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BORUSAN LOGISTICS - 2

How was 2001 for our company? Our objectives and expectations for this year 

Borusan Logistics performed well in 2001, a year in which one of the biggest crises in Turkey’s history was experienced and all markets entered a serious decline. We continued our work in 2001 in line with our vision of making the difference in service quality and diversity and being at the forefront of organizations providing integrated logistics services to the Turkish market. 
In 2001, we reached 58,081 metric tons of land transport shipment in June alone and realized the biggest transportation load of the last 50 years in Ereğli. We launched our Project Logistics activities as a new service. Borusan Logistics marine transportation division also carries machine parts and waste boilers with weights ranging from 20-100 metric tons. In addition, we have demonstrated a vibrant business activity with the agreements signed during the year and the projects we have implemented. For example, we have signed a comprehensive agreement with Oyak Renault that includes the unloading to unbonded warehouse, storage and loading of automobile parts coming from France, Spain and Italy without customs, as well as the transportation of land vehicles from Borusan Logistics to Oyak Renault. Netaş accepted the project which includes our logistics engineering solutions, signing a logistics service agreement with us. 
Borusan Logistics will also carry piping materials regularly shipped from Gemlik to the Vobarno SPA private pipe plant in Italy, which was purchased by Borusan Mannessmann Boru in 2001. The pipes will be transported by sea from Gemlik factory to Italy in loads of about 1000 metric tons each month, while possible port services to be procured in Italy, warehousing, customs clearance and the land transportation up to delivery to the factory will be handled by Borusan Logistics too. 
Our objectives for 2002 are closely linked to our forecasts for the market. Although we see a series of revival in our economy, we do not expect a serious burst of economic activity, at least not in the first half of 2002. Therefore, our primary objective is to raise the productivity of our business processes with the power we have acquired from our information-focused strategic business partnership with Cat Logistics and develop the most rational business strategies under the current conditions. 
Corporations are becoming more and more conscious of the crucial importance of integrated logistics services. We believe that the integrated logistics market will grow by increasing outsourcing in our country in line with the global trend of lowering costs and increasing productivity. 
At Borusan Logistics we aim to maintain our investments and projects without ignoring this insight, while also taking into account the crisis conditions. Among these, our investments in human resources and education have a special place. We are also continuing our internal e-logistics project and we intend to advance it to the B2C stage. Meanwhile, work carries on for our new warehouse investment in Gebze and the establishment of a new warehouse on the European side of Istanbul. 

Our Company’s Quality Certificates 

The first half of 1999 and the first half of 2000 for Borusan Logistics were periods in which appropriate infrastructural investments and new organization and training activities were carried out to provide logistic services. Quality control has an important place in procuring the supply chain in the South Marmara region and then across the entirety of Turkey, ranging from the procurement of raw materials to the consumption of the product. 
A member of the Council of Logistics Management and the Baltic and International Maritime Council, Borusan Logistics’s “Total Quality” understanding has been certified by the internationally recognized ISO 9002 quality system certificate. 

About our Sector 

At the foundation of logistics lies the focus of each enterprise on its core business and the philosophy of outsourcing non-economic, small-scale and low-cost services. For the development of the logistics industry the understanding of doing business together needs to develop, meaning that a culture of collaborative work needs to be fully adopted on both sides. On the other hand, there are gaps in the legislation in Turkey. Legal problems must be solved and the necessary infrastructure and logistics must be defined in the legislation for the development of the logistics sector. In addition, companies should become self-aware of the added value to be created by logistics. The impact of the 5% reduction in logistics costs on profitability is equal to or greater than the profitability achieved after a 20% increase in sales. 

Our sector’s organizations and knowledge sharing 

At Borusan Logistics, we maintain a close dialogue with the sector organizations of which we are members. In addition to our work with UTIKAD, UND and MARLİM, we share the technical know-how we have accumulated within our infrastructure with all the institutions and individuals who are engaged in dialogue with the newly-developing logistics sector in Turkey and with whom we share information. We convey our sources of information primarily through our promotion work, university events, fairs, panels and symposiums, along with our sponsorships and heavily in our sector’s press.