Pacific Eurasia, which has signed important agreements and transports between countries since 2019 in order to realize the dream of the Iron Silk Road from Asia to Europe, enters air and sea transport in 2022 and directs logistics with all modes of transport, opens to the public. Demand will be collected on June 6-7 for the public offering, which will take place under the leadership of the Halk Invest consortium.
A total of 34 million TL nominal value shares of Pacific Eurasia, which is preparing to make investments in employment, equipment and infrastructure in order to provide quality and economical service to all its customers, will be offered to the public. According to the prospectus, 20,24 percent of the company will be offered to the public with the public offering of the said shares.
“After the railway, we started air and sea transport”
Fatih Erdoğan, Chairman of the Board of Directors of Pacific Eurasia, said that since the company was founded in 2019, they have taken important and pioneering steps in the field of railway transportation, and thus they have made a significant contribution to the revival of the Iron Silk Road Project, which stretches from China to Europe. Fatih Erdoğan said that they started to provide services in the field of air and sea transportation in order to meet the other transportation needs of the existing customer portfolio, and that they aim to become one of the strongest players in the logistics sector with the public offering.
“We are growing above the industry”
Stating that the logistics industry was adversely affected, first due to the Covid-19 pandemic and then the Russia-Ukraine war, and the freight prices increased, Fatih Erdoğan said that despite everything, the logistics continued uninterrupted in the world and the industry grew rapidly from year to year. Expressing that Pacific Eurasia has achieved a good growth momentum since the first day it was founded and has grown above the sector average, Fatih Erdoğan said, “We have both made important investments in this process and started maritime and air transportation. During the epidemic, we gave an important test not only in our country, but also all over the world as the logistics industry.” said.
Stating that the importance of railway logistics has increased even more with the EU's European Green Consensus with the goal of being the first climate neutral continent in 2050, Erdoğan said, “As Turkey, the green transformation of the Turkish economy and industry is very important in order to accelerate the low-carbon green economy. An action plan was created by official institutions in order to protect and strengthen competitiveness in exports to third countries, especially the European Union, and to support the railway sector. Within the scope of this plan, it was envisaged to increase the share of railway transportation and decrease the share of road transport. This shows us that railway logistics will gain more importance in the coming period.”
“IPO proceeds will be used in investments”
Fatih Erdoğan stated that 40 percent of the income to be obtained from the public offering will be used for Railway Train Operation (DTİ) investments, 30 percent for terminal investments, 20 percent for airline and other mode investments, and the remaining 10 percent as support for working capital. . Fatih Erdogan said the following about the planned investments:
“As a company, we applied in February 2023 to obtain a Special Train Operator Certificate in order to increase the locomotive capacity in Turkey in railway transportation and to eliminate the locomotive constraint in international transportation. Thus, we are a Railway Train Operator (DTİ) and plan to serve our customers with our own locomotives and trains. In maritime transport, we aim to expand our fleet and increase our capacity by 2023 times by the end of 2025, in addition to our first ship that we acquired in 5 in order to increase our ongoing transports. We plan to grow in air cargo transportation, which we started in Ankara head office, by making the necessary personnel and equipment investments in our offices in Istanbul and Izmir in 2023. In addition to the railway, in the continuation of the investments we plan to make in sea and airways; Within the framework of the growth that will occur in the transportation volume, we also anticipate making terminal investments in order to provide intermodal and multimodal services to our customers.”