Maritime Turkey Market Research Martin Bloem M.A. Sandra van Putten M.A. Assoc. Prof. Dr. Ali Deveci Prof. Dr. Okan Tuna Maritime by Holland series (mostly in Dutch) 1. De Nederlandse Maritieme Cluster: literatuuronderzoek en plan van aanpak economische impact studies 2. De Maritieme Arbeidsmarkt: vraag en aanbod van zeevaartkennis 3. De Nederlandse Scheepsbouw- en toeleveringsindustrie: economische betekenis en structuur 4. De Nederlandse Offshoresector: economische betekenis en structuur 5. De Nederlandse Binnenvaartsector: economische betekenis en structuur 6. De Nederlandse Waterbouwsector: economische betekenis en structuur 7. De Koninklijke Marine: economische betekenis en structuur 8. De Nederlandse Visserijsector: economische betekenis en structuur 9. De Nederlandse Watersportindustrie: economische betekenis en structuur 10. De Nederlandse Maritieme Dienstverlening: economische betekenis en structuur 11. De Nederlandse Maritieme Toeleveranciers: economische betekenis en structuur 12. De Nederlandse Zeehavensector: economische betekenis en structuur 13. De Nederlandse Maritieme Cluster: economische betekenis en structuur 14. Het Maritieme Clustermodel: modellering en scenarioanalyse 15. De Nederlandse Maritieme Cluster: beleidsaanbevelingen 16. De Innovativiteit van de Nederlandse Maritieme Cluster 17. Maritieme Websites en E-Business: een verkenning 18. Maritiem Kapitaalforum: onderzoek naar de werking van de kapitaalmarkt in de sector van maritieme toeleveranciers 19. An International Shipping Company in the Netherlands: the tax perspective 20. E-business in de Maritieme Cluster: visies, strategieën, activiteiten 21. De arbeidsmarkt in de Nederlandse Maritieme Cluster: een overzichtsstudie 22. Leader Firms in de Nederlandse Maritieme Cluster: theorie en praktijk 23. De Koninklijke Marine als maritieme leader firm 24. De Nederlandse maritieme cluster: monitor en dynamiek 25. European Maritime Clusters: global trends, theoretical framework, the cases of Norway and the Netherlands, policy recommendations 26. a Voorschriften voor Commercial Cruising Vessels / 26. b Rules for Commercial Cruising Vessels 27. Monitor Maritieme Arbeidsmarkt 2003 28. Dutch Maritime Research, Development and Innovation Expenditure 29. European Maritime Policy Conference: proceedings 30. Dynamic European Maritime Clusters 31. De Nederlandse Maritieme Cluster: economische Monitor 2006 32. Monitor Maritieme Arbeidsmarkt 2006 33. Monitor Maritieme Arbeidsmarkt 2008 34. De Nederlandse Maritieme Cluster: Monitor 2010 35. De Marine en Marinebouwcluster: welvaartscreatie en innovatief vermogen 36. De Nederlandse Maritieme Cluster: Monitor 2011 37. Maritime Hotspots, final report, 2012 38. Maritiem West Afrika, marktstudie, 2012 39. De Nederlandse Maritieme Cluster: Monitor 2012 40. Maritime Turkey: Market Research Maritime Turkey Market Research Maritime by Holland The Foundation 'Nederland Maritiem Land' (Maritime by Holland) was established on June 27th, 1997 in order to promote and strengthen the Dutch Maritime Sector. The Board of the Foundation consists of A. Kraaijeveld (chairman), Mrs. T. Netelenbos (vice-chairman), R. Paul (secretary/treasurer) and further in alphabetical order, G.G.P.M. van Beers, Vadm. M.J.M. Borsboom, Dr.ir. B. Buchner, ing. K. Damen, E.M. van Dijk, ir. J.J.C.M. van Dooremalen, G. Edelijn, S.J. van der Goot, F. Heinis, Vadm b.d. J.W. Kelder, J.P. Klaver, A. Meijer, A.P.H. Vergroesen, A.A.N. Vink, F.D. Vroon, P. Zoeteman. The director of the Foundation is A. Uytendaal. Published and distributed by Maritime by Holland Study conducted by Bloem Doze Nienhuis Panteia Boompjes 40 Bredewater 27 3011 XB ROTTERDAM / the Netherlands 2715 CA Zoetermeer / the Netherlands T 0031-10-4007140 T 0031-79-3222000 E [email protected] E [email protected] I www.bloemdozenienhuis.com I www.panteia.nl Design/Lay-out Sirene Ontwerpers Zeemansstraat 8 / 30000 ROTTERDAM / the Netherlands T 0031-10-4389282 E [email protected] I www.sirene-ontwerpers.nl Print: Efficiënta Offset B.V. Burgemeester Aalberslaan 78 / 2922 BE KRIMPEN AAN DEN IJSSEL / the Netherlands T 0031-180 - 512522 E [email protected] I www.efficienta.nl ISBN 978-90-820165-3-6 NUR 784 Copyright © December 2013 Stichting Nederland Maritiem Land All rights reserved. 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Permission may be obtained at the following address: Stichting Nederland Maritiem Land, Boompjes 40, 3011 XB Rotterdam, the Netherlands; e-mail: [email protected], website: www.maritimebyholland.com Table of Contents Table of Contents V List of Figures VII List of Tables VIII List of Charts XI Executive Summary 13 Introduction 15 1 MARITIME TURKEY: OUTSIDE-IN 19 1.1 The growing importance of the Turkish economy 19 1.2 A short historical introduction 20 1.3 A maritime tradition 23 1.4 Dealing with differences in Turkish & Dutch business culture 26 2 PORTS OF TURKEY 29 2.1 General developments 29 2.2 Port sector analysis 33 2.3 Port demand forecast studies 47 2.4 SWOT Analysis of Turkish Ports 52 2.5 Recent major developments in the ports sector 54 2.6 Port administration and legal framework of port investment and operations 63 2.7 Opportunities and Recommendations for the investors to participate in Port Business in Turkey 70 3 THE TURKISH FLEET 79 3.1 General 79 3.2 Fleet statistics 81 3.3 Main ship owning companies 94 3.4 Turkish Ro-ro companies 107 4 SHIPBUILDING INDUSTRIES 109 4.1 Introduction 109 4.2 The development of Turkish shipbuilding 111 V Maritime Hotspots 4.3 Shipbuilding statistics 112 4.4 Overview of commercial shipyards 126 4.5 Super yacht industries 131 4.6 Other technology related sectors 138 5 MARITIME EDUCATION & RESEARCH 147 5.1 Institutions 147 5.2 Maritime faculties in Turkey 149 6 GOVERNMENT POLICIES AND MARITIME ORGANISATIONS 159 6.1 National level 159 6.2 Port strategy and policy of Turkey 167 6.3 Industrial policy 176 6.4 Maritime related organisations 178 7 TURKEY AND THE EUROPEAN UNION 189 7.1 Turkey and EU relations 189 7.2 The progress of the negation process on the transport chapter 191 7.3 Instrument for Pre-Accession Assistance (IPA) and Multi-Annual Indicative Planning Document (MIPD) for Turkey 192 7.4 Main sectors for EU support for 2011-2013 195 7.5 Turkey’s priorities in the transport sector 196 8 SWOT-ANALYSIS 199 8.1 Strengths 199 8.2 Weaknesses 200 8.3 Opportunities 201 8.4 Threats 202 9 CONCLUSIONS & RECOMMENDATIONS 205 Annex 1: REFERENCES 209 Annex 2: OVERVIEW OF CONTACT DETAILS OF MOST RELEVANT TURKISH PORTS 211 VI List of Figures Figure 1: Conceptual frame 16 Figure 2: Locations of major Turkish ports and terminals 34 Figure 3: Location of Turkish Main Container Ports 36 Figure 4: Regional distribution of container port traffic 38 Figure 5: Logistics Centres in Turkey 58 Figure 6: Locations of Hub Port Projects in Turkey 61 Figure 7: Current international ro-ro services from Turkey 92 Figure 8: Feederlines Arkas 103 Figure 9: location of 71 shipyards in Turkey 109 Figure 10: location yacht shipyards 131 Figure 11: Organisation of Ministry of Transport Maritime Affairs and Communication 161 VII Maritime Hotspots List of Tables Table 1: doing business in Turkey 27 Table 2: Handling Capacity of Turkish Ports According To the Cargo Types 34 Table 3: Dry Bulk and General Cargo Handling at Turkish Ports Ports (Top 10 Ports and Total Cargo Handling) (M ton) 41 Table 4: Liquid Bulk Cargo Handling at Turkish Ports (M tonnes) 42 Table 5: Crude Oil Import of Turkey According to the Countries and Transportation Modes in 2010 42 Table 6: Crude Oil Import and Export Cargo Handling at Turkish Ports (2005-2011) 43 Table 7: Petrolum Products Handling at Turkish ports (M tonnes) 44 Table 8: Top 10 Liquid Chemical Cargo Handling at Turkish Ports (M Ton) 44 Table 9: Automobile Handling at the Member Ports of POAT- (Units) 45 Table 10: International Ro-Ro Lines To/From Turkey and Their Truck/Trailer Carriages 45 Table 11: Development of Cruise Shipping At Turkish Ports (2005-2012) 46 Table 12: Cruise Ship and Passenger Traffic at Turkish Ports 47 Table 13: Regional Port Demand Forecast Based on Cargo Types (M ton) 49 Table 14: Port Capacity Need Towards the 2023 Considering the Turkish Government’s Foreign Trade Targets 51 Table 15: Privatized of Ports Under the Turkish Maritime Association (TMO) 55 Table 16: Privatisation Process of Container Ports in Turkey under TSR 56 Table 17: Container Port Capacity Expansion and New Container Port Projects in Turkey 59 Table 18: Bulk and General Cargo Port Capacity Expansion Projects and New Port Projects in Turkey 60 Table 19: Operation Licences of Turkish Ports 69 Table 20: Turkish owned fleet >100 GT 82 Table 21: main owners chemical and products fleet 91 Table 22: current fleet of Geden Lines ordered from China, Japan and South Korea (2004-2013) 117 Table 23: Shipbuilding Labour Productivity 125 Table 24: Turkish super yacht order book May 2013 131 Table 25: Types of Maritime Education Institutions and Their Student Capacities in Turkey (2011) 147 VIII Table 26: Higher Education Institutions Offering Education on Deck and Engine Officers in Turkey in 2011 147 Table 27: The two year Vocational Schools of Higher Education (Junior College) HND Education MET Institutions Leading to Unlimited Licenses Deck/Engine Departments’ Annual Recruitment Capacity 148 Table 28: