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ICI Assembly Hosted Cahit Turhan, Minister of Transport and Infrastructure

24.07.2019
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Istanbul Chamber of Industry (ICI) July ordinary Assembly meeting was held on 24 July 2019 in Odakule Fazıl Zobu Assembly Hall with the main agenda of “The importance of communication, transportation, infrastructure and the projects which are the main elements of our economy in terms of global competition and our industry”. Cahit Turhan, the Minister of Transport and Infrastructure participated in the Assembly meeting chaired by Zeynep Bodur Okyay, ICI President of Assembly as a guest.

Telling that Türkiye has taken place in a key point within the transport systematic of the world in the speech he made for the Assembly members in the meeting where Hasan Büyükdede, the Deputy Minister of Industry and Technology participated in, Turhan touched upon that since they have taken place on significant trade corridors in a points where three continents intersect with each other, Türkiye serves a natural logistic center in some way. Turhan stated that Türkiye serves as a global logistics center not only between East and West but also North and South. Expressing that the industrialist know better what all these mean, Turhan stated that if the manufacturing is the first step for an industrialist, then reaching it to the market in the safest and cheapest way is the second step. Turhan recorded that the most fundamental common point of all industrially-developed countries is that they possess a modern transportation and communication infrastructure.

Ulaştırma ve Altyapı Bakanı Cahit Turhan

Minister Turhan stated that: We have lots of work to do in transportation and communication. Istanbul is of key point in such expenditures. Because not only our industry’s and our nation’s heart beats here but also the world’s heart beats here. Therefore, Istanbul deserves the best things, you deserve the best things. So, we all should shoulder responsibility. Our duty is to pave the way for you and overcome the challenges together. We are determined to strengthen the transportation and communication infrastructure of our country and add the new ones to our major projects. As long as the wheels are turning and our nation is smiling.”

Drawing attention that Türkiye has reached to 1,5 billion of people and 7,5 trillion dollars of trade volume through a-four-hour-flight in the speech on the Assembly agenda, Erdal Bahçıvan, Istanbul Chamber of Industry Board of Directors Chairperson stated that: “Our success in highway and airline transportation could not be realized in maritime and railway transportation. Privatization of TCDD should be completed as soon as possible. With the increase of the rate of railway transportation in export and transportation, our all sectors can get cost advantage and ensure healthy and quality transportation, especially the automotive sector. Realizing the transportation of the agricultural products to the major markets by the ships coming from the south can support the struggle against the inflation.” and added that: “Cities are always alive at nights in terms of transportation in the developed countries.” As Türkiye which cannot use night in transportation sufficiently, we might contribute significantly to our economy if we take a step in this sense.”

ICI July ordinary Assembly meeting was opened by ICI Assembly President Zeynep Bodur Okyay. Okyay briefly mentioned that:

We all know that we should make the qualified manufacturing economy prevailed for Türkiye to move forward for its targets with safe steps in this challenging geography. We are in need of a new operation system including a finance sector supporting the market, strong industry and manufacturing constantly. We are witnessing a period when the dynamics of manufacturing, trade and globalization go through a radical change because of numerous factors, especially digitalization. Global strength ecosystem going through a chaotic process full of contradictions are experiencing a different and new balance search. Therefore, a new “operation system” in a global scale is a obligation for us, rather than being a need anymore. Reciprocal commitment brought by globalization is transforming into a connection increased with digitalization. So, creating and then sustaining a trust is of critical importance in all ecosystem relations in this new ordinary which cannot be predicted in any sense. On the one hand, we should maintain the investments which have already been made and on the other hand, we should move the safety of supply chain to the highest level to draw new investments.”

Then, Zeynep Bodur Okyay, the ICI President of Assembly invited Erdal Bahçıvan, ICI Board of Directors Chairperson to the rostrum to make his speech about the main agenda item. Bahçıvan stated they hoped that the decisions to extend the festive holidays which has turned out to be a habit may be taken into consideration once again and these unplanned behaviors which create a significantly inefficiency for reel economy may be ended. Bahçıvan emphasized that the year-end-target for 15,9 percent determined for YEP seems achievable but it is of vital importance to realize the structural measures against the price stability by keeping in mind that the fighting against the inflation is a long-run process.

Wishing success for Murat Uysal, the new chairperson of Central Bank in his new duty, Bahçıvan expressed that they attach great importance to the further contributions of the Central Bank’s price stability for the financial stability and economic growth.

Stating that the priority towards the manufacturing industry in Eleventh Development Plan announced to the public in this month is of great value for them, Bahçıvan expressed that it has been foreseen that Industrialization Executive Committee to be established within the Presidency within the scope of the Plan may undertake the duty to develop models on prioritizing the public to take an active role and support the local manufacturing in development of the common strategies regarding the industrialization policies.

Providing the information that there have been various steps to be taken to support the productive investments, especially the most prioritized sectors for the following five-year-period in the plan, Bahçıvan recorded that including the target of strengthening Development Bank in terms of capital and function, which was a long-term-demand of ICI is very pleasing for them, the industrialists.

Bahçıvan emphasized that as Istanbul Chamber of Industry, they are ready to shoulder the responsibility to contribute to all works to be realized to support the competition capacity of our industry, increase the growth quality and improve the opportunities of access to the financing within the scope of the Plan.

Pointing out that the communication between machinery in the digital transformation of our industry firms is drawing attention, Bahçıvan told that the developments experienced in e-trade have increased all past habits of the consumption.

Drawing attention that one of the most significant investment fields for countries is the informatics infrastructure, Bahçıvan stated that the works for communication and telecommunication infrastructure conducted in the coordination of are of critical developments to lay the foundation of our industrial and commercial transformation. Bahçıvan expressed that: “There has been another development: The volume of world trade has been growth in the last years with the opportunities brought with the globalization. The growth in the trade volume increases the transportation activities. Fast and reasonable cost delivery is of great advantage for competition in this challenging competition conditions. Therefore, logistics sector and transportation which can be considered as the foundation of this sector turn out to be the integral part of the global competition. Türkiye can experience further developments thanks to the policies which meet the transportation and communication needs complying with the changing conditions and developing in more effective way and which increase the efficiency in the coordination in such fields.”

Expressing that our country cannot realize the success which it has realized in other field in the last years in maritime and railway transportation in the same level, Bahçıvan said that the maritime and railway transportation is of utmost significance for the Ministry.

Touching upon that the railway transportation is a vital indicator of development levels of countries, Bahçıvan reminded that the railway transportation is the leading transportation tool mostly preferred in the world not only because of its cost advantage but also its service to provide the transportation in a healthy and quality way. Stating that even though the projects launched and developing in our country in the last years are pleasing, the development level in such field is behind the development level in the highway and airline transportation, Bahçıvan expressed that the share of railway transportation should be increased not only in export but also in the domestic transportation and freight shipment.

Bahçıvan continued:

“Especially the integration of OSBs with the railways will contribute to the decrease in the cost for our industrialist and pave the way for them to participate in the local and global markets. Besides, I would like to emphasize that the realization of high speed train project in Trakya region included in the investment program of our Ministry is of vital importance for the region industry especially transportation of the labor force. I would like to underline that the privatization process of Turkish Republic State Railways should be completed as soon as possible so that the railway transportation can develop in our country.

Emphasizing that even though our country is surrounded by sea, we cannot claim to benefit from the maritime transportation effectively, Bahçıvan stated that the maritime transportation does not only provide cost advantage just like railway transportation does, but also decreases the rate of wastage in the products thanks to the healthy and quality shipment. Giving an agricultural example, Bahçıvan expressed that the south region comes to the forefront in the agricultural production especially and meets the product needs of major cities, especially Istanbul; however, mainly using the highway in transportation of the products might cause high rate of wastage in this process. Explaining that if the transportation is realized with big ships equipped with cold air infrastructure will decrease the costs and prevent the wastage in the products in the high rate, Bahçıvan expressed that this will make a great contribution to the fight against the inflation in our country.

Stating that there have been challenges in the transportation from Istanbul to Trakya which has turned out to be new residential area for the industry in time, Bahçıvan explained that the especially inadequacies in highway exits of organized industrial sites cause high rate of time and monetary losses. Telling that there has been a need to establish connection roads from highway to OSB, Bahçıvan recorded that the railway connections of OSBs should be completed to ensure the comfortable transportation of the labor force to organized industrial sites.

Expressing that the taxes on the energy and fuel weaken our competitive capacity by affecting our industry directly, Bahçıvan said that there has been a complicated situation here and both consumer and producer pay the same tax. Bahçıvan stated that the taxes on the fuel and energy should be discussed once again to increase the competitive capacity of our industry and to create a competition advantage in the logistics.

Bahçıvan said that: “Cities are always alive at nights in terms of transportation in the developed countries.” We cannot use the night sufficiently even though we are going through a period where the resources should be used properly and effectively. I believe the steps to be taken in this sense will make a great contribution to our economy.”

Cahit Turhan, Minister of Transport and Infrastructure taking to the rostrum said that the transportation and communication is of vital importance for this era and in case of any little crack or breakdown on the chain, everything varying from trade to daily life are affected, even gets hairy. Touching upon that what is important is to have an infrastructure to ensure the operation of this chain in the long-run and updating and strengthening this chain in compliance with the conditions of the trade and era, Turhan expressed that the geography includes both advantages and disadvantages and Türkiye is a lucky one in this sense.

Telling that Türkiye has taken place in a key point within the transport systematic of the world, Turhan touched upon that since they have taken place on significant trade corridors in a points where three continents intersect with each other, Türkiye serves a natural logistic center in some way. Turhan stated that Türkiye serves as a global logistics center not only between East and West but also North and South.

Expressing that the industrialist know better what all these mean, Turhan stated that if the manufacturing is the first step for an industrialist, then reaching it to the market in the safest and cheapest way is the second step. Turhan recorded that the most fundamental common point of all industrially-developed countries is that they possess a modern transportation and communication infrastructure.

Turhan continued:

“When it comes to the industry, railway transportation takes a step forward. Because decreasing the damages to be resulted from the transportation to affect the next generations such as global warming, taking more share out of the global competition in line with the fast changing needs, decreasing the transportation costs and making time saving makes railway transportation appealing. The railway which has already been neglected should raise on its feet again so that the advantages born by the geographical position of our country which serves as a bridge between Asia and Europe can turn into an economical and commercial advantage. We have handled our railway through a new understanding to ensure a balanced distribution between the transportation modes just like in the developed countries thanks to the leadership of our President and support of our government. When all of 21 logistics centers which will turn Türkiye into the logistics center of its region start to provide service, we will have gained open area, stock area, container stock and handling areas for 13 million square meters with transportation opportunity for 35 million tons for Turkish logistics sector. Upon the completion of the branch lines and logistics centers to serve to the important load centers especially petro-chemistry facilities, manufacturing facilities for automotive industry, port, OSB and mine sites, our railway will have a position to take higher part in transportation.

Emphasizing that the industrialists know the meaning of this better, Turhan underlined that if manufacturing is the first step for an industrialist, then raw material supply and reaching it to the market in the safest and cheapest way are the second and third steps. Turhan told that are continuing to establish branch lines to ensure the railway connection to the centers which has high load potential.

Touching upon that there are 281 branch lines of which total length is 433 km, Turhan explained that they have planned to establish branch line for 294 km totally for 36 OSB, private industrial site, port and free zone and 36 manufacturing facilities in the following period. Turhan added that they have established railway connections to the ports to ensure the fast and economical transportation of the loads. Stating that there has been railway connection for 85 kilometers totally for 10 ports and 4 landing stages, Turhan expressed that they will establish connections for 7 significant ports (for 25 km) such as Filyos, Çandarlı, etc.

Turhan continued:

“As you all see, we have lots of work to do in transportation and communication. Istanbul is of key point in such expenditures. Because not only our industry’s and our nation’s heart beats here but also the world’s heart beats here. Therefore, Istanbul deserves the best things, you deserve the best things. So, we all should shoulder responsibility. Our duty is to pave the way for you and overcome the challenges together. We are determined to strengthen the transportation and communication infrastructure of our country and add the new ones to our major projects. As long as the wheels are turning and our nation is smiling.”

ICI Assembly Members taking to the rostrum following Minister Turhan shared their opinions on the agenda and directed their questions to Minister Turhan.