This is a best prospect industry sector for this country. Includes a market overview and trade data.
Turkey’s transportation and logistics sector is one of the country’s fastest growing industries, tripling in value since 2002, with an average 20% annual growth rate. This growth, combined with Turkey’s strategic location as a bridge between East and West, is creating new opportunities for U.S. exporters of transportation and intelligent technologies. Turkey is not only a major transit country, but also a key freight destination. Given Turkey’s increasing population – now over 80 million – and inward migration to larger cities from rural areas, traffic has become a crucial issue, compelling local municipalities to invest heavily in Intelligent Transportation Systems (ITS). As a result, Turkey has doubled its transportation industry investment budget from 20% to 40% over the last decade. This sector is dependent on critical foreign technologies such as ITS, thus providing opportunities for U.S. firms.
Turkey’s Customs Union with the EU and its currently stalled application for full EU membership is pushing the transportation industry to consider new investments in Turkey. Turkey’s current transportation network is below EU-27 standards. Even if EU accession does not occur in the near future, Turkey has an ambitious goal to comply with all EU rules and regulations, as a majority of its foreign trade is with Europe.
U.S. firms have a comparative advantage in high-tech products; therefore, they are encouraged to take advantage by forming supplier agreements for specialized technologies.
The influence of the transportation sector is expected to increase more in the future, as many highway, railway, and other transportation-related projects are either already underway or expected in order to accommodate the needs of an increasingly industrialized country. “Combined transportation” may have a big share in the transportation industry and, due to an increase in public-private partnerships, marine and railway freightage may play a larger role in cargo transport. Turkey has committed to new investments in this sector to keep up with future demand, which is expected to reach the following targets in 2023, the centennial of the Turkish Republic:
- Foreign trade volume to reach $1.1 trillion, with $500 billion in exports and $600 billion in imports.
- GDP to reach $2 trillion
- Transported cargo to reach 625 billion tons.