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31 Aralık 2020 Perşembe - 11:02

Fatih Şener, Head of Strategy and Business Development in International Transporters Association (UND): "The Cost Of The Turkish Carrier Is Different From The West"

Nuray Pekcan, Editor-in-Chief of My Truck Magazine, asks Fatih Şener, Head of Strategy and Business Development in International Transporters Association, regarding the transportation of the Covid-19 vaccine, the logistics sector, problems at the border gates and foreign capital. Touching on the importance of the sector, Şener said that; “It is a logistic sector as well as a backbone that actually carries all sectors on its back.”

Fatih Şener, Head of Strategy and Business Development in International Transporters Association (UND):   The Cost Of The Turkish Carrier Is Different From The West



Details of our interview:

It is said that “If you are curious about the state of the economy, then look at the roads, are there trucks driving on the roads! If yes, then everything is good in the country.” We mainly look at the international dimension; because wealth comes with the money from abroad. The value of can be understood in the absence of it, they say, let’s assume that we remove Turkey from the map. You see the value of Turkey when you remove it.  We have a very serious potential in terms of logistics. Recently, this has started to be understood more. Logistics schools were opened, infrastructure works such as the world's largest airports and double roads were carried out. There are some legislative developments in the superstructure. So if you look at the international dimension of logistics, in fact, the logistics in Turkey is very dependent on the general economic situation in Turkey. We can use our logistics capability as a leverage in the development of the country. This should become a national strategy in Turkey. "

"Turkey's Does Not Have the Logistics Infrastructure to Carry The Foreign Trade"

“We are developing with export. Turkey does not have the logistics infrastructure to carry the foreign trade. Turkey do not have enough transition certificates to reach other countries. For example, we have to make about 40 thousand trips to Russia annually, but our number of certificates is one quarter of this. Therefore, export is made with difficulty. In other words, we are looking for ways to go to Russia mainly through Hungary, Bulgaria and Romania. We have to go through Hungary to reach Europe, Germany, and there was no certificate until yesterday, but the agreement was signed, it will be resolved in 2021. We are trying to go to Germany via Bulgaria, Romania and Moldova. There is no certificate, no quota and visa infrastructure that will carry Turkey to foreign trade. "

"If We Can Pass 2 Thousand Vehicles Through Kapıkule, Kapıkule's Problem Is Solved"

 "Since Kapıkule's capacity was not enough, 2727 trucks passed in 24 hours. 2 thousand 87 trucks were also waiting. While 900 vehicles were released last year, we increased this by 20 percent with the efforts of our Ministry. Now we have reached the numbers of thousand 50, thousand 100, but 2 thousand 87 vehicles are waiting. So there is almost 40 kilometers of queue. Around 400 vehicles pass to Iran via Gurbulak, 400 more are waiting. Around 500 vehicles have passed from Sarp to Georgia, 700 vehicles are waiting. Queues are also getting longer because more exports go on Fridays and Saturdays from Turkey. 2 thousand vehicles pass via Habur and if we can ensure that 2 thousand vehicles pass via Kapıkule, the problem of Kapıkule will be solved. "

"We will take an action that will attract the attention of the public"

“TOBB actually renewed all the gates 18 years ago. Gürbulak was pulled down and rebuilt for the first time in the history of the Republic with the renovation of UND. In fact, our gate must allow the pass of 100 percent more vehicles than Kapıkule. Of course, the gates have two sides, when we talk to our side, it is called "the cause is Bulgaria". Bulgaria says we are the cause. We are a little helpless there, but we will take action that will attract the attention of the public. "

"There is a Capacity Problem in Kapıkule and We Are Looking at It Desperately"

"Turkey at the same time have the power to make a giant suspension bridge and two tunnels. There is a capacity problem in Kapıkule and we are looking at it desperately. Normally, there are  9-10 platforms. For example, when entering the Bulgarian side, there are 8 platforms and 2 Bulgarian passport points. Since the passport point can be passed in a very short time, they say 'the other 8 platforms will do the work”, but when Bulgaria started checks with carbon dioxide at the passport point and for illegal people, things got longer and this leads to piling up. So we need to increase the capacity there. "

"It is no longer a problem for us to pass through Hungary"

“Transporters working to the west are competing with the world, so their technology is very good. They are suitable for ADR formation in dangerous goods transportation. Since they comply with all international regulations, their vehicles are very well maintained and controlled. In fact, we are not lagging behind the western carrier; however, there are some restrictions based on the flag. For example, we have about 36 thousand certificates for Hungary, but the need may be 100 thousand. There were problems, certificates were not enough, but the agreement was signed. Hungary gave 110 thousand certificates, it is no longer a problem for us to pass through Hungary. "

"It Is Needed to Create A New Alternative Instead of Being A Complainant"

"According to the statement of our Minister of Commerce, we export 24 billion dollars of logistics services in 2019. Approximately 8-10 billion dollars of the turnover decreased slightly due to the airline. However, road and sea transporters continue to do their work. Actually it means closing Turkey's current account deficit. There are two ways to go west: one by road and the other by sea. Transporters set up shipping companies. This company was sold in 2006, bought by a fund, KKR. Then it was bought by another fund. 3rd customer, the northern DFDS, has become a major Roro operator. It was also difficult for them due to the pandemic; There was no carrier to go or our transporters who could not go because there was no trip. However, carriers are said to have problems with Roro prices. Instead of complaining, we need to create a new alternative. So you either need a new Roro or you have to drive by road. After a point, the free market economy will do what is necessary. Competition is good, this is for every company. ”

"Cost of Turkish Transport Is Different Than Westerners"

“The cost of Turkish transport is different than western ones; more than what we paid on the way. The Turkish side pays Bulgaria 86 euros, the Bulgarian side does not. In other words, if it takes a load from Istanbul to Germany, it earns 86 euros more than us. 50 percent of our vehicles spend their time abroad. We take out traffic insurance for our vehicles, and we also have an insurance called green insurance when going abroad. Approximately one thousand dollars is for our insurance abroad, and one thousand dollars is our domestic insurance. But a driver of Bulgaria gets an insurance both for Turkey and abroad for $ 600. The UK has not collected the motor vehicle tax from its carrier for this year, which is a support. The costs continued during pandemic process in Turkey. Motor vehicle tax should actually be arbitrarily collected from vehicles that enter the traffic, it is funny to collect tax from a commercial vehicle that earns money and pays tax from the money it earns. There are examples in the world, but this practice needs to change. "

"No Freedom on Inequality, Let's Equalize the Conditions"

“Logistics service exports are worth $ 24 billion, more than automotive exports. Approximately 18 billion of 24 billion are already imports, engines, gearboxes… But logistics service is not like that, clean money. So this is more valuable and the state should look at it this way. In Turkey, the shippers asked for a support from the Ministry of Commerce by saying “support the exporter, so they can do trade and we can carry”. There is no habit of saying 'support me' in the industry. We do not say freedom, we say equality. There is no freedom on inequality, let's equalize the conditions. Our driver is sacrificing , he succeeds, but there is an inequality. At no point, it is not right to bring world companies into the country in a more advantageous way. Increase the competitiveness with the companies in the world, equalize the conditions and then enter the country. "

"The State Should Stop Taking From Us Before Giving Us"

“The state should stop taking from us before giving us; even this is a contribution in itself. For example, you have a vehicle card for which you pay 500 lira for each vehicle to the state. Our company, which has a thousand vehicles, pays 500 thousand liras. The vehicle card is not printed, it is a piece of paper you take out from the printer. You show it under police control, then the police looks at the computer for accuracy. If he is looking at the computer, why am I getting this paper? Why am I paying 500 liras? This is the case for all countries. We say, "Don't ask from us what they cannot ask from the foreigner." If you go to customs after 17:00, it charges you overtime. When you ask, "Do you get from a foreigner?" they reply by saying “No, if I get from foreigner, you will also have to give when you arrive at Serbia.”  Iran does not receive overtime wages from its own citizens or even anyone, but from us while passing through. It is told us that, "You are giving it in your own country, why not give it to us."

"Now Turkey's Infrastructure Does Not Allow For Transport at -70 Degrees"

"At the moment Turkey's infrastructure does not allow for transport at -70 degrees, not even in the world. By forcing the conditions, you brought the vaccine by plane at -70 degrees in a very special way. How will it be distributed? Probably, the vaccine will be brought to Istanbul, then the people will go to the vaccine, not the vaccine will be delivered to people. The only vaccine that requires -70 degrees is the one in Germany, I think for this, they continue to seek to preserve it at temperatures below -70 degrees. Otherwise, there will be serious problems or cooler manufacturers will deal with this issue first. Maybe the Chinese vaccine will overcome them because of this feature, but a solution will be found for the Pfizer vaccine. The state did not inform us about this issue, but the world is looking for an answer. Apparently, cooling technology has never needed such a degree to date. First of all, they must have pressed the button for the technology to carry and cool it. "

"It is Necessary to Invest in Fast and Cheap Goods Transportation Urgently"

“This country has an economy, it produces and sells it abroad. Everyone does a job, but there is also a national side. Turkey's logistics infrastructure, maritime, rail, road and air dispersion was stable. So that means high logistics costs in Turkey. If you look at road abrasion and renewal costs, the railway transportation must be slightly increased in Turkey. But there is little investment in railways in Turkey focused on passenger transport. In Turkey, passenger transportation is done by one way or another. There is an urgent need to invest in fast and cheap goods transportation. We have to start the double railways as soon as possible. So overall production costs in Turkey and in the world market will increase the competitiveness of Turkish products. When the competitive power of Turkey increase, Turkey will do export and will develop."

"The Capacity of the Country's Exit Ways Should Be Good"

 “The Republic has built agriculture, an important industry. We need to develop this country by exporting them and earning foreign currency. For this, the capacity of the country's exit ways should be good. We need enough gates, and after opening the gates, we need to open the route on the roads. Ministries of Turkey should know all our logistic troubles. When there is a request from any Ministry of any country, it should be able to say 'solve this point, too'. Because the ones, who know that economy will develop with trade, do create artificial difficulties in Turkey and they do it mostly on highway. All Ministries must pave the way for exports and these problems of the sector must be resolved. "

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