This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 6/18/2019

Overview

Turkey’s transportation and logistics sector is one of the country’s fastest growing industries, tripling in value since 2002, with an average 20% annual growth rate.  This growth, combined with Turkey’s strategic location as a bridge between East and West, is creating new opportunities for U.S. exporters of transportation and intelligent technologies.  Turkey is not only a major transit country, but also a key freight destination.  Given Turkey’s increasing population – now over 80 million – and inward migration to larger cities from rural areas, traffic has become a crucial issue, compelling local municipalities to invest heavily in Intelligent Transportation Systems (ITS).  As a result, Turkey has doubled its transportation industry investment budget from 20% to 40% over the last decade.  This sector is dependent on critical foreign technologies such as ITS, thus providing opportunities for U.S. firms.

Turkey’s Customs Union with the EU and its currently stalled application for full EU membership is pushing the transportation industry to consider new investments in Turkey.  Turkey’s current transportation network is below EU-27 standards.  Even if EU accession does not occur in the near future, Turkey has an ambitious goal to comply with all EU rules and regulations, as a majority of its foreign trade is with Europe.

U.S. firms have a comparative advantage in high-tech products; therefore, they are encouraged to take advantage by forming supplier agreements for specialized technologies.

The influence of the transportation sector is expected to increase more in the future, as many highway, railway, and other transportation-related projects are either already underway or expected in order to accommodate the needs of an increasingly industrialized country.  “Combined transportation” may have a big share in the transportation industry and, due to an increase in public-private partnerships, marine and railway freightage may play a larger role in cargo transport.  Turkey has committed to new investments in this sector to keep up with future demand, which is expected to reach the following targets in 2023, the centennial of the Turkish Republic:

  • Foreign trade volume to reach $1.1 trillion, with $500 billion in exports and $600 billion in imports.

  • GDP to reach $2 trillion

  • Transported cargo to reach 625 billion tons.

However, with the current economic situation that Turkey is experiencing, these goals may be too ambitious.  The Turkish Government has typically used the Build-Operate-Transfer (BOT) type of funding for earlier and ongoing transportation projects, and it seems that with the limited resources for foreign funding for the country, BOT is the only way to realize upcoming major transportation projects, including the following:

  • Canakkale 1915 Bridge: to be completed by 2023 on a BOT basis, it will be the longest bridge in the world (3623m), exceeding the Japanese Akashio Bridge rail plus motorway.

  • The Grand Istanbul Tunnel: to be completed in 2020; $3.5 billion; 110m (361 ft) below sea level; 6.5 km (3.7 miles) long and three floors; two roads and one metro line.

  • Canal Istanbul: will connect the Marmara Sea with the Black Sea; an alternative route to the Bosphorus Strait to decrease traffic congestion; 45-50km long and 145-150m wide on the surface and 125m wide on the floor; 25m deep to allow large ships access to the sea.  As a result, Istanbul will be two peninsulas and an island. 

Rail 

The Turkish Government has prioritized improvements in this sector: 

  • Liberalization of the rail system (state will maintain ownership, but private transportation companies will be able to transport cargo in their own wagons).  Three private companies have begun operations in the rail system and more are expected.  

  • 10% share increase for passenger rail and 15% for cargo transportation rail. 

  • “Modern Iron Silk Road” to be completed by 2023 to establish rail connection between Far East and Western Europe. 

  • Total rail length will reach 25,000km in 2023, including additional 3,500km high-speed rail, 8,500km rapid rail and 1,000km conventional rail. 

  • 8,000km of existing rail to be restored and modernized with new signal systems.  

  • Electrification and signal systems, along with renovation of existing lines. 

  • New metro lines/light rail systems/trams in larger cities.  

Air 

  • Planned airports: 8 

  • Terminal buildings: 4 

  • Turkey ranks 9th in the world and 3rd in Europe in terms of passenger volume; 3rd Istanbul airport being built 

Land Transportation (Roads & Highways) 

  • 23,522km of existing divided roads with plans to increase to 37,000 km 

  • 5,748km of highway construction to be completed by 2023 

  • 9,000 bridges/viaducts with total length of almost 600km to be completed 

  • Izmit Bay Suspension Bridge (4th largest in the world with 1,550m-long center span) 

Marine Transportation 

  •  “Three Big Ports along the Three Big Seas” project on the Aegean, Black Sea and Mediterranean aiming for three transfer ports in every sea surrounding the country: 

    • West on Aegean Sea - Candarli port

    • North on Black Sea - Filyos port

    • South on Mediterranean Sea - Mersin port expansion 

  • Container transportation capacity will reach $32 billion 

  • Liquid cargo will reach a capacity of 350 billion tons and dry cargo, 500 billion tons 

  • Turkey will rank among top ten in the world with regard to ship size 

  • Increased combined/multimodal/intermodal types of transportation 

  • Marina capacity to increase to 35,000 ships 

  • Construction of seven new cruise ports 

  • Higher emphasis on sustainability and efficiency through projects like “Green Port” 

Leading Sub-Sectors

All high-technology systems, products, equipment in all modes of transportation, including those related to Intelligent Transportation Systems are in great demand.  Below are some examples:

  • Traffic engineering, management, measurement, control and signal systems

  • Electronic detection, and camera and security systems

  • Variable message, communication and digital information systems

  • Lighting systems

  • Tunnel SCADA, vehicle tracking and fleet management, data management

  • Marine technology: port superstructure, vessel tracking systems, oil spill detection and contingency preparedness, underwater mapping

Opportunities

Web Resources

For further information on this section or for more on potential opportunities, contact:

Naz Demirdoven
Commercial Specialist
U.S. Commercial Service Turkey
naz.demirdoven@trade.gov  
www.export.gov/turkey

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.