Türkiye set to become global logistics hub amid Red Sea tensions
Amid escalating attacks on commercial vessels in the Red Sea, freight rates have surged significantly. Globelink CEO Unimar Fatih Bas highlighted accelerating Türkiye’s investments in the Belt and Road Initiative and the Development Road project could position the country as a global logistics hub in a $9.6 trillion market.
While the Russia-Ukraine war and Israel’s Gaza offensive continue to impact, the global logistics sector, already strained by the pandemic, is seeking new routes under the shadow of ongoing conflicts. Attacks in the Red Sea have forced ships from the Far East to reroute via the Cape of Good Hope, positioning Türkiye as a central player through its strategic projects.
‘The most viable alternative is the OBOR Project’s railway’
Fatih Bas, CEO of Globelink Unimar, emphasized the direct impact of Red Sea tensions on the sector. He noted that approximately 13% of global trade passes through the Suez Canal, and recent attacks have led to a substantial rise in freight rates.
“The Drewry World Container Index soared over 180%, later receding slightly but resuming an upward trend. Ships now need to navigate around the Cape of Good Hope, increasing costs and delivery times.
The OBOR Project’s railway is the most viable alternative, but current infrastructure limitations render this route ineffective. Investments in new trade routes during this period will benefit the logistics sector,” Bas explained.
Cheapest and safest route
Bas also underscored the significance of the “One Belt One Road” initiative, known as the New Silk Road. He stated that the Development Road, stretching from Iraq’s FAV Port to London, offers logistical access to every European country via land and rail. He believed that if Türkiye accelerates necessary infrastructure and investments, the efficiency of the Belt and Road project will significantly improve.
“International trade always prefers the fastest, cheapest, and safest routes. If we meet these criteria, all trade corridors will pass through Türkiye. Our country’s unique position, bridging Europe, Asia, and Africa, makes it one of the most advantageous locations for logistics. Continued investments will transform Türkiye into one of the world’s foremost logistics hubs,” Baş asserted.
$9.6 trillion market
Highlighting the $100 billion size of Türkiye’s logistics and transportation sector, Bas noted that Türkiye captures a 2.5% share of global logistics exports.
“The global logistics market reached $9.6 trillion in 2023, growing at an annual rate of 4-5%. We rank 11th globally in the logistics sector and have climbed to 38th in the Logistics Performance Index. Our sector continues to expand globally, increasing its market share,” Bas concluded.
