september 2010 no : 10 / 329

Hanjin Shipping expands its goals for Turkey

After starting direct service from the Far East to Mersin in June, the company has now appointed a Turkish representative to work at Arkas Shipping, the company’s agency in Turkey.

Hanjin Shipping is one of the largest shippers in the world, providing service to five continents from Europe to Australia with 33 years of experience in the sector. In addition to its existing services (Far East, West Africa, US/Canada), Hanjin started a direct Far East service in June that calls at Mersin port. The new service will follow the following route: Busan-Shanghai-Ningbo - Yantian - Singapore -Jeddah-West Port Said - Alexandria - Mersin - Trieste - Koper -Rijeka-Venice-West Port Said-Singapore. Transit times for export and import cargo will be 20-25 days. Two of Hanjin Shipping’s vessels will operate on this line that provides service from the Far East to the Eastern Mediterranean and Adriatic. Instead of Port Said, Mersin Port will be used as a transfer terminal for cargo destined for Gemlik and Pire.

Represented by Arkas Shipping in Turkey since 2002, Hanjin Shipping is expanding its goals for Turkey by drawing strength from this successful partnership that is based on trust. So, in addition to starting up a new direct line that calls at Mersin, the company has appointed Mr. Kook-Shin Kim as their Turkish representative to work for three years at Arkas Shipping, which is their Turkish agency.

Hanjin Shipping opens a new terminal at Algeciras After working in Spain since 2008, Hanjin Shipping has now opened a terminal at Algeciras, equipped with the first automated site planning system in the country. Container ships with a capacity of over 10,000 TEU can dock at the terminal, which is built on 350,000 square meters of land in Spain’s largest port and can handle 1,560,000 TEU per year. The goal is for this terminal to be a hub in the Mediterranean because of its geographic location. The opening ceremony was hosted by Eun Young Choi, President and CEO of Hanjin Shipping, and was attended by Arkas Holding Executive Vice President Bernard Arcas and Arkas Holding Agency Services Group President Richard Pariente.

Industries encouraged by coastal shipments

Arkas introduces another solution for industries looking for suitable shipping options with the regular weekly coastal shipping service that it started on July 1st between Istanbul, Gemlik, Izmir and Mersin. With this service, the company is making use of a very significant opportunity that until now has not been used in Turkey for domestic shipping.

Arkas provides its customers with price and capacity advantages because it is able to carry more cargo in a single shipment with its coastal shipping service. Another advantage provided by the service is the fact that there are no price changes due to seasonal fluctuations. The M/V Teoman A and M/V Jak A vessels handle these coastal shipments, which are carried out through cooperation from Arkas Container Transport and Arkas Anadolu Logistics. Regular weekly container shipments started between the ports of Istanbul, Gemlik, Izmir and Mersin, and the port of Yılport in Gebze was added in September. The vessels also call at Gazimağusa port in TRNC to transport import and export goods.

When cargo brought from customer factories in Istanbul, Bursa, Izmir, Mersin, Adana, Cyprus and Gaziantep is shipped from harbor to harbor and integrated with truck and rail transport, the company’s workload is reduced significantly, especially with very large shipments. Cargo unloaded at Mersin Port can be delivered as far as the provinces in southeast Turkey. If there is a lot of cargo, instead of transporting it overland with 20-30 trucks, the shipment can be transported to the destination port in one trip with a single shipping company. The customer has the added benefit of having the cargo transported in containers without being broken or damaged.

Full support from customers Fatih Özgiray is the Logistics and Planning Supervisor at Artenius TürkPET, which has a factory in Adana and ships its cargo from Aliağa Petkim to Mersin Port. He says, “We are grateful to Arkas for starting this coastal shipment service, which we have needed for a long time. This has been a very important step forward, both for our suppliers and our customers. We will be using this transport method for transporting raw materials as well as products sent to our customer.”

DB Schenker Arkas opens its Izmir Sasalı Warehouse

After opening its new warehouse in Izmir-Sasalı on 21 July, DB Schenker Arkas now has a total of five depots in Istanbul and Izmir that cover a total of 96,640 square meters.

The DB Schenker Arkas Sasalı Warehouse covers 12,790 square meters of indoor and outdoor space, offering special services for industries in the Çiğli Organized Industrial Zone. In addition to storage and distribution, the warehouse provides all kinds of added value logistics services according to customer demands. The warehouse stores mostly goods such as chemical substances, paper, construction machinery and spare parts. Thanks to its proximity to the Organized Industrial Zone, DB Schenker Arkas saves its customers a significant amount of time and money.

In addition to its new warehouse in Sasalı, DB Schenker Arkas also has warehouses in Orhanlı, Samandıra and Hadımköy in Istanbul and in Sütçüler in Izmir, all of which cover a total of 96,940 square meters of indoor and outdoor space. As part of its effort to offer its customers optimum service, DB Schenker has implemented the5S System, a program that pursues continual improvement, in all of its warehouses. The system is represented by five Japanese words that begin with the letter S: seiri (sort), Technical specifications: seiton (set in order), seiso (shine), seiketsu • Associated with the Izmir Customs Office (standardize), shitsuke (sustain). • Type A general warehouse • Total outdoor space: 7.590 m2 • Total indoor space: 5.200 m2

Marport – transfer port for grains

Grain comes from Russia to Marport as transit goods destined for the Far East. An expert team at the port quickly transfers the grain into containers and loads it onto outbound vessels.

Since April, grain cargo has been arriving in bulk form at Marport, which is Turkey’s first private container port. The cargo is brought from Russia to Marport in Ambarlı with river vessels that have a capacity of about 3,000 MT (metric tons).

Thanks to Marport’s efficient operational infrastructure and experienced staff, cargo is quickly unloaded without delay using bucket cranes and pneumatics. A “bunker system” set up at Marport is used to fill the containers, which are then loaded onto MSC vessels. The rapid operation carried out at Marport’s pier enables customers to save time. In addition, freight costs are reduced significantly because the bulk cargo is transferred to containers before it is shipped to the Far East. Marport port has an annual handling capacity of 1,800,000 TEU, and the port has a goal of regularly handling 750 TEU each month with this special transportation project.

A country worth investing in because of its high level of technology: The Czech Republic

1: A view of the old city from an island on the Vltava 2: Castle Square in Prague 3: Ancient astronomical clock in Prague 4: City square in Prague 5: Karlovy Vary, an important tourist center in the Czech Republic

Czechoslovakia chose capitalism in the 1989 Velvet Revolution. In 1993, it peacefully split into two countries, the Czech Republic and Slovakia. The Czech Republic was accepted as a member of the European Union in 2004, and today it is a modern, well-developed central European country.

Ninety-five percent of the land-locked country is covered by mountains. About 60 percent of the GDP is made up of the service sector, in which telecommunication, tourism and banking are leading players.

Vltava River in Cesky Krumlov, considered the Czech Republic’s summer resort

The Czech Republic is a suitable choice for investing because of its location in the heart of Europe, its open economy, its experienced workforce and its high level of technology. Notable for its quality in added value manufacturing, the country is categorized by the World Bank as a high income economy.

After it became an EU member, the Czech Republic’s GDP grew by 6 percent in 2005 and 2006. Before the global economic crisis, this growth occurred because of the exports it sent to European Union countries, including Germany. The Czech Republic is one of the most stable post-Communist countries and has one of the highest standards of living. The investment policies tline the country has applied have also made a difference. Growth was 2.5 percent in 2008, but it dropped 4.1 percent in 2009 due to the global economic crisis and the drop in foreign demand. The GDP dropped from 267.6 billion dollars in 2008 to 256.6 billion dollars in 2009. Per capita income dropped 4.38 percent from the previous year to 25,100 dollars. The GDP consists of 2.8 percent agriculture, 35 percent industry and 62.3 percent services. Industry employs 40.2 percent of the workforce, while services employ 56.2 percent. The major industries are automobiles, machinery, iron and steel, metal products, chemicals, electronics, public transportation, textiles, glass, breweries, ceramics and pharmaceuticals. Agricultural products include sugar beets, feed crops, potatoes, wheat and hops. The nation’s exports consist of machinery, public transport vehicles, raw materials, fuel and chemicals. These exports dropped from 145.7 billion dollars in 2008 to 106.4 billion dollars in 2009. The country’s primary export partners are Germany (28 percent), Taiwan (8.5 percent), Slovakia (8.4 percent), Poland (5.9 percent), France (4.9 percent), England (4.4 percent), Austria (4.3 percent) and Italy (4.3 percent). On the other hand, imports dropped from 139.4 billion dollars in 2008 to 99.7 billion dollars in 2009. The company imports machinery, public transportation vehicles, raw materials, fuel and chemicals from Germany (28.6 percent), Taiwan (6.8 percent), Slovakia (6.2 percent), Poland (6.1 percent), Russia (5.8 percent), Holland (5.3 percent), Austria (4.9 percent) and China (4.6 percent).

Trade volume does not reflect the true potential Turkey exported 158.74 million dollars to the Czech Republic in 2000. This figure exceeded 700 million dollars in 2008, but then dropped to 489 million dollars in 2009 due to the economic crisis. Figures of exports in the first six months of 2010 indicate a 51.09 percent increase over the same period last year. However, trade between the two countries does not reflect the true potential, and the deficit in the trade volume is increasing in the Czech Republic's favor. Textiles are the largest Turkish export to the Czech Republic. Other products include woven and non-woven clothing, accessories, land transportation vehicles, electric machinery and devices, parts and components, boilers, machinery and devices, metal end products, communications, video and sound recording devices, tobacco and tobacco substitutes, plastic, plastic finished goods, textile fibers and products, fruits and vegetables. Import figures dropped from approximately 1.3 billion dollars in 2008 to 1.03 billion dollars in 2009, but have risen 38.93 percent in the first six months of 2010 when compared with 2009. Imported goods include machinery and devices used in the energy production, electricity and various other industries, parts and components, motor vehicles, office and information processing machines, iron and steel, iron and steel products, textile fiber and products, communications, video and audio recording devices, cardboard, paper, diesel/semi-diesel or gasoline-powered passenger cars. Prague

Limited trade between the two countries The Czech Republic offers an attractive environment for foreign investors because of its central location in Europe, low-cost utilities and well-trained workforce. However, trade between the Czech Republic and Turkey is very limited. There are 80 Turkish companies operating in the Czech Republic in the commerce and service sector tline have a capital investment of at least 15 million dollars. The country has a well-developed industrial infrastructure and there are opportunities for cooperation in the areas of technology development, infrastructure projects, textile, food, tourism, iron and steel, engineering products, machinery and equipment, automobiles and parts, energy contracting projects and marine industries (such as drilling, seismic technology, ship components, etc). Advanced Czech technology and engineering provides an advantage in these kinds of joint ventures. In view of Turkey’s geographical location, there are opportunities for cooperation on infrastructure tline would connect Central Asia and the Caucasus region to Europe, railroad projects, and construction of pipelines to transport energy resources through the region. One positive development in relations between the two countries is tline the amount of Czech capital invested in companies operating in the commerce, manufacturing, tourism, energy and transportation sectors in Turkey has increased from 40-50 million dollars to 2.5 billion dollars in the past three years.

Sources: • Undersecretary of Foreign Trade at the Turkish Prime Minister’s Office, www.dtm.gov.tr • CIA World Fact Book, www.cia.gov • www.wikipedia.org • Export Development Research Center, www.igeme.org.tr • www.mzv.cz • www.europa.eu

FOREIGN TRADE BETWEEN TURKEY CZECH REPUBLIC (2005-2010) ( Million $) Year Exports Imports Total Foreign Trade 2010* 310,46 598,28 908,74 2009 489,02 1028,64 1517,66 2008 700,82 1303,96 2004,78 2007 577,61 1169,13 1746,74 2006 377,71 681,66 1059,37 2005 290,11 698,56 988,67 * January-June Source TUIK

Smyrna heads into foreign markets

Smyrna, a new wine from the Aegean, is now a strong contender in foreign as well as domestic markets. Smyrna was exported to Hong Kong as the wine’s first foray into foreign markets.

In October of last year, Lucien Arkas purchase a majority of shares in Idol wines, which has a new series called Smyrna that is sold on foreign as well as domestic markets.

Smyrna: a new line of Aegean wines Smyrna wines were put on the market in Turkey in July after much hard work. The most distinctive characteristic of Smyrna wines is that they are made from organic grapes grown in the company’s own vineyards in Torbalı, Izmir. Wine aficionados will enjoy the fruity, easy to drink Smyrna series, which is made from varieties of grapes that include Viogner, Chenin Blanc, Chardonnay, Shiraz, Cabernet Sauvignon, Merlot and Bornova Misketi, some of which are being raised in Turkey for the first time.

A goal of 15 percent market share Producing wines from organic grapes is now a very important criterion for entering foreign markets. Now that Smyrna wines have been exported to Hong Kong in the Far East, work is being done to introduce the wines to Britain, Germany, Scandinavia and other European markets.

200,000 bottles of Smyrna wines were produced in 2009, and a goal has been set of achieving a 15 percent market share in five years in the middle price segment of the domestic market Tours on MSC Cruises will be a hot item this winter

MSC Cruises offers unforgettable cruises to the Canary Islands on the five star MSC Fantasia for people who can’t get enough summer fun or who just want to get away during the cold winter months with their children during the semester break.

MSC Cruises, Europe’s largest cruise ship company, operates in Turkey in a partnership with Arkas Holding. The company is organizing tours of the Canary Islands this winter on the MSC Fantasia, one of the most luxurious ships in the fleet. The MSC Fantasia will take 12 days and 11 nights to tour the Canary Islands, departing from Genoa on 10 December 2010, 20 February 2011 and 14 March 2011. The trips will include stops in Italy, Spain, Morocco and Portugal. The tour that departs on 10 December will call at Genoa, Barcelona, Funchal, Tenerife, Arrecife, Malaga, Civitavecchia and return to Genoa, while the tours that depart on 20 February and 14 March will call at Genoa, Barcelona, Casablanca, Tenerife, Funchal, Malaga, Civitavecchia and return to Genoa. The same schedule will also be offered between 2 January and 9 February 2011, which falls during the school break. On this delightful trip, guests will enjoy cultural tours of historical sites in Rome and Civitavecchia, historical tours of the ports of Barcelona and Casablanca, and the golden beaches of the tropical Canary Islands, where they will soak in the warmth of the tropics.

Fun activities for kids Not only does the MSC Fantasia have many activities for children, such as art classes, dance lessons and mini- Olympic games, it also has clubs for various age groups. In addition, the ship has a waterslide in the children’s area that spans two decks, large enough to compete with Disneyland rides.

If reservations are made for the tour by 29 October Some of MSC Fantasia’s features: 2010, the first two people in the cabin will get a discount • The largest cruise ship built by a European shipowner of 100 Euro per person. • 333 meters long, 38 meters wide • Berths for 3,959 passengers • 80% of the 637 cabins have balconies

Historical railway station in an ancient city: Salihli Railway Station

Salihli Railway Station

Salihli is a town where the first coins in history were minted during the Lydian Kingdom and where caravans have passed through for centuries. Salihli Railway station was an important stop where camels were replaced by trains in the second half of the 19th century.

Located approximately 63 kilometers from Manisa’s provincial center, Salihli was registered as a provincial district after the 1831 census. The Izmir-Kasaba (Turgutlu) railway was completed in 1866, and a decision was made to extend the railway to Alaşehir. After the railway reached Salihli on 13 March 1875, the town began to develop rapidly. The reason that the extension of the line from Turgutlu to Alaşehir was routed through Salihli is that it was located on a caravan route. As camels began to be replaced by trains for transporting cargo on this route, Salihli became connected to Manisa and Izmir, as well as to Istanbul via Bandırma through the Manisa branch. Other factors that influenced the town’s development are the fact that it is located on roads that connected Western Anatolia with Central Anatolia and also the fact that it is a residential and commercial center that is as old as the Kingdom of Lydia. After the railway was built, cotton and other agricultural products raised in Salihli were transported to Izmir more quickly. This resulted in increased agricultural production and trade.

One of the oldest railway stations At 135 years, Salihli Railway Station is one of Turkey’s oldest railway stations. It was constructed by the French and began operations in 1875. When the Greeks landed troops in Izmir on 15 May 1919 and began their invasion, a group of black African Muslim soldiers from Senegal, a French colony, set up a guard around the station. In spite of this, the building caught fire in a blaze started by Greek soldiers. On 5 September 1922, Salih was freed from the invaders, followed by Izmir four days later. In 1924 the railway station was repaired by a civil engineering contractor, Fesçizade Mehmet Galip Bey, who restored the building to its original condition. The historical stone building was renovated in 2008 and given modern lighting. A memorial now stands on the east side of the building with photographs that commemorate when Mustafa Kemal stopped to rest at that very place.

The Izmir-Ankara Rapid Rail Line will pass through Salihli The Turkish Railway Commission is working on the Izmir-Ankara Rapid Rail Line. The existing 827-kilometer-long line takes 13 hours for the trip via Balıkesir and Eskişehir. The new line will enable passengers make the trip in 3.5 hours at 250 kilometers per hour. There are two alternative routes for the track. A tender for its construction was held in 2008 and a goal has been set to break ground on construction this year. One potential route that is 623 kilometers long starts at the bus station in Işıkkent, Izmir and travels via Kemalpaşa, Turgutlu and Salihli to Afyon and Polatlı. An alternative route, which is 663 kilometers long, starts at Izmir’s city center and travels through Menemen and Manisa before going through Salihli, Uşak and Afyon on its way to Ankara. A message of gratitude to Salihli One of the most important steps in the founding of the Turkish republic was gaining freedom from the enemy invasion. The great Turkish leader Atatürk made this speech to the public when he visited Salihli, which played an important role in the war for independence: “Thank you for the feelings you have expressed. I understand your zeal to express your true feelings is expressed by that the fact that you have come here at such an early hour. For this I am incredibly fortunate. I am moved by the same feelings for you.

Passenger platform My dear people: You have faced great persecution and suffering, but you have been freed from that forever. Those dark days can no longer be repeated, because our nation has undergone a great awakening and is now very vigilant. Now we must take very strong and fundamental measure to ensure lasting freedom for our country. The primary and most important measure is to muster armies of scholarship and enlightenment. If we do so, we will be able to look to the future with confidence.

My dear people: You know that we are fully devoted to the National Pact, which has saved our lives, our future and our honor. Our Passenger platform nation and the army that came from that nation settled this National Pact with bayonets. We have a delegation that is working with Lausanne to achieve a political expression of this fact. As we work within the borders of our homeland, we must always be prepared to bring down any possible enemies that we may face. The people of this nation have made great sacrifices for the past three years. If necessary, we will sacrifice much more for life and honor.”

Rear of the station building Sources: • www.tcdd.gov.tr • Selçuk University, Ahmet Keleşoğlu Education Faculty Magazine, Number 27, pp. 31 -50, 2009 • www.wikipedia.org • www.demiryolcuyuz.com • www.skyscraperlife.com • www.sektorgazetesi.com • www.salihli.bel.tr • www.yeniasir.com.tr Sign at the station commemorating Atatürk’s visit to • www.rayturk.net Salihli We would like to thank the TCDD Directorate of the Press and Public Relations and Salihli Railway Station Superintendent Emin Kocaman for their support with photographs and archived information.

Peugeot RCZ goes on display at Arkas Automotive

Arkas Automotive Peugeot Gaziemir At its showroom in Gaziemir in July, Arkas Automotive automobile aficionados Peugeot RCZ, the first model outside the company’s standard product range.

Ever since it joined the Peugeot dealer network two years ago, Arkas Automotive has been recognized as one of the best dealers in Europe two years in a row in the Peugeot Quality Awards. Arkas Automotive has two Peugeot showrooms, one in Gaziemir and one in Halkapınar. The Gaziemir showroom hosted a promotional event for the RCZ, Peugeot's first model that is outside its standard product range.

At the beginning of 2010, Peugeot renewed its corporate image with a new marketing campaign and established its goals for the year 2015. The company wants to go up three notches in the ranking of world automobile makes, to set new standards in the area of automotive design, and to be a leader in transportation services. In order to reach these goals, Peugeot has

Peugeot'nun new model RCZ Peugeots new model RCZ developed a bold product strategy with 14 new models that will be put on the market from 2010 to 2012. The first of these new products is the RCZ, which will be on display in Turkey for the first time. Before the promotional campaign that will be held in September, Arkas Automotive held a special cocktail in Gaziemir for the RCZ, which has an athletic, stylish and aerodynamic design. The RCZ has been equipped with technology that establishes a new world standard for its combination of high performance, low fuel consumption and low CO2 emissions.

In Brief...

MSC Magnifica greets first guest in a shell A Chelonia mydas sea turtle named Isabella, who was rescued 40 years ago by marine biologist Jacques Cousteau, got a free ride on the MSC Magnifica. After living in an aquarium at the Stuttgart Museum for 30 Arkas Container Transport (Arkas Line) and Arkas years, the turtle lived for 10 years at the Naples Russia participate in World Food Fair Zoological Station in Italy. A special team was formed to see whether this turtle, who is one meter long, is able to return to the wild and reproduce there. MSC Cruises was Arkas Container Transport (Arkas Line) and Arkas Russia are participating in the 19th International World Food Fair glad to respond positively to the team’s request for help. that will be held on 14-17 September 2010 at the Isabella departed Bari, Italy on the MSC Magnifica, the ExpoCenter in Moscow. About 1,100 companies from 55 newest vessel in the MSC fleet, and traveled to Izmir. countries are expected to participate in the fair this year, Isabella traveled in two pools that were prepared which will feature exhibits of products from distributors, especially for her. During the two-day journey, two Italian producers, exporters, retailers and wholesalers from the biologists accompanied Isabella and informed guests food sector. about sea turtles, describing the risks that have been taken and the difficulties of preserving biological diversity. For the past three years, Arkas Container Transport (Arkas Line) Arkas Line and Arkas Russia have been participating in the World Food Fair, which is considered The scientists turned Isabella over to their colleagues at to be one of the most influential fairs in the region. The Pamukkale University, who will release her on the world- two companies will meet with exporters and importers in famous Iztuzu Beach, one of three breeding grounds for pavilion 2, hall 3, stand D325. They will provide sea turtles in Turkey. information about the refrigerated containers (reefers) in their fleet, which provide an important service for transporting food like fresh fruits and vegetables.

For more detailed information: www.world-food.ru