Autoport again because of the professional service provided last year and the successful performance of this cooperative venture. Last year, the materials for the cement factory that Partner Teknik was going to build in Libya were loaded at Autoport and transported to Libya by Arfor, which has been chosen again in 2010 for a similar transport endeavor.

The most appropriate modes of transportation were used In April, the machinery and components loaded at Autoport for Partner Teknik‟s cement factory in Libya reached the Libyan port of Al Khoms. Arfor organized each stage in the transportation of the materials with the most appropriate mode of transportation. The factory materials in the company‟s Adapazarı factory were moved to the port with semi- articulated and low-bed trailers. The goods were stored at Autoport, which has a security system that meets international standards, and were then loaded unto the ship with a crane by a team of port specialists and sent to the port of Al Khoms.

The most prosperous and developed country in Eastern Europe: Slovenia

1. Houses along the canal in the capital of Ljubljana 2. The Catholic Church in Ljubljana’s Preseren Square 3. Robba Fountain in Ljubljana 4. Folk dancers dressed in national Slovenian attire 5. Kojsko Village, one of the leading wine-producing regions

Slovenia is described as “the richest country in Eastern Europe” because of its significant production capacity and growth potential. With a population of only 2 million, the country is a relatively small market but trade volume with Turkey is increasing and the needle is moving in Turkey's favor when it comes to the balance of trade.

The Slovenian government and citizens have given significant support for the expansion of the European Union (EU) and Turkey's membership. Turkey’s geo-strategic location plays an important role in this position.

Slovenia proclaimed its independence in 1991 and joined the European Union in 2004. Fifty-seven percent of this country, which is approximately the size of Antalya, is covered with forest. With a population of 2 million, Slovenia has the largest GDP of any country tline joined the European Union in 2004. Slovenia was also the first of these countries to begin using the Euro. Slovenia‟s excellent infrastructure, well-educated workforce and strategic location between Europe and the Balkans are all advantages for the national economy. In 2004, it went from being “a country tline received loans from the World Bank" to “a contributing member country.” In 2007, the Organization for Economic Cooperation and Development (OECD) invited Slovenia to begin the membership process.

The Drava River in Maribor

An economy driven by the service sector In 2008, Slovenia‟s GDP was 60.24 billion dollars but this fell to 55.84 billion in 2009. The economy grew by 3.5 percent in 2008 but shrank 7.3 percent in 2009. Its per capita income of 27,900 dollars is relatively high in comparison with other Central European countries joining the EU in 2004. With the collapse of the powerful Yugoslavian market, the country‟s trade has shifted to the West and to growing markets in Central and Eastern Europe. As a result, two- thirds of its trade is conducted with EU countries. Slovenia offers abundant opportunity for both import and export as it follows an open economic policy without trade restrictions. In this regard, the Slovenia economy is based on foreign trade, leaving it vulnerable to the impact of economic difficulties in countries with which it conducts trade and this has a negative effect on its ability to compete. The global economic crisis of 2009 and the shrinking export market driven by the competition created by China and India caused a decline in industrial production of more than 6 percent. The economy is divided by sector as follows: agriculture (2%), industry (37%), financial services sector (61%). Industry and construction account for more than one-third of GDP and 62.8% of the work force is employed in the service sector. The agricultural products raised in the plains watered by the Sava and Drava rivers primarily consist of wheat, corn, potatoes and grapes. Vineyards and wine-production are common in Maribor. The most important mineral resources in Slovenia are lignite, iron, zinc and mercury. The primary sectors in its developed industry are furniture, iron-steel, paper products, textiles and chemicals. The country‟s only link to the Mediterranean is the port of Koper, which plays an important role in foreign trade. In 2008, the country exported 28.7 billion dollars worth of goods but this fell 18.11% in 2009 to 24.3 billion dollars. Slovenia‟s top trading partners are: Germany (18.2%), Italy (11.4%), Croatia (8.1%), Austria (7.3%), France (5.5%) and Russia (4.7%). Slovenia primarily exports manufactured goods, machinery and transportation vehicles, chemicals and foodstuffs to these countries. Its imports of 32.4 billion dollars in 2008 fell 41.48 percent in 2009 to 22.9 billion dollars. With a 17% share of its imports, Germany stands out as its most important partner in this regard. Germany is followed by Italy (16.4%), Austria (11.1%), France (4.6%) and Croatia (4.1%). Its leading imports are: machinery, manufactured goods, chemicals, fuel, oils and foodstuffs.

Trade balance in Turkey’s favor Trade relations with Turkey are conducted within the framework of the Customs Union because Slovenia became a member of the EU in 2004. Even though trade relations between the two countries have not yet met expectations, there is improvement. Even though trade volume fell 5.66% in 2009 from the 892.34 million dollars achieved in 2008, the balance of trade continues to trend in Turkey‟s favor. In 2009, exports fell 9% compared with a year earlier to 594.92 million dollars while imports increased 2.44 percent to 249.58 million dollars. When figures for the first three months of 2010 are compared with the same period in the previous year, there is a drop in imports of 109.36% and an increase in imports of 31.85%. Goods Turkey exports to Slovenia include overland transportation vehicles, pharmaceuticals, medical materials, electronic machinery and devices, rubber and rubber products, inorganic chemicals, radioactive compounds of rare elements and ready-made apparel. The products tline Turkey primarily imports are electrical machinery and devices, paper, cardboard, chemicals, metal processing machinery, metal ores and scrap metal.

Investment opportunities Slovenia is a preferred country for foreign investors because of its stable economy, growth potential and strategic location. The Slovenian Trade and Investment Promotion Agency (TIPO) provides investors with funds and incentives. Those new to the services and manufacturing sectors are assisted within the scope of the current Grant Plan and efforts are being conducted to cut costs. However, direct foreign investment is below the average for the region due to the high tax rates. There are opportunities for Turkish investors in the country‟s infrastructure projects and Photograph: Markus Bernet privatizations. Tartini Square in Piran

Sources: • Office of the Foreign Trade Undersecretary for the Prime Minister, www.dtm.gov.tr • CIA World Fact Book, www.cia.gov • www.wikipedia.org • Export Development Research Center, www.igeme.org.tr • Foreign Economic Relations Board (DEIK), www.deik.org • www.ljubljana.emb.mfa.gov.tr • www.epp.eurostat.ec.europa.eu • http://creativecommons.org/licenses/by-sa/2.0/deed.en • The photograph in page 9 belongs to Markus Bernet (07/20/2005). http://creativecommons.org/licenses/by-sa/2.0/deed.en

FOREIGN TRADE BETWEEN TURKEY- SLOVENIA (2005-2010) ( Million $) Year Exports Imports Total Foreign Trade 2010* 60.79 58.83 119.62 2009 594.92 249.58 844.50 2008 648.71 243.63 892.34 2007 486.77 232.32 719.09 2006 417.73 201.82 619.55 2005 332.41 217.87 550.28 *January - March Source: TÜIK

Port Finance Conference is held in

Özgür Kalelioğlu, Trade and Systems Support Director for Arkas Port Services Group

The Port Finance International conference was held at the British Consulate April 14-15th. Trade and System Support Director for the Arkas Port Services Group, Özgür Kalelioğlu participated in the conference as a speaker. Port financing and the latest trends in this regard were discussed.

The two-day Port Finance International Conference offered upper-level executives from companies operating ports and terminals a chance to meet with banking and financial experts. The conference brought many domestic and foreign attendees together to discuss issues such as the impact the global economic crisis is having on the sector, port financing, the past and present of Turkish ports, opportunities in the Black Sea, and the current status and capacity of ports in Bulgaria and Ukraine.

Among the conference speakers was Özgür Kalelioğlu, Trade and System Support Director for the Arkas Port Services Group. He touched on the impact the economic crisis has had on transportation and ports and then spoke on the measures that had been taken and the strategies they had implemented during this time at Marport, Limar and Autoport, which are part of the Arkas Port Group.

Kalelioğlu said that there had been a decrease in TEU volume handled in the Aegean, Mediterranean and Marmara seas and described how ports had implemented crisis management with the various measures taken as the market shrank. In his remarks, Kalelioğlu also mentioned Autoport, Turkey‟s first car terminal, saying, “It is unfortunate for Autoport that the automotive sector was so negatively impacted by the crisis. This has been reflected in Autoport‟s handling of automotive vehicles. However, operations at the port were not halted and it worked to get through the crisis by serving transportation projects and open freight. Kalelioğlu stated that in the future port operators would more widely implement a cautious „predict and provide” approach to service. He said, “Optimism is slowly returning. More attention will be paid to monitoring investment and equipment orders in light of demand.”

Arkas Anadolu Logistics listens to its customers

Arkas Anadolu Logistics conducted a survey among its customers that addressed warehousing, special equipment, cabotage and combined marine transportation services. The survey revealed a customer satisfaction rating of 82%.

Arkas Anadolu Logistics is one of the first names that comes to mind in the logistics sector when it comes to brand name and service quality as its operations are based on maximum customer satisfaction. Arkas Holding Customer Relations Management conducted a survey for the purpose of listening to suggestions and viewpoints regarding the services provided to Arkas Anadolu Logistics customers, improving existing services, identifying new needs and offering solutions for these needs. The survey asked customers in the cities of Istanbul, Ankara, Izmir, Bursa, Eskişehir, Konya, Kayseri, Samsun and Gaziantep, all of which have Arkas Anatolia Logistics offices, questions about warehousing, special equipment, cabotage and combined marine shipping services.

Satisfaction rating of 82% The survey was conducted online for the purpose of identifying how satisfied Arkas Anadolu Logistics customers are with the services they receive. The survey was divided into the following categories: “general information”, “service process”, “final assessment” and “suggestions and comments.” The results obtained from forms filled out on the internet were analyzed and submitted as a report. The report showed that the primary reasons customers choose a company are “quality service” and “reliability” and that Arkas Anadolu Logistics achieved a customer satisfaction rating of 82%. The report also served as a guide for identifying areas that need improvement so that work on these areas can proceed. Arkas Anadolu Logistics plans to conduct this survey every year.

Arkas Customer Relations Management knows that quality service is achieved by listening to the customer and therefore continues to work on similar projects for other Arkas companies.

Turkey’s Railway Stations An important chapter in the National Struggle: Akşehir Station

Akşehir Station

In addition to serving as a crossroads of trade for centuries, Akşehir was the city where preparations for the National Struggle were conducted, where the strategic plans for the Grand Offensive were drawn up and it was the military headquarters for the Western Front in the War of Independence. Atatürk visited the city 22 times, mostly by train, and stayed a total of 54 days here.

Akşehir is an important stop on the railroad that connects Istanbul with the south and southeastern regions. The saying, “History happens wherever the railroad passes,” is certainly true of Akşehir. Akşehir Station was the place where soldiers were gathered and shipped out to Anatolia and the interior of western Anatolia during WWI and where they returned after receiving their discharge. At the end of , the had lost its former power and was occupied by allied powers. The novel by Tarık Buğra entitled, Little Master (Küçük Ağa), describes the struggle for independence beginning in Akşehir. The opening pages of the novel take place at the Akşehir Station and, in a sense, reflect the important role that it played.

The task of establishing the republic is left to Anatolia and the military headquarters of the western front is moved to Akşehir on 18 November 1921. Here, Atatürk and his comrades-in-arms prepare 9 months and 10 days for the Grand Offensive. It could be said that the Republic was born in Akşehir. Volunteer soldiers, uniforms and weapons were collected from Konya and the surrounding towns and villages.

The line was built at the end of the 19th century A concession agreement was signed between the Ministry of Public Works and the Anatolia Railroad Company on 15 February 1893 for the authorization to build and operate the Eskişehir-Konya and Ankara-Kayseri railroad. Although construction on the 445 km line that began in September in Eskişehir was briefly halted due to an outbreak of cholera, when it resumed, it continued uninterrupted until completion. After the official acceptance procedures for the 77 km stretch between Eskişehir and Kütahya, the 95 km line between Kütahya and Afyon was put into operation in August 1894 and the approximately 99 km stretch between Afyon and Akşehir was brought online at the end of the year. The Akşehir-Ilgın line was launched in May 1894. The total cost of this line was 445 million kurush and it would be July of 1896 before it reached Konya but now the trip from Istanbul to Konya took only two days by train. The consortium, which included Deutsche Bank, owned over 1000 kilometers of railway in Anatolia with connections to Europe. The line employed 33 locomotives, 68 passenger cars and 80 freight cars, each capable of carrying 15,000 tons of freight. A railway station that witnessed history The Akşehir Station is three kilometers from the city center situated at the junction between the Isparta-Akşehir and Afyon-Konya highways. Over time, the city has grown so that it does not seem far but no one knows why it was planned this way in the late 19th century. Although we know that the Akşehir station building was constructed in 1894, in the Inventory of Natural and Cultural Assets of the

A view from the platforms General Directorate of Old Works and Museums it is listed as a masonry building with characteristics of the pre-1920 Late Ottoman Period.

ATATÜRK ANECDOTES His aide de camp, Salih Bozok relates how fifteen days before the Afyon Offensive, General Mustafa Kemal went to the Western Front in Akşehir to give the orders to prepare for an offensive and speak face-to-face with the commanders. We left the train at the Biçer Station and travelled by car to Akşehir via Sivrihisar. As we were getting into the car, General Mustafa Kemal took a deep breath. I said, “Are you feeling ill, General?” - "No, I'm fine," he said. - “Then you must be thinking about something," to which he replied: - “If I have the time to implement what I am thinking about, a military spectacle that will dazzle the eyes of the world will take place.”

Atatürk with General Ismet and other commanders in front of a station sign written in both Arabic and Latin characters (4 April 1922). Atatürk at the Akşehir Train Station after the proclamation of the Republic.

I understood from these words that the General was on the verge of making critical decisions and we were on the eve of critical events. The day after we arrived in Akşehir I learned that all of the commanders had been summoned to General Ismet‟s headquarters and that it had been decided to launch an offensive on the Afyon front 15 days hence. We did not stay long in Akşehir. We returned to Ankara a few days later and then, fifteen days later, we left Çankaya at midnight by car for Konya and from there to Akşehir to take part in the offensive. As a result of the offensive that was launched, a military spectacle that dazzled the eyes of the world took place.” Sources: • Atatürk Akşehir'de, Araştırmacı-Yazar Mehmet Koç, Akşehir Belediyesi Kültür Yayınları • Yaveri Atatürk'ü Anlatıyor, Salih Bozok, Hazırlayan; Can Dündar, Doğan Kitapçılık A.Ş. 7. Baskı. Nisan 2006 • Fotoğraflarla Atatürk, Doğumundan Cumhuriyetin İlanına Kadar, Yapı ve Kredi Bankası'nın 20. Kuruluş Yılı için hazırlanan özel kitap,1964 • www.durmusyilmaz.com, Mütareke zamanında Akşehir, Prof. Dr. Durmuş Yılmaz • www.dergiler.ankara.edu.tr, Almanya'ya Verilen İkinci Demiryolu İmtiyazı: Hububat Hattı, Ayla Efe

*We would like to thank the Turkish Railways' Directorate of the Press and Public Relations and Chief of Akşehir Station Mehmet Şatır. DB Schenker Arkas renews its contract with THY Teknik

DB Schenker Arkas has won the tender offered by Türk Hava Yolları Teknik A.Ş., which is currently a customer of Aeroparts, the department which provides transportation services for airplane parts, and has once again become the company's logistics solution partner.

DB Schenker Arkas has realized a first in this field in Turkey by providing custom logistics solutions through the Aeroparts Department it established in 2007 for numerous airline companies and airplane operators, such as Atlas Jet, Alp Aviation, Kale Aviation, MNG Teknik, MNG Airlines, Sun Express, Sky Airlines, AYD (Turkuaz) Airlines, ULS (Kuzu) Airlines, Prima Aviation and Bora Jet. Now, DB Schenker Arkas has won the tender opened by THY Teknik and will serve the company in this area for two more years. DB Schenker Arkas handled more than 9000 separate loadings for THY Teknik in 2009, primarily imports.

Uninterrupted 24/7 service The Aeroparts Department augments the specialized work of DB Schenker Arkas in air freight. As part of the services provided, it ships materials as diverse as screws that weigh one kilogram to airplane motors that weigh 7-8 tons to any destination around the globe. The most important difference between the Aeroparts Department and the normal import- export departments is that it works 24/7 and there is no delay in the shipment of this freight.

In brief...

German research ship chooses Arkas Shipping as its agency Germany‟s most advanced research ship, Maria S. Merian, arrived in Turkey in April for the work it will conduct in the Mediterranean and Black Seas.

Maria S. Merian selected the Haydarpaşa port in Istanbul for bunkering, and procured agency services from Arkas Shipping when it called at Haydarpaşa. Arkas was responsible for handling all of the official procedures related to the vessels arrival at and departure from the Port of Haydarpaşa as part of its agency services.

The ship completed its activities in the Black Sea and is continuing its work in the Mediterranean. The vessel plans to make its second stop in Istanbul in July.

Fully-equipped vessel In addition to the crew of 21, the vessel is carrying a 22-person team of scientists and contains several laboratories. The ship has a room reserved for the equipment necessary for scientific research that is capable of holding 150 tons. The vessel is 94.8 meters long, 19.2 meters wide with a maximum draft of 6.5 meters and is capable of speeds up to 15 knots. Maria S. Merian will conduct scientific studies including geological and biological measurements to collect data regarding the effect that changes in the concentration of oxygen between the Mediterranean and Black Seas have on the ecosystem. The final research report will be sent to Turkey.