Turkey's position as a regional maritime hub in OBOR. Dr. Soner ESMER Assoc.Prof., Dokuz Eylul University, Maritime Faculty

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1 Turkey's position as a regional maritime hub in OBOR Dr. Soner ESMER Assoc.Prof., Dokuz Eylul University, Maritime Faculty

2 Introduction.. Does OBOR covers only Far East-Europe routes or Around the World? OBOR is a US$ trillion plan of greater economic integration and development, through better connectivity, with an estimated economic multiplier of 2.5. (Prof. Haralambides) President Xi Jinping has channelled nearly $1 trillion of government money into the project, the program is more than seven times the size of the Marshall Plan (adjusted for inflation). (Dr. Huw McKay) ) Vs.

3 The number of countries including OBOR is more than 60 and Turkey has already in.

4 Not a one-man show China is the initiator but this is not a one-man show Zhang Dejiang Chairman of the Standing Committee of the National People s Congress and the Vice Chairman of the National Security Commission of China.

5 Basic requirements for OBOR Jin Liqun President of the Asian Infrastructure Investment Bank "We will support the One Belt, One Road project. But before we spend shareholders' money, which is really the taxpayers' money, we have three requirements. The new trade route should : be promote growth, be socially acceptable and, be environmentally friendly.

6 The Chinese One-Belt-One Road strategy is a flexible initiative. Actions are required!

7 According to the Parag Khanna new book Connectography during 2015 the Silk Road moved around 2500 cntrs while it has been forecasted 7.5 mln of cntrs within (Giorgio Poggio) BELT SIDE

8 Public and private sector investments are needed! Without investment, this project is little more than a naked framework of new highways and rail lines. (Wade Shepard) Sultan Ahmed Bin Sulayem: The resources required to develop OBOR are vast, with estimates between $2/$3 trillion per year. While government-backed financial institutions have been created, there is a need to address the gap between public and private funding

9 What is Turkey's position as a regional maritime hub in OBOR?

10 Central and East Europe Black Sea Ports TURKEY East-West Maritime Routes North-South Maritime Routes Port Said

11 Turkey's coastal regions

12 Ports and terminals in Turkey 430 m/11 b Tons (%4) 8.8 m/700 m TEU (%1,2)

13 Around 50 ports are handled more than 500k tons or 100k TEU

14 Existing capacity: 20 m TEU, Planned Capacity: 30 m TEU

15 Growth rate of total container traffic at ports

16 Container demand forecast Pesimistic Average Optimistic Years Pessimistic Average Optimistic scenario scenario scenario

17 Top 10 Container Port

18 Global Terminal Operator in Turkey Source: Turklim Port Name Ownership Max. Capacity (TEU)* MIP PSA (50%)+Akfen (50%) 2,600,000 Asyaport Global Terminal Investment (GTL) 2,500,000 (70%)+Soyuer Familiy (30%) Marport Terminal Investment Limited (TIL) 2,400,000 (%50)+Arkas (%50) Kumport China Merchants (26%)+Cosco Pacific 2,100,000 (26%)+China Investment Corporation (13%)+Oman State GR Fund (35%) APM Terminals İzmir APM: Rent agreement with Petkim 1,500,000 Limak Iskenderun Limak (80%)+Inframed (20%) 1,300,000 DP World Yarımca DP World (100%) 1,300,000 TCEEGE Spanish investor; priority approach agreement 1,000,000 with Ege Gübre Assan Port Kibar Holding (51%) + TIL (49%) 400,000 Total Capacity (TEU) 15,100,000 *Including current and planned capacity

19 Headline: China consortium moves into Turkish port market with control of terminal Kumport Li Jianhong, Chairman of the board of directors of CMHI, said: With the promising economic prospects of Turkey and the hinterland of Kumport, its position as an important node situated along One Belt, One Road initiative and strong growth potential for demand of container ports and logistics services is expected.

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21 Transshipment container from/to Black Sea Countries. Transhipment container handled at Turkish ports between 2006 and 2016 increased almost 5 fold from 390 thousand TEU to 2 million TEU with an average increase rate of 25% annually has been recorded since 2006.

22 Conclusion.. Why investors should invest in Turkish Port? Turkey is a bridge country Turkey has a local cargo potential Turkish ports are attractive for transit cargo from Black Sea. GTOs investments are important to involving global maritime networks. There is no capacity restrictions at ports in Turkey

23 Conclusion.. Coopetition is coming in: the Baku-Tbilisi-Kars (BTK) Georgia and Azerbaijan will soon have a direct rail connection to Turkey, which extends through Azerbaijan from China to Europe.

24 Resources Prof. HE Haralambides, One-Belt-One-Road (OBOR), China-EU trade relations, and (geo)political positioning statements, MARCH 2017, SHANGHAI, P.R.CHINA Dr Huw McKay, Wade Shepard. Esmer, S., & Duru, O. (2017). Port governance in Turkey: The age of the global terminal operators. Research in Transportation Business & Management, 22, Wade Shepard,

25 Thank you for your attention