The innovation of the Turkish overseas supply centers will ensure the rapid flow of exports and the penetration of products in the international supply chains at low cost, thus serving the sustainable development of exports, according to an expert.
“Logistics centers will also help us strengthen our capabilities in e-commerce abroad”, said Turgut Erkeskin, chairman of the Logistics Business Council of the External Economic Relations Council (DEIK).
Erkeskin said the centers would boost Turkey’s export performance in strategic regions such as Africa, the Americas, Europe, Russia and the Far East.
Citing President Recep Tayyip Erdogan’s October decree on government support for logistics centers, he noted that some of the costs of these centers will be supported by the country’s Ministry of Commerce for five years.
“We are targeting countries where our exports have deep growth potential”, Erkeskin said, stressing that supply centers would first open to countries with relatively less supply infrastructure.
The first continent to stand out is Africa, he said, adding: “Our first focus will be on countries like Ghana and Nigeria, where there are significant barriers to logistics despite the high market dynamics”.
“As long as they have a habit and taste of Turkish products, we can achieve a permanent improvement in exports here”.
Countries with developed logistics systems, such as the US, the UK, Germany and China, are also included in the initiative, Erkeskin said, adding that Turkey could gain an advantage through the incentives provided by these countries and the efforts to special groups of goods.
“If we gain cost advantage in these countries and strengthen our competitiveness, we will continue to work to ensure that our small and medium-sized businesses benefit from the incentive”, he said.
“Logistics centers will create time benefits for deadlines, especially for e-commerce, in addition to cost benefits”, Erkeskin said.
Amid supply chain disruptions caused by the new coronavirus outbreak, logistics centers will help Turkish exporters remove such barriers, he said.
“Even if countries apply restrictive measures, we will be able to use our presence and export potential in these countries”, Erkeskin said.
For countries with less developed logistics infrastructure along China’s One Belt – One Road initiative, the incentive will offer Turkish exporters a variety of opportunities, he added.
The One Belt One Road Initiative is an ambitious development program to connect Asia with Africa and Europe via land and sea networks along six corridors to improve regional integration, boost trade and stimulate economic growth.
Stressing that the investment environment and legal infrastructure of these countries are also very important, Erkeskin said: “We also want to receive invitations from these countries as investment incentives”.
Erkeskin said tangible steps would be taken to open logistics centers in the third quarter of 2021, providing storage, loading and unloading, handling, shipping and consolidation areas and division services./ibna