Turkey transport and logistics sector of the major professional organization of International Transport and Logistics Service Providers Association Chairman Emre Eldener http://www.yesillojistikciler.com’dan He told Şenel Özdemir the prominent problems of the sector. UTİKAD President Eldener listed the issues on the agenda of the logistics and transportation sector as follows: TIR queues in Kapıkule, physical control of transit loads, CIF application in air cargo, TIO Regulation, Istanbul Airport, warehouses, import loads, Logistics Performance Index ...
TIR TAILS EFFECT EVERYONE THAT WORKS OUT OF FOREIGN TRADE
What is important topics featured 5 of the logistics industry in Turkey today, according to you?
The first issue; congestion in export customs. Especially in Kapıkule, which is one of the largest land customs in the world, the two-day wait negatively affects not only the logistics sector, but also all exporters, and everyone engaged in foreign trade. I recently went to Bulgaria by car. You can feel the negativity in this matter when you see the tail of up to 15 kilometers of trailers starting from the center of Edirne to Kapıkule. The same thing happens on the Bulgarian side. In other words, our vehicles are delayed in imports. A TIR chauffeur can quit profession if he experiences this twice. As a matter of fact, there is a serious problem in finding drivers under the age of 35 on the international transportation side. This problem needs to be resolved. Because we make in terms of Turkey shorten transit time of delivery we are much more competitive. Waiting at border gates delays shipments and makes them expensive. We collaborate with the International Freight Forwarders Association (UND). It is necessary to act as one voice anyway. However, as UTİKAD, we have brought this issue to the agenda at the highest level before the Vice President of the Republic, Fuat Oktay, considering that it concerns 4-5 ministries. We sent him a file on the subject, explained it with examples. We think that a positive path will be taken even if this issue is not fully resolved in the future.
Why the long queues experienced in TR Agility stems Did you think Turkey from Bulgaria did you?
For me, this problem stems from problems on both sides. The queues for the duty-free fuel oil supply, the time taken for the customs treatment, the lack of pump number, the extra security measures due to the recent refugee problem and similar issues, The Ministry of Interior, Ministry of Transport, Ministry of Commerce, Ministry of Agriculture and Environment There are many different ministries. In order for the problem to be solved, it is necessary to do the same work on the Bulgarian side, not only the Turkish side. In this respect, Sabancı University conducted many different simulations on the subject. We also shared these with the authorities.
Do you think TIR tails also affect investments?
This problem can affect even the investors to invest in Turkey. Because an investor to a point where delivery times in Europe in any way a part of who can not hold his hand to produce, Turkey may choose instead to invest in the Balkans.
PHYSICAL CONTROL OF TRANSIT LOADS
What are the other issues on your agenda?
The second issue is the installation made our transit through Turkey. There is a physical control condition of goods in general, both in ports and in transits made as port + road or highway + road. So although incoming goods will never do so in Turkey to be a transit entry is checked physically by the customs. We think that it would be better to carry out checks only on a documented basis if there is no notice. Because Turkey will enter cost of goods and means of physical control delay the process. Because customs officers must do this work. The limited number of customs officers, who are already limited, also has to deal with these jobs and cause delays in our export operations. In addition to this, it means that the Turkish ports or customs will be used less in transit, since it brings the cost disadvantage. So maybe that's why we lose jobs to Piraeus Port of Greece and Port Said Port of Egypt. However, we can easily make these transits in shipowners in Mersin or Izmir. On the other hand, there is a 3 shift work plan of the customs in the export leg. We think this will come into effect in a short time and will be very useful. We try to remove the barriers to exports.
EK ISTANBUL AIRPORT WILL BRING US OTHER OPPORTUNITIES “
Our third subject is the transition to the new airport. Although there is an opening on October 29, the real transition will take place on December 31. On 31 December, UTİKAD will be of interest to its members very soon. We have a member who handled almost the entire structure because we like maybe 95-96's percent of air cargo traffic in Turkey as UTIKAD. For this reason, we are in direct and one-to-one contact with both IGA and airlines. A new cargo agency building was built. Space allocations started, contracts are signed. As of the end of the year, the agencies will begin their transactions with their own staff in the offices they have rented. Istanbul Airport will bring us other opportunities. First, there is a slot problem at Atatürk Airport; that is, new flights are not allowed because the airport operates at maximum capacity. With the introduction of Istanbul Airport, it will look for space and slot facilities. Due to the principle of reciprocity slots to airlines wishing to fly to Turkey places and opportunities that can be offered. For example, in China, Turkish airlines will be given much more targets and opportunities to fly more frequently. This will increase the supply of the new airport will increase competition and supply and in conjunction with these new airlines flight to Turkey. I think this will be reflected in prices and service. In other words, importers and exporters will definitely be profitable in the medium term. Time will of course show this, but our estimates are in this direction.
Our fourth topic; There are nearly 1000 warehouses in Turkey. They are certified and 580 C of customs duties for goods from the warehouse in Turkey should be given a certain rate guarantee. Either it is an importer or a warehouse operator. When we look at it, this brings a requirement of 3 billion TL guarantee letter to all warehouse companies with a rough account. However, each warehouse has already provided 100 thousand Euros of collateral in addition, and 75 thousand Euros of lump collateral. In other words, 175 thousand euro guarantees of the warehouses are kept at the customs. On top of that, asking for further guarantees is now increasing the problem of the letter of guarantee in the financial markets.
Now, we have given TL guarantee for the goods that come in foreign currency. Then, our guarantees melted with the increase in foreign exchange. When there is no guarantee, our warehouses remain empty and the importer cannot find a place to lower his property. We saw that this problem would be solved in the draft sent to us from the Ministry of Commerce. I think it will be enacted in the coming period and it will provide great convenience to warehouses and importers. This means that import transactions will also be cheaper when at least pulling goods from warehouses.
CIF SUBJECT OF AIR CARGO
So what's the fifth issue?
Our fifth topic is CIF on air cargo. Taxation was made on the related price. In other words, by adding insurance cost and freight on the own cost of the goods, the resulting tax was taxed. For example; There is a book used by airlines. This is a reference book created for airlines to use when they load each other. Nobody uses it. For example, in that book, the Shanghai-Istanbul freight is $ 8 per kilo, but in fact we bring goods from Shanghai to Istanbul for $ 3 per kilo. Customs does not take into account the freight bill we present, but adds 8 thousand 300 dollars from 2 dollars x 400 by looking through the book. In other words, customs collected the tax of a freight that has not been paid for years. There was a great injustice here. This situation is resolved. Taxation is now made by adding the freight amount to the total cost of the freight invoices. UTİKAD has done a very serious study on this matter. We have received many thanks from both the Customs Brokers Association and foreign trade companies.
OR 1 PURCHASES TIO REGULATIONS BY JAN 2019 “
Is there anything other than the five points that you count?
Another subject of ours was to legalize the sector especially the transportation organizers. At this point, the regulation of transport affairs organizers was prepared. We prepared this by working with the combined transport and hazardous materials general directorate. A draft that the industry generally accepted appeared. It has already come up as a regulation. It came into effect on November 1. Here, transport organizers will receive an R certificate. The price of this R document was 438 thousand TL, which was previously incredibly high. As a result of the negotiations we had in the ministry, we reduced it to 150 thousand TL. As of January 1, 2019, the Transport Affairs Organizers (TIO) Regulation will be put into effect. Companies that want to work as TIO will have this certificate by paying 150 thousand TL if there are no R documents in the past and they will be legalized before the state.
L MOBILITY STARTED IN ANTREPOLARS “
Importance of imports is also on the agenda. Why do you think that's why?
The decrease in imports is due to the exchange rates and the lack of market. Because people didn't know what they were going to sell out of the warehouse. However, as of last week, goods started to be drawn from the warehouses. Gradually, the market was shaping up and stock didn't go away, so everyone used it. Many warehouses are completely locked due to the density of materials and cannot accept goods. As for the collateral obligation I have already mentioned, the collateral is already full, so the warehouse is also full. Because of what collateral is not able to get the goods nor import is done only in the warehouse costs and everything is standing. Mobility began in the warehouses this week. I'm hoping this will be continuous.
”THE EXPORT FREEDOM IS EXTREMELY IMPROVED AS IT IS NOT IMPORTED“
At present, we are facing another problem especially in road transportation. Export freights rose too much due to the lack of imports. It is our customers that eden As long as I get my property today, I will pay the freight back to you. Ece Or the fact that we could never find the return load, and brought the vehicles empty, we had a significant amount of colleagues. Import-export imbalance is not a general situation of the logistics sector. Under the normal conditions of export, the price they pay for the European cargoes per vehicle is now paying more than the 1000 euro. Exports are expensive and we have nothing to do as transporters. Because it's the market.
It is not possible to make money on highway imports. In the case of exports, you partially compensate imports. In addition, your TL expenses may be reduced for a temporary period of time due to the rise of foreign exchange. But in the end, when the inflation is in question, those gains in the first salary adjustment are eliminated. We have a confidence gap in the market before exchange rates. If I close this gap, I think there will be more shopping.
“WE SHOULD BE IN THE FIRST 20 OF THE LOGISTICS PERFORMANCE INDEX”
I want you evaluate Turkey's place in the World Bank Logistics Performance Index. This year it took place in Turkey, described the index # 47. Do you think Turkey should be in the MATCH?
We are not where we should be in the true sense. While we were waiting to enter the first 15s, we completed 2018 in 47th place. We should definitely be in the top 20. Very urgent measures to be taken, by rendering more efficient the logistics process in Turkey, the costs need to be reduced. This is a questionnaire and its objectivity can be discussed, but its effect is high. We think that the investor will look at this index. This is how the government sees it. It will surely help us to be as high as we can be. In order to conduct a fair performance index study, as UTİKAD, we made suggestions to those who made the Logistics Performance Index and the government. In the light of these suggestions, I think some healthier surveys will be conducted in the coming years.
“LET'S TRANSFER THE ISTANBUL AIRPORT OFFICE RENTALS TO TL”
In one of your speeches, you mentioned the high office rents at Istanbul Airport.
We will pay 100 euro per square meter of rent per month. In the most central locations in Paris, you rent many places for 100 euros per square meter, ie 700 TL. We rent a 15-20 square meter office in any building of an airport for this money. We said at least let's convert this to TL. We have not been able to achieve positive results so far.
”TWO DAYS OF THE FUTURE OF THE LOGISTICS SUMMIT OF THE FUTURE HAS FILLED İ
Lastly, in September, you organized the Future Logistics Summit as UTİKAD. The logisticians' interest was very high. Are you considering traditionalizing the summit?
Although we were talking about the fire in the markets or something, we organized the Summit of the Logistics of the Future was an organization entered by giving money. We've received great demand. Two days in advance, we've filled the quota. This is an indication of a very serious interest for people in terms of strategy and curiosity. In order to minimize the human error in the sector, we think machines should be more involved. In general, digitalization will be the center of our way of automating the way we do business. We want to make this organization traditional. Because our top sponsors were incredibly satisfied. Presumably, we will do this organization next year.
Source: I yesillojistikciler.co