The density in ports is increasing, capacities must grow rapidly

Necmi CELIK

Hamdi Erçelik, Chairman of the Board of Directors of the Turkish Port Operators Association TÜRKLİM, talked to DÜNYA Newspaper about the performance of ports in 2024, the observed problems and the investments that need to be made in ports.

How do you evaluate the performance of ports in Turkey in the first half?

I find the performance of our ports in 2024 positive, and the numbers show this. In the first half of 2024, the amount of cargo handled at ports increased by 3.2% compared to the same period of the previous year, reaching 269 million 182 thousand tons, while the amount of containers handled increased by 11.2% compared to the same period of the previous year, reaching 6 million 781 thousand TEU. In June, the amount of cargo sent from our ports to foreign ports decreased by 2.9% compared to the same month of the previous year, reaching 11 million 266 thousand 49 tons.

The increase in total cargo in our ports since February had stopped in May, and was followed by a 3.5% decrease in June. However, there was still a 3.2% increase in the six-month total data. When we look at the main reason for the slowdown in the increase, it is seen that it is due to the decrease in the amount of cargo coming to our ports from abroad in May and June. When we look at it in terms of cargo types, it is observed that the decrease in liquid cargo continues. While Aliağa led in this field with a transaction volume of 44.2 million tons in total cargo in the first half, there has been an uninterrupted increase trend in the region since the beginning of the year. In Kocaeli, which ranked second, a total of 42.7 million tons was reached. In terms of containers, an uninterrupted increase continues in Kocaeli, Tekirdağ and Aliağa port directorates. Especially in Aliağa, a significant increase trend of 35% was recorded in the first half.

How is the picture on the container front?

In containers, the slowdown in the increase that started in May throughout Turkey continued in June, and the monthly development increased by 3.2% to 1 million 137 thousand TEU. When the 6 months of the year are evaluated, we see that there was a very high increase of 11.2% compared to the same period of the year, reaching 6 million 781 thousand TEU. When we look at global developments in containers in particular; in addition to the ongoing Russia-Ukraine conflict, it was expected that the impact of geopolitical factors would be even more negative in 2024 due to the Red Sea crisis. However, it is understood that the dynamics of the container market will change with the rearrangement of trade routes as a result of the efforts of Europe and the USA to reduce import dependency on China.

How do you evaluate the general situation of the world’s ports along the line from Asia to Europe?

The Red Sea Crisis, which broke out in November 2023, directly and indirectly affected the Turkish maritime transport and port sector in different ways. While restrictions on access to the Suez Canal caused delays and increased costs in supply chains, this crisis also created important opportunities for Turkish ports. The fact that ships preferred the Cape of Good Hope instead of the Suez Canal due to security concerns caused a significant increase in the volume of transit cargo in Turkish ports. In the first 5 months of 2024, transit container handling in Turkish ports increased by an average of 54.26% compared to 2023. This situation further strengthened Turkey’s strategic position and increased the importance of our ports in the global logistics chain.

What is your assessment of the increase in transit cargo?

Energy transportation has been affected by this crisis. However, despite the contraction in the trade volume of Turkish ports before the crisis, it has shown a recovery trend thanks to the increase in transit cargoes. The increase in insurance costs along with security concerns caused ships to be directed to alternative routes, which resulted in additional costs and increased operational loads at Turkish ports. However, these costs were offset by the increasing demand and the increase in transit cargoes. In addition, the global container shortage caused serious bottlenecks at ports. The long waiting times of ships and the difficulty of finding empty containers caused disruptions in supply chains and negatively affected production processes. Turkish maritime transportation was naturally affected by this global problem.

How are major ports in Turkey affected by the current conjuncture?

Despite the recovery efforts after the pandemic, vulnerabilities in the global supply chain continue. Delays occur in major ports, especially in handling, loading and unloading operations. In 2024, waiting times for ships in Turkish ports increased by up to 20% compared to pre-pandemic times. While increasing workload and container traffic in major ports occasionally created operational congestion in these ports, a 54.26% increase in transit containers in particular resulted in a picture of capacity utilization limits being reached in some ports. Increasing demand and fluctuations in global trade also affected handling processes in major ports.

What is your long-term perspective as TURKLIM?

During the global crisis, Turkish ports have become important centers in global trade and have provided a significant increase in transit cargo flow. In order to transform these opportunities into a sustainable advantage, it is critical for Turkey to strengthen its port infrastructure, invest in digitalization and automation projects, and green transformation.

Source: www.dunya.com