OVERVIEW OF THE SECTOR WITH BORUSAN LOJİSTİK GENERAL MANAGER ATİLLA YILDIZTEKİN
In recent years, new sectors with increasing importance have been emerging, and one of these sectors that has gained momentum with the rise of new growth in the business world is logistics. Borusan Lojistik is one of the pioneering institutions that has worked tirelessly in this direction in our country. Given the restructuring of other countries around the world, the representatives of the new logistics sector in our country have fallen slightly behind. Borusan Group conducted market research which showed that the two most important business lines that will develop in the world from the 21st century onward are logistics and information technology. Accordingly, Boru Nakliyat, Bortrans and Borusan İmalat, İthalat, and Dağıtım, which previously served group companies at a rate of 70-75%, were reorganized within the framework of the restructuring. It is quite surprising to see the number of companies that go from being shipping agents one day to logistics firms the next morning, considering that it took us 14 months before we got Borusan Lojistik up and running and 27 years to build up a portfolio and reputation for service quality in the sector. There are no differences in their service quality, whereas it is noteworthy that the names of many firms have changed in the past three-four years.
Changing the level of service in logistics is achieved by making a difference in the services provided and increasing the variety of services. We think that the foundation of a logistics service is meeting the needs of the customer. Logistics is a matter of expertise. We define logistics as the management and monitoring of the movement of all types of products, services and raw information flow materials in a supply chain from point of production to point of consumption. The applicable global trend is to have the work done by the people that know their job and to the experts. We have made all necessary investments to meet all the demands in that regard. We expanded our existing Gemlik Port with an investment of $20 million and invested $25 million dollars into fully meeting the non-group needs. In addition to this, we are renewing our trucks in our land transportation fleet with automatic tracking systems. We regularly provide for our internal information flow. Unlike other companies in Turkey, we first carried out the necessary infrastructure and then changed our name afterwards. Unfortunately, we encounter practices in Turkey that are quite the opposite of this.
We are also a strategic business alliance partner with CAT Logistics, one of the world’s largest logistics companies. Our long-term goal is to become the company with which overseas logistics companies come into contact when they enter the Turkish market so that we can carry out the relevant work together.
WE WANT TO PROVIDE SERVICES AT A GLOBAL SCALE IN THE FUTURE
There are no specific practices and laws regarding the logistics sector, either in Turkey or abroad. The reason for this is that each unit of operation has its own laws such as the Customs Code, Storage Regulations and international practices related to maritime trade. I personally believe that the economy should be freed up. Today, the world is heading towards a lifestyle where there are no boundaries, the examples of which we see in Europe and America. When you open the borders, you do not have to worry about protecting them. Considering the fact that the limits of global services are eliminating themselves, our global service goal for the future is substantiated once more. In this context, there must be mergers as close association between big holdings and even competitors and company marriages are becoming very common across the world. This will happen in Turkey as well.
THE CUSTOMS CODE IS FLAWED IN THAT IT PREVENTS FREEDOM OF TRADE AND SERVICES
When it comes to the new customs law, which has been brought in to solve some problems related to customs practices, I see its application as flawed in that it prevents the freedom of trade and services, despite the fact that it has been introduced with good intentions. We have already discussed this issue with UTİKAD channels and initiatives within the company. It is risky to assign the trade of a job to a specific occupation group. This situation is disadvantageous in terms of preventing the accumulation of capital in Turkey and the growth of trade capacity. It is misleading to say that customs formalities are the sole responsibility of customs or customs brokers. In this business, you can found a company and you can provide that service within the framework of that company. You can be a partner or they can be a partner to you. But here the customs code has made a change. The internal customs structures of all companies have been automatically excluded. This is flawed in terms of the control of logistics as well. While you monitor the entire process, at one point the work leaves your hands and is then returned to you. I think the wrong article is the statement that “These companies shall be founded by customs brokers.” I am in favor of a free market. Everything we control, especially everything we bring to state control, at some point makes it difficult for the private sector. Controls should be done, but in a way that does not obstruct the course of the work.
ECONOMIC TRANSPORTATION SHOULD BE CARRIED OUT
The primary objective should be the consolidation of transport companies that have been dismantled in Turkey. We must make up for the great time, labor and fuel loss that arises from transportation. I think it would be a great advantage to give incentives for joint truck work instead of for truck purchase. When trucks are combined, the amount of load to be transported will increase, and because of economical use, trucks will have less vacant space, which will in turn make trucking cheaper. This is the system implemented in Europe today.
Today in Turkey truck fleets are growing and being worked in a more optimized way. Meanwhile, in marine transportation there are 10 lines coming from the same point. Each line carries its load in small ships, but if these goods were combined, they could be carried with a large ship. In the global maritime business, many containers are combined for the purpose of economic transportation and are carried together on large ships. We need to make a transition to that system.