Official publication of İMEAK Chamber of Shipping MAGAZINE FOUNDATION: 1984 JUNE /2016

Transcription

1 Official publication of İMEAK Chamber of Shipping MAGAZINE FOUNDATION: 1984 JUNE /2016

2 JUNE 2016

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5 Year 32 JUNE 2016 Type of publication: Common Periodical publication. Published once a month. OWNER Chairman of the Board on behalf of the Turkish Chamber of Shipping METİN KALKAVAN Editorial Board Man.: BAHRİ METE ADVISORY BOARD CHAIRMAN:CAPTAIN ALEV TUNÇ, PINAR KALKAVAN SESEL, CAPTAIN ERBİL ÖZKAYA, BAHRİ TURAN, DR. BAŞAK AKDEMİR, BAHRİ METE, AYGÜN ÖZGEN, İLKER MEŞE, MUSTAFA YILMAZ, HARUN ŞİŞMANYAZICI, CAPTAIN YILMAZ DAĞCI OUR CONSULTANTS MARITIME LAW ASSOCIATION «Welfare in our shipping society is only possible with a contemporary and knowledgeable working.» M. ZİYA KALKAVAN ESRA YILDIZ Included among the photographers whose photographs were purchased by DTO at 2011 th Photography Competition. ADMINISTRATION İMEAK DTO: Meclis-i Mebusan Cd. No: 22 Salıpazarı Beyoğlu İSTANBUL-TURKİYE T: (8 hat / lines) (3 hat / lines) F: dto@denizticaretodasi.org.tr PUBLISHER TAYF AJANS: Koşuyolu Mah. Katip Salih Sk. No: 60 D:1 Validebağ / Kadıköy İSTANBUL-TURKİYE T: F: info@tayfajans.com Editor-in-Chief: HAKKI ŞEN hakkisen@tayfajans.com General Coordinator: AYŞE OLCAY ayseolcay@tayfajans.com Advertising Manager: ZEYNEP USTAHÜSEYİNOĞLU reklam@tayfajans.com Tel: /41 Advertising and Public Relations Manager: BEGÜM ÇAKIM, HAYDAR ÖZDEN reklam@virahaber.com Tel: /41 Editor: YAŞAR ÖZER editor@tayfajans.com Correspondents: ONUR ÖMER BİLGİ haber@virahaber.com MERAL ÇİNAR meral@tayfajans.com Graphic Designer: GÜLSÜN YILMAZ Contributors: SEVİM TARHAN ATASOY Translation: *URARTU Print: BİLGİ MATBAA Bedrettin Dalan Bulvarı, Aykosan San. Sit. 4 lü C blok Kat: -1 No: 86 / 87 İkitelli Başakşehir İSTANBUL Tel: (pbx) Faks: The publisher is not responsible for the opinions of their correspondents. Any part of the Magazine may be reproduced by stating the source. ISSN

6 CONTENTS METİN KALKAVAN: BLUE: THE COLOR OF PEACE AND FRİENDSHIP... OUR PRIDE: MULTI-PURPOSE AMPHIBIOUS ASSAULT SHIP-TCG ANATOLIA GÜRDESAN DELIVERED THE FIRST BLOCKS OF THE NEW TYPE SUBMARINE PROJECT 44 BİNALİ YILDIRIM TAKES OVER AS THE NEW PRIME MINISTER OF THE REPUBLIC OF TURKEY INTERVIEW: THE ERTEK-ÖZGEN COOPERATION CARRIED ITS QUALITY TO CHINA WITH TURKISH WORKERS 54 ECONOMI: HARUN ŞİŞMANYAZICI GOD LOVES SHIPOWNERS, BUT!.. 70 SHIPPING IN TURKEY 06 DEFENCE INDUSTRY 34 EDUCATION 46 SECTORAL NEWS 58 SPORTS NEWS WORD MARITIME AND ENERGY FAIR CALENDAR 80 3

7 LETTER FROM THE CHAIRMAN Blue: the color of peace and friendship... to our country on our side of the Aegean shores to visit every year. This great civilization partnership constitutes the holiest moral basis of the Turkish-Greek friendship and fraternity. Therefore, this is more than a fair to us. This means the continuity of the dialog we have had for hundreds of years with our neighbor Greece. Metin Kalkavan İMEAK DTO/Yönetim Kurulu Başkanı Traditionally held biyearly, Posidonia Maritime Fair will be organized on June 6-10, 2016 with various social activities bringing together the seafarers from all around the world. Turkish seafarers will significantly participate in this significant fair. The establishment of the Turkish pavilion in this fair under the leadership of the Union of Ship and Yacht Exporters is of particular importance to us. We celebrate everyone involved in this. We, as the administration of İMEAK Chamber of Shipping, will be supporting this organization to the end. The Posidonia Fair is quite significant to us, because it is more than a fair for us. We have had joint efforts and studies to develop and grow the civilizations for hundreds of years with Greece, the neighbor on the other side of the water. These two nations showed the best examples of solidarity, defeating the stormy seas even in the worst of times. 4 As you can remember, the Steamboat Kurtuluş sank by being beaten by huge waves while it was en route to Greece, taking support. However, its name is still present in the minds of the Greeks. This journey has been continuing for hundreds of years in the Aegean waters between the two shores. This journey will make us remember the ancient time journeys the humanity had in the endless seas of the history. One gets lost in a long conversation with the Ancient Greek mythological heroes while heading to the country of Posidonia, the ruler of the seas, striking his three-pronged spear to the rocks and shaking the world. The fact that the Posidonia Maritime Fair will serve the inter-civilization dialogue by the name of Poseidon (the god of seas, earthquakes and horses in the mythology) is honoring us. We have a Poseidon Temple on our soil, which brings hundreds of thousands of people As the Chamber of Shipping, we are contributing to the promotion of the sector through participation in international organizations, fairs, conferences in recent years. We will continue to carry out these activities even more. We traced the civilizations on different shores of the same sea. Now it is time to plan the future and to consolidate the collaborations of the two countries. Joining forces, we can promote the Aegean region to the world through joint promotion campaigns. In fact, we can market the both ends of the Aegean Sea as a tourism package, and making the Aegean shores of Turkey and the Greek islands and mainland closer through new transportation investments. We can make Turkey a supply depot for the Aegean islands. We can add new investments to the field of marina and port business, and encourage our businessmen for joint investments. We must facilitate the visa processes and procedures, and connect the Aegean region to the islands more tightly. We must be able to go to the Lesvos Island by ships departing from Izmir Clock Tower. We can establish a new line for the Balkans through Thessaloniki-İzmir- Ropax line, one of the issues of agenda of the meetings of the leaders of these two countries. Of course, the Turkish and Greek authorities and entrepreneurs must take responsibility for these steps. The Posidonia Maritime Fair, as usual, contributes not only to the production and trade in the sea, but also to the sea culture connection the humanity. Wishing to swim together towards peace and friendship in the blue waters of the Aegen Sea, let s all remember that blue is the color of peace and friendship. May the wind be always on your back, your seas calm. Godspeed...

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9 SHIPPING IN TURKEY SHIPPING IN TURKEY Turkey is a maritime country that has a coastline of 8,333 kilometers with 27 provinces on the coastline. Having 16 private environmental protection areas, our country has 187 natural parks, 3 of which are on the sea. There are 239 bays only between Edremit Gulf and Antalya Phaselis. 104 bays in this area have been taken under protection and 94 bays are under the threat of dense housing and social pressure. ORGANIZATION OF MARITIME Commercial Maritime According to the regulations of The Union of Chambers and Commodity Exchanges of Turkey (TOBB), all maritime traders are obliged to be registered at the Chambers of Shipping. In Turkey, there are 2 Chambers of Shipping: Istanbul, Marmara, Aegean, Mediterranean and Black Sea Regions Chamber of Shipping (IMEAK DTO) and Chamber of Shipping Mersin Chamber of Shipping (MDTO). IMEAK DTO is a regional chamber that represents all the regions (From Artvin to Hopa). With its headquarters in Istanbul and its 7 branches and 16 representatives, IMEAK DTO is a business organization qualified as Public Foundation serving to the maritime sector with 8200 registered members throughout Turkey. Our main Branch Offices are located in Izmir, Antalya, Iskenderun, Bodrum, Marmaris, Fethiye, Karadeniz Ereğli. Also our Chamber has 16 representative offices in the coastal cities and towns in Turkey. The members of Turkish Chamber of Shipping have been gathered in 47 Professional Committees, according to their fields of occupation and profession. Our Members are; Shipowners, Ship Operators, Shipping Agents, Shipbroking companies including Ship Sale and Purchase Brokers, Forwarders, Stevedores, Tally Firms, Classification Societies, Marine Insurance Companies, Underwriters, Marine Surveyors and Experts, Auxiliary Services such as Salvage, Rescue, Pilotage, Dredging and Yachting, Ship Chandlers and Suppliers, Ports, Marina Operators, Ship-Yacht Builders and Shipyards, Ship-Yacht Equipment and repair Services, Maritime Training Companies, Sand Extractors, Fisherman. Turkish Chamber of Shipping is a member of the following International Organizations: BIMCO, ICC- IMB, ICS, FONASBA, ECASBA. The mission In cooperation with the public and private sectors ; to ensure the Turkish Shipping Sector s developing in a free and fair competition atmosphere, to CENGIZ KAPTANOGLU Presedent of the Assembly Foundation The Turkish Chamber of Shipping was first established as Istanbul Chamber of Shipping In 1982 by a group of Turkish Shipowners and afterwards its area of activities has been extended gradually so as to cover the regions of the Sea of Marmara, the Aegean Sea coast and the Mediterranean coast and then finally the Black Sea coast of Turkey. METIN KALKAVAN Chairman of the Board 6

10 increase its international competition strength and to provide its contributing to the development of our country and with an ever increasing understanding of service to provide the right and timely services and information to its members and to eliminate the points in the international and national regulations which hinder the development of maritime shipping. Turkish Shipowners control total 29,1 million DWT fleet. Turkish Flag Fleet is 8,3 million DWT and Foreign Flagged fleet is 20,8 million DWT. Turkish Merchant Fleet is on the 14th in the world list. Turkish shipbuilding industry With its progress started in the year of 2002 Turkish Ship Building Industry is one of the fast growing sectors of the country. The number of shipyards under operation raised up to 77 and the shipyards under construction were about 49 by the end of Turkey is a brand mark for small and medium tonnage chemical tankers and is in the 11th place in global orderbook. According to Turkey is keeping the third place in superyacht building of the global order book by 74 superyachts with the total length of 3492 meters by the end of Turkish Recycling Industry Turkish Ship Recycling is mainly centered in Aliağa/İzmir region. According to current world roster, Turkish Ship Recycling Sector is placed at 4th in the world. Aliağa Ship Recycling Facilities is named as the most environment friendly facilities throughout the world. In the year ships were recycled in the facilities and total tonnage was LDT. Amateur Maritime Shipping These activities are carried out by Amateur Maritime Shipping Federation (ADF) and several associations, foundations, federations and similar organizations. Sportive Maritime Shipping Sailing Clubs Federation and Turkish Underwater Sports Federation, etc. are dealing with this subject. Activities are continuing to include the inland waters and lakes under the scope of IMEAK DTO. PORTS & MARINAS Executive Board of the Chamber of Shipping Freight Harbors 162 Cruiser/Passenger Harbors 10 Fishing ports 471 Marinas 84 SHIPS (150 GT and over) (Number of Our Turkish Flagged Fleet) Cargo Ships 390 Bulk Carrier 85 Container 78 Liquid and Gas 194 Passenger Ships 274 Service Vessels 104 Tugs 133 Sports and Leisure Boats, Yachts 208 Fishing Vessels 229 Other Sea Vehicles 191 TOTAL SEA TOURISM Yachts (Schooners, etc.) 1529 Bare-Boat (KTB approved, foreign-flag) 871 Daily Excursion Boats 1051 Floating Restaurants 47 Inland Waters Excursion Boats (approximately) 1000 Diving Enterprises 263 Surface Enterprises 697 YATCH & BOAT Private Boats (Turkish Flagged) SEAFARERS Professional Seafarers Amateur Seafarers (Having ADB Certificate) Persons Persons 7

11 SHIPPING IN TURKEY SHIPBUILDING INDUSTRY IN TURKEY At the moment, there are 145 allocated areas around Turkey: 45 in Tuzla, 42 in Yalova, 12 in Zonguldak, 9 in Izmit, 9 in Trabzon, 8 in Balıkesir, 5 in Samsun, 4 in Çanakkale, 4 in Kastamonu, 2 in Hatay and 1 each in Adana, Bursa, Ordu, Sakarya and Mersin. According to the current legislations, 99 of these areas are shipyards and 46 of them have the status of boat construction and boat yards. Due to the recent recession, a total of 93 facilities are actively in business at the moment. According to the records created by the declarations of the shipyards within the last year: It is seen that 24 of the 145 facilities are only carrying out new constructions, 30 are operating at new construction and repair and 24 only at repair. In the 54 facilities that carry out repairs, maintenance and repair of a total of 1081 ships have been carried out and the total handled ship tonnage is 20,000,000 DWT of these repaired have been done in Tuzla, 406 in Yalova and 192 in the other areas. Turkish shipyards delivered 576 ships of approximately 4.9 million DWT between 2000 and In 2013, our shipyards have delivered 21 ships and the tonnage of DWT. In 2014 it was 139,073 DTW with 16 ships. And finally in 2015, 21 ships with the tonnage of DWT had been delivered. Having difficulty in receiving new shipbuilding orders, the sector turned towards maintenance and repair activities. The maintenance and repair tonnage that was 15,755,206 DWT in 2013 has increased up to approximately 20,000,000 DWT by the end of Contributing a lot to employment, while the number of staff directly employed by our shipyards was 33,480 in 2007, it dropped to 17,000 in 2013 because of the order cancellations due to the economic crisis. 8 GRAPHIC (1): Ship Tonnage Delivered in (DWT) Source: Clarkson Research Serv. 01/2016 GRAPHIC (2): Turkish Shipyards Maintenance and Repair Values (DWT) Source: GİSBİR (*Approximate Value) The number of the workers in the sector by 2014 is 20,334. In 2015, direct employment of the shipbuilding industry including harbor launch and manufacture place workers is 29,699 persons. While the order books of the Turkish Shipyards are analyzed, it is seen that it consists of 49 ships of 167, 394 DWT as of March In the 54 facilities that carry out new builds, 249 ships of 28 ship types were built. While it is seen that 94 of them were built in Tuzla, 74 in Yalova, 27 in Zonguldak, 18 in İzmit and 16 in Balıkesir, 20 of them were built in the other areas. According to valid data; the sector which achieved an export of 810,936 Million USD at the end of 2012, and reached to 1.16 Billion USD in Ship and yacht exports value was 1,28 Billion USD with a slight increase in By the end of 2015, it is calculated as 1,02 Billion USD.

12 GRAPHIC (4): Export Values of Shipbuilding Industry Source: Union of Ship and Yacht Exporters (e-birlik.net) As of 2014, Turkish Shipyards have the capacity of. Steel Treating of 600,000 Tons/Year,. 2 Million DWT/YEAR New shipbuilding on project basis,. New Shipbuilding up to DWT at one time,. Building of meter mega yachts and excursion boats, Million DWT/YEAR maintenance and repair. Our shipyards are recognized worldwide, especially in small and medium tonnage chemical tanker building. According to the type of the ships in orders tankers are in the first place in our yards. GRAPHIC (5): Distribution of Orders According to Ship Type Source: Clarkson Research Serv. 03/2016 Turkish shipowners have orders for 43 ships of 0,6 Million CGT worldwide as of March MILITARY SHIPBUILDING INDUSTRY Building modern battle ships in our shipyards by using design and material packages supplied by the world s leading recognized foreign shipyards has first attracted attention as a battleship supply model successfully applied by Turkey. Later on, this model was taken as an example and applied by many countries and it is still being applied. In fact, during the s when the package material shipbuilding projects were mainly carried out, it was difficult to say that the industrial potential of our country had reached a level and maturity to encourage taking risks for such modern and complicated battle platforms. Together with this, private sector shipyards began to successfully carry out some auxiliary class military ship constructions which were rather more simple in the 1990s. Here, especially the success that the private sector achieved in the design and building of modern, high speed coast guard boats built from composite material and their expansion to foreign markets are seen as an issue to be stressed. BIG PROJECTS COMMISSIONED TO PRIVATE SHIPYARDS BY SSM Within the scope of improving the military shipbuilding abilities of the private sector shipyards, it is certain that the projects of building 4 Coast Guard Search and Rescue Boats and 16,400 tons New Type patrol boats, 8 fast amphibious landing ships, LST (Landing Ship Tank), MOSHIP&KURYED, LPD (Landing Pool Ship) that are contracted out to private sector shipyards by the Undersecretariat of Defense Industries (SSM) will make an important contribution. Both in military ship and commercial shipbuilding processes, design is an activity during which the materials, equipment and systems that will be used in the building of ship are selected and thus has a significant effect in the building cost and business maintenance costs of the ship. Particularly in the military shipbuilding projects which are carried out for covering a certain movement requirement and which require high technology, cost and time, the design activities that have a rate of 5-10 percent in the total cost dissipation of the project are very important processes in which the ship performance as well as its building and life costs are determined at the rate of 90%. Carrying our ship design within the country with national resources will enable selection, use and/or development of the materials, equipment and systems that are produced in the country for building and equipping the ship. The best example of this is the MİLGEM project. With the National Ship (MİLGEM) project which is carried out with the great vision and determined attitude presented by the Undersecretariat of Defense Industries (SSM) and Turkish Naval Force and which anticipates designing and building by making maximum use of the national resources of Turkey, the design and integration of a complicated water surface battle ship suitable to the current technology and having high standards has been achieved for the first time with the support of the local industry by using national resources. For the purpose of executing MİLGEM project, nearly all the potential our country has in relation to this project both in public and private sector has been put into action. In the public sector, the corporate knowledge, experience, facilities and personnel of mainly the SMM and Turkish naval forces are actively engaged in program management, allotment of resources, project management, design and shipbuilding activities. Of the important institutions of Turkey about the matter, ITU Shipbuilding Faculty, TUBITAK Marmara Research Center, Gebze High Technology Institute and Turkish Lloyd Foundation have carried out significant research and development, test and certification activities. Undoubtedly, their activities in the MİLGEM project also made important contributions to the development of the knowledge levels and experiences of these institutions. The companies in which Turkish Armed Forces Foundation (TSKGV) is a shareholder of, ASELSAN, HAVELSAN, STM and İŞBİR, the leading companies of the defense industry of our country, 9

13 SHIPPING IN TURKEY had important duties in MİLGEM project. The business partnership created by ASELSAN and HAVELSAN, as the war systems integrator in the project, had the responsibility of the gun, sensor, communications and command control systems including critical technologies and constituting the main qualification of a battleship. Defense Technologies Engineering Firm took the responsibility of supplying the shipbuilding material that will be used in the design and building of the ship and the necessary services by using the local market resources at maximum level. LOCAL INDUSTRY USAGE RATE HAS BEEN INCREASING At the current stage of the MİLGEM project, the material, equipment and systems used for building and equipping the ship have been supplied by the resources of the local industry at the rate of 70% and this rate is around 80% on item basis. As STM, activities have been carried out with 212 companies for small scale purchases, a master agreement has been signed with a total of 75 companies with private sector industries in relation to service and material supply and approximately 9200 materials have been provided. It is also important that some of our industrialists who previously had not been engaged in shipbuilding and equipment have entered the field of shipbuilding for the first time with MİLGEM project. For the purpose of designing and building the corvette class battle ship that is the target of the MİLGEM project in a way to fulfil the operation requirements of Turkish Naval Forces, tens of engineering analysis and design works have been done in the fields of mainly ship form and transfer and stability, maritime, endurance, shock and vibration and the acoustic, thermal, magnetic and radar traces, electromagnetic interaction, ship electric and ventilation/air-conditioning systems and the related design documents have been produced. All these activities have been carried out under the management of Naval Forces Design Project Office (DPO) using the engineering means, knowledge and experiences of the private sector companies in the sector in addition to the means of the Turkish Naval Forces and the above mentioned institutions. It is evaluated that the usage rate of local industry in the military ship projects that will be realized in the following period may increase even further. It is seen that the Turkish industry cannot go back from this point it has reached, and from now on, it will continue its development with the vision of nationalizing and exporting bigger and more complicated systems like Main Propulsion Systems. In the meantime, Turkish shipyards also achieve a great success in the military ship manufactures and have started their activities for export. Our military shipbuilding and side industry has proved that they have the capacity to achieve even bigger successes in the following period. YACHT BUILDING SECTOR IN TURKEY Yacht and boat manufacturing is a sector with a very high added value that provides employment and has a high export rate. This industry manufactures by combining the products of many industry branches such as machinery, iron and steel, woodworks, paintchemistry, electric, electronic, textile, decoration, rubber-plastic, etc. within the shipyards and receives services from many service sectors. With its coasts, yacht tourism opportunities, cultural and historical richness, Turkey provides an important international market opportunity especially for mega yachts. The fact that the new facilities and harbors that are planned to be constructed in Istanbul, Ataköy and Zeytinburnu, one of the most attracting touristic and historical spots of our country will also include mega yacht mooring opportunities will provide to increase the mega yacht tourism incomes of our country in the future and these investments will be a revenue and prestige source for our country. What are the advantages of our yacht and boat industry? - Ship and boat building industry of a long history - Mastership and qualified workmanship, trained workforce, flexible working hours - High quality manufacturing at international standards - Relevant costs and workmanship expenses - High quality and sufficient side industry, favorable supply conditions - Sufficient technologic and informatory infrastructure of our country - Proximity of our country to the international market when compared to the Far Eastern countries - Marina and Yacht tourism capacity of our country - Favorable climate and environment conditions and dual human relations Turkey has presented a steady improvement in super yacht (24 meters and more) building especially since 2007 and with the 2010 data, reached 10

14 the third place in the world with the number and length of the delivered super yachts. When the 2014 global order book data is analyzed, our country is again at the third place in the order ranking with 3,005 meters and 68 projects and by the end of 2015, Turkey is still keeping its position with 74 projects. GRAPHIC (6): World s yacht orders of 24 meters and above Source: Boat International ( ) OUR TURKISH SHIP SUB-INDUSTRY IS RAPIDLY IMPROVING Ship sub-industry in our country is going through a parallel growth with the recent improvements of our shipbuilding industry; however, due to the insufficiency of production in some ship sub-industry materials in our country, shipyards are importing some of the sub- industry products. Ship subindustry is one of the sub sectors with the highest opportunity of employment creation. The main sub- industry productions in our country are: - Steel cast material - Welding and cutting tools - Diesel Generator - Deck machineries (capstan, crane, etc.) - Boiler and compressor - Valve and pipe networks - Ventilation systems - Power installation and wire - Hatch Covers - Door, deadlight and carpentry Our main sub-industry exports are steel sheets and profiles, electronic navigation aids, communication systems, propellers, prow and stern thrusters. In parallel to the growth of the shipbuilding industry of our country, our ship sub-industry also contributed to employment and thus, provided a solution to the biggest problem of our country that is unemployment. DEVELOPMENT OF SHIP SUB-INDUSTRY The rate of local contributions that are used as material and equipment in ship and yacht building is approximately 35-40%. This rate was approximately 10-15% between 1995 and 2004 and in the following years, in parallel with the improvements in our shipyards it reached to the levels of 30-35%. With this growing trend, some of the side industry manufacturing firms improved product quality because of the international competition rules and the hardships they bring about and provided that their products are commonly used in the built ships and yachts. In the ship that is still being built in Pendik, in the Istanbul shipyard under Turkish Naval Forces and in connection to MİLGEM project, the rate of local contribution reached 70% except for workmanship. All these improvements not only create the opportunity for the direct export of the manufactured ship side industry materials by the ships and yachts manufactured in Turkish shipyards, but also they have an active role in the improvement of employment. MARINE EQUIPMENT PRODUCTION IN TURKEY WITH NUMBERS The share of marine equipment in shipbuilding industry of our country dropped to the level of 30 percent from percent for some reasons. Our 2014 ship export was announced as 1 billion 280 million 878 thousand dollars. With a rough calculation, by 70%, equipment share was more than 900 million dollars and the expense for imported goods was more than 625 million. If we enhance the share of local products by 20%, a foreign exchange amount of million dollars will be saved. The export of our sector in 2014 reached 1 billion 280 million 878 thousand dollars with a 10% increase compared to the previous year. Stability was achieved despite the fluctuations within the year. Statistical charts show that the total side industry export in 2014 has been about 39 million dollars. Ship and Yacht Export in Turkey by material groups (Thousand $) 2015 Source: Ship and Yacht Exporters Association (e-birlik. net) 11

15 SHIPPING IN TURKEY There are nearly 3000 marine equipment and sub- industrialists who directly or indirectly contribute to the building of ships in different sizes in our country. GRAPHIC (7): Distribution of Turkish Merchant Fleet by Age (1000 GT and over (DWT%)) MERCHANT FLEET (1000 GT and over) Turkish Merchant Fleet consists of 593 ships; 295 ships (6.7 million DWT) have been acquired by importation and 298 ships (1.6 million DWT) have been built in Turkey. Distribution of 593 ships by their types; % dry cargo ships, % bulk carriers, 9.78 % chemical tankers, 9.61 % containers and 5.73 service ships % oil tankers, % other types of ships. Distribution of the fleet by DWT (8.3 Million); % bulk carriers, % dry cargo ships, % oil tankers, % containers, 5.13 % chemical tankers and 6.5 % other types of ships. By DWT, 9.6 % of our fleet is registered in National Ship Registry, 90.4 % of fleet is registered in International Ship Registry. By GT, 15 % of our fleet is registered in National Ship Registry, 85 % of the fleet is registered in International Ship Registry. GRAPHIC (8): Distribution of Turkish Merchant Fleet by Age (1000 GT and over (Number%)) According to our national statistics ;in DWT basis, our Turkish flag fleet decreased by 5.7 % between 2013 and 2014 and the increase continued with 1.8 % between 2014 and The highest increase by ship types are: oil tankers with 14.7 and chemical tankers with 14.6%. GENERAL AVERAGE AGE ANALYSIS OF TURKISH MERCHANT FLEET The Merchant Fleet of GT and above comprises of 593 ships. The average age of these ships is 26 as of The average age of dry cargo ships is 24 which consists of 35 % of the fleet. The average age of bulk carriers is 12 which consists of 49 % of the fleet ships of Dwt are in age group 0-9, ships of Dwt are in age group 10-19, ships of Dwt are in age group 20-29, ships of Dwt are in age group 30 and above. 12 DRY CARGO SHIPS Dry Cargo segment (207 ships) which is DWT ships of DWT are between 0-9 age range, - 30 ships of DWT are between age range, - 54 ships of DWT are between age range, - 84 ships of DWT are between 30 and over age range. 21% of dry cargo ships in our Turkish Merchant Fleet are in age group 0-9, 17 % in 10-19, 30 % in and 32% in 30 and above.

16 BULK CARGO SHIPS Bulk carrier segment (85 ships) which is DWT ships of DWT are between 0-9 age range, - 22 ships of DWT are between age range, - 7 ships of DWT are between age range, - 9 ships of DWT are between 30 and over age range. 66 % of bulk cargo ships in our Turkish Merchant Fleet are in age group 0-9, 24% in 10-19, 5% in and 5% in 30 and above. OIL TANKERS Oil tankers segment (24 ships) which is DWT - 8 ships of DWT are 0-9 age range, - 10 ships of DWT are age range, - 1 ships of DWT are age range, - 5 ships of DWT are 30 age and over. 41% of oil tankers in our Turkish Merchant Fleet are in age group 0-9, 58 % in 10-19, 1% in 30 and above CHEMICAL TANKERS Chemical tankers segment (58 ships) which is DWT - 34 ships of DWT are 0-9 age range, - 6 ships of DWT are age range, - 10 ships of DWT are age range, - 8 ships of DWT are 30 age and over. 70% of chemical tankers in our Turkish Merchant Fleet are in age group 0-9, 5% in 10-19, 15% in and 10% in 30 and above. CONTAINER SHIPS Container segment (57 ships) which is DWT - 21 ships of DWT are 0-9 age range, - 24 ships of DWT are age range, - 11 ships of DWT are age range, - 1 ships of DWT are 30 age and over. 46% of container ships in our Turkish Merchant Fleet are in age group 0-9, 43% in 10-19, 10% in and 1% in 30 and above. RO-RO SHIPS Ro-Ro ships segment (23 ships) which is DWT - 11 ships of DWT are 0-9 age range, - 6 ships of DWT are age range, - 3 ships of DWT are age range, - 3 ships of DWT are 30 age and over. 55 % of Ro-Ro ships in our Turkish Merchant Fleet are in age group 0-9, 28% in 10-19, 12% in and 5% in 30 and above. 13

17 SHIPPING IN TURKEY DISTRIBUTION OF QUANTITIES AND TONNAGES OF TURKISH MERCHANT FLEET ABOVE 1000 DWT Turkish Merchant Fleet consists of 613 ships, 13.5 % of total fleet (73 ships) registered in National Ship Registry and 88.1 % of total fleet (540 ships) registered in International Ship Registry. The total DWT and GT values of ships which are 1000 DWT and over are DWT and GT. The majority of these tonnage on DWT basis is composed of 47.7 % bulk carriers,15 % dry cargo ships and 14 % oil tankers. THE POSITION OF THE TURKISH MERCHANT FLEET WITHIN THE WORLD FLEET The World fleet (300 GT and over) is ships of DWT based on 153 countries as of The Turkish Merchant Fleet sustained its rank (23rd) in world s ranking on January 1, Panama, having a share of 18.9 % is in the first place, Liberia, having a share of 11.7 % is in the second place, Marshall Island, having a share of 11.3 % is in the third place. NATIONAL AND FOREIGN FLAGGED SHIPS OF TURKISH SHIPOWNERS In 2016 our tonnage under foreign flags is 20.8 million DWT, as of 1 January 2016, concerning the ships of 1000 GT and above, the total tonnage of the Turkish ship-owners, both under Turkish flag and foreign flags is 29.1 million DWT. As of the beginning of 2016, regarding the Turkish Ship owners ships of 1000 GT and above, 28 % percent of these ships are registered under Turkish flag and 72 % are registered under foreign flags. The biggest fleets with open registry flags in national and foreign flag vessels Greece is on the 1st row, Japan is on the 2nd and China is on the 3rd row, whereas Turkey is on the 14th row. The Port State Control (PSC) is still being used in eight different geographical areas of the world, as well as for our ships. These controls are used in our country, too, and the studies in this 14 matter continues meticulously. Within this context, Turkey has become a member of the Mediterranean and Black Sea Memorandums (MoU) and is taking any measures to prevent unfair competition and increase quality, safety and protection of environment in shipping services. Therefore, we continue to control entries of nonstandard vessels to our territorial waters and apply necessary controls. For this reason, the requirements of the international legislations such as SOLAS, MARPOL, SCTW, ISPS and ISM are being applied effectively. Detention rates of Turkish ships in foreign ports under the scope of Paris MoU is decreasing each year and it was taken in White List in When we look at the detention numbers, it was 40 in 2008, 34 in 2009, 34 in 2010, 27 in 2011, 26 in 2012, 15 in 2013, 19 in 2014, 24 in 2015 and only 6 as of May Turkish Foreign Trade Transportation by Modes (%) TURKISH FOREIGN TRADE TRANSPORTATION BY MODES Turkey is in the Mediterranean Basin, and thus on the focus of the transportation from Europe to the Atlantic, Arab Peninsula, Middle East and Far East with its hinterland at the crossroads in the East-West, North- South lines. Besides, this geographical advantage presents a situation in which sea transportation will be effective in all the areas within the country with the coastline of 4500 sea miles (8333 km). Estimated share of total world trade in 2014(mt):sea 84%, land 18%,air 1%. 87,7 % of Turkey s foreign trade is being realised by maritime transportation. The progress of transportation between the years of is shown in the table below by the modes of transportation. Years Sea Rail Road Air Pipeline and Others ,4 1,1 10,4 0, ,4 1,1 10 0,6 0, ,5 1,1 10,7 0, ,8 12,6 0,8 0, ,6 0,8 12,5 0,3 0, ,8 0,8 11,8 0,4 1, ,6 10,7 0,4 1, ,4 0,5 11,4 0,4 1, ,2 0,4 11,2 0,5 1, ,7 0,5 10,7 0,4 0,7 Source: Turkstat

18 87,7 % of the volume of Turkey s foreign trade transportation has been carried by sea, 10.7 % has been carried by road, 0.5 % has been carried by rail, 0.4 % has been carried by air and 0.7 % has been carried by other transportation modes. of cargoes. The first three cargoes are liquid bulk cargo (39 %), dry bulk cargo (30%) general cargo (19%) and container (11%). In cabotage handling in 2015, Kocaeli Port (20%), Aliağa Port (11%) and Ambarlı Port (8%) took the first three place Cabotage Transportation (Loading-Unloading) by the Types of Cargoes THE NUMBER OF INCOMING SHIPS TO THE TURKISH PORTS The number of incoming ships to the Turkish ports between the years 2011( ships)-2012 ( ships) ( ships) ( ships) ( ships) is shown below: - In 2011, the number of incoming vessels increased by 1.4% when compared with 2010, - In 2012, the number of incoming vessels increased by 1 % when compared with 2011, - In 2013, the number of incoming vessels decreased by 0.3% when compared with In 2014, the number of incoming vessels decreased by 1.8 % when compared with In 2015, the number of incoming vessels decreased by 1,4 % when compared with When the number of ships arrived in ports in 2015 is examined by port authorities, it is seen that, of the ships, % (9,991 ships) arrived in İzmit port, - 6.6% (4,861 ships) arrived in Aliağa Port - 6.4% (4.703 ships) arrived in Ambarlı Port, - 5.7% (4,242 ships) arrived in Mersin Port. CABOTAGE TRANSPORTATION According to the Turkish Maritime Cabotage Law No: 815, the maritime transportation carried out by Turkish ships, being loaded at the harbors and seaports of Turkey and discharged at the harbors and seaports of Turkey, is defined as maritime cabotage. The total cabotage transportation in 2015 is tons; tons is carried by Ferries and tons is carried as bulk and partial cargoes The cabotage transportation by types DEVELOPMENTS IN INTERNATIONAL SEA TRANSPORTATION In 2015 export shipments increased to 92,1 million tons, import shipments increased to 208,3 million tons when compared with the previous year. The share of Turkish flag vessels transporting foreign trade cargoes have been realized as 12 % on the average. The transportation of foreign trade cargoes; 11 % of the import transportation totaling 208,3 million tons have been carried by Turkish flag vessels. 15 % of the export transportation totaling 92,2 million tons have been carried by Turkish flag vessels. The share of Turkish flag vessels, in total foreign trade transportation, in export basis increased to 13,7 million tons and Seaborn Trade and Transit Loading/ Unloading in Import basis decreased to 22,7 million tons in 2015, when compared with 9,8 and 32,8 million tons in The share of foreign flag vessels, in total foreign trade transportation, in export basis increased to 78,4 million tons and in Import basis increased to 185,6 million tons in 2015, when compared with 53.5 and 106,6 million tons in

19 SHIPPING IN TURKEY The Progress in Seaborne Trade by Country Groups OECD; In the year 2015, 46,6 million tons of export and 65.1 million tons of import, totally (loading-unloading) 40,2 million tons of transportation have been realized to the OECD countries. The first 3 major countries as Turkey s export & transit loading foreign trade partners among OECD countries are Italy with 50,5 %, Spain 8,6 %, Greece 8,2 % Among OECD countries, the first three that Turkey imports from / that conducts transit unloading in Turkey are USA (18,7%), Italy (12.7%) and Greece (12.3%). Seaborn Trade OECD 2015 Seaborne Trade to BSEC Countries Foreign Trade In the year of 2015, the seaborne trade volume between Turkey and the OECD countries was metric tons million metric tons of this amount was import export while million metric tons was transit cargoes. The seaborne trade share of the Turkish flag vessels was 15.6 % and foreign flag vessels was 84.4%. EU; In the year 2015, 43 million tons of export and 50.9 million tons of import, totally 93.9 million tons of seaborne transportation have been realized to the EU countries. The first 3 major countries as Turkey s export & transit loading foreign trade partners among EU countries are Italy with 52.9 %, Spain with 9 %, Greece with 8.5 % shares. The first 3 major countries as Turkey s import & transit unloading foreign trade partners among EU countries are Italy with 16.1 %, Greece 15.7 % and Belgium 11.1 % shares. BSEC; In the year 2015, 13.6 million tons of export and 69.5 million tons of import, totally 83.1 million tons seaborne transportation have been realized to the BSEC countries. The first 3 major countries as Turkey s export & transit loading foreign trade partners among BSEC countries are Greece with 42 %, Russia with 22 %, Romania with 11 % shares. Russia with 52 %, Ukraine with 23 % and Greece with 12 % shares. CONTAINER SHIPPING The country of domicile examination (including container ships of GRT and over) at the beginning of 2015, TEU of the container capacity was not registered in the country of domicile of the owner, but flagged out. As regards the owner countries, German ship owners controlled by far the largest part of the world container fleet, namely 5.3 mill. TEU (1.626 container vessels) followed by Greece 1.9 mill TEU (396 container vessels) and Denmark 1.6 mill TEU (267 container vessels). World Full Container Fleet by Country of Domicile (1000 grt and over) 2015 The first 3 major countries as Turkey s import & transit unloading foreign trade partners among BSEC countries are 16

20 Container Handling (TEU) When the container transportations in 2015 is examined as cabotage, exports, imports and transit cargoes; on the basis of TEU, exports became 3.4 million TEU, imports 3.5 million TEU, cabotage loading-unloading TEU and transit TEU. Existing Theoretical Capacity of Turkish Ports (Acc.to 2015 Backfield of Ports, Road and Railway Connections Master Plan) Type of Cargo Theoretical Capacity Container TEU General Cargo + Dry Bulk Cargo Tons Liquid Bulk Cargo Tons Vehicle Tons STATE INVESTMENTS Presently 4 large scale projects are planned as state investments. Northern Aegean Çandarlı Port is under construction whereas others are at the stage of research and projection. Located at İzmir/Bergama, 1500 meters long breakwater s construction was completed, realizing remaining substructures and superstructures gradually first stage is foreseen to be completed by 2018 at Northern Aegean Çandarlı port. Planned to be built in three phases which aims to provide in the beginning 4 million TEU in its first phase followed by further expansion to take total capacity to 12 million TEU. But later these capacities, at least for the first phase, would be reduced to a reasonable level according to cargo demand in the area. Located on the east of existing Mersin MIP, new Mersin container port is planned in 5 phases, which aims to provide million TEU in its first phase, followed by further expansion to take total 11.4 million TEU upon completion. Being located in the boundries of Zonguldak/west Black Sea region, Filyos Port will serve to the industrial zone which is planned to be assembled on the background. Upon completion, port will be able to handle TEU container and 16 million tons general cargo. Besides those projects; Derince Container Terminal which will be built on the fill area east of existing Derince Port, will provide TEU capacity increase. Capacity of İzmir Port is planned to reach TEU at 2015 by additional investments. DEVELOPMENT AND GROWTH PLANS OF PORTS The port sector is a very dynamic sector in Turkey as in the other parts of the world. Developments in the world s economy directly affects the commodity and service trade and especially the expectations in commodity trade affect the investment plans of ports, the most important transportation infrastructure. Increase in commodity and service trade in mid and long term would lead acceleration in port investments, but decrease in such expectations would also cause postponement of the investments. There are two options to increase the capacity of ports; increasing the efficiency of existing ports and making physical investments. Physical investments include: Developing physical conditions by building new docks and background facilities. Increasing port handling capacity through new equipment purchases. Both options ensure increase in load and ship acceptance capacity of ports. Within this scope, the intended capacity growth and improvements for the coming years are as follows: Port/Facility Load Type Existing Capacity Project End Ege Fertilizer Container TEU TEU Limak İskenderun Container 400,000 TEU 3,000,000 TEU Toros Tarım (Samsun) Bulk Solid/ General Cargo 3,300,000 Tons 8,500,000 Tons Aksa General Cargo - 4,000,000 Tons DP World Container - 1,300,000 TEU Petkim Container - 1,500,000 TEU (might be increased to 4,000,000 TEU subject to cargo demand in the area in future) 17

21 SHIPPING IN TURKEY Asyaport Asyaport is a new Greenfield container terminal located in Barbaros/Tekirdağ, built by Asya Port Liman A.S, located in Barbaros / Tekirdağ (40 54 N; E) on 30 Ha of reclamed land as a container terminal. The construction has started in 2010 and completed for operations in July Having two kilometers of wharf length and 20 meters of depth, the port also serves as Turkey s first transit container port with a handling capacity of 2,5 million TEU which makes it a world scale port. Electrical energy is used to power the ports 11 ship-to-shore gantry cranes and 33 rubber tyre gantry cranes to sustain an environmental approach. The major part of international trade is being realized through maritime transportation in Turkey. 86 % of goods (import-export) have been maritime transported in 2015 according to the Ministry of Transport, Maritime Affairs and Communications figures tons of cargo is realized at Turkish ports in ,1 % of handling is export with tons..50,1 % of handling is import with tons..12,6 % of handling is cabotage with tons..15,2 % of handling is transit with tons. Cargo Handling Figures At Turkish Ports (Acc. to Transport Mode) MODE OF TRANSPORT EXPORT TURKISH FOREIGN IMPORT TOTAL TURKISH FOREIGN CABOTAGE TRANSIT TOTAL TOTAL LOADING UNLOADING TOTAL LOADING UNLOADING TOTAL LOADING UNLOADING TOTAL Source: Ministry of Transport, Maritime Affairs and Communications 18

22 Container Handling Figures At Turkish Ports MODE OF TRANSPORT EXPORT TEU TONS PCS IMPORT TEU TONS CABOTAGE TRANSIT GRAND TOTAL PCS TEU TONS PCS TEU TONS PCS TEU TONS TOTAL Source: Republic of Turkey Ministry of Transport, Maritime Affairs and Communications İskenderun/Mediterranean Region, Ambarlı/Marmara Region and İzmit Bay. Rather than specialized ports providing service for one type of cargo Turkish ports have the characteristics of conventional ports equipped with different equipment that can provide service for various cargo types. However, this contradicts with the specialization trend in the world. Turkish ports should go into an expertising process on certain types of cargoes and/or new port projects for container handling so as to become more competitive in the Mediterranean and Black Sea markets. Recently private container terminals increased specially in the Marmara Region. Turkish ports hold strategic position within the Eastern Mediterranean and Black Sea Shipping Lines and at the intersection point of East- West and North-South directional international transport corridors. They are in an advantageous position to attract transshipment/transit cargoes. Ports in all regions of Turkey are so located that they can serve to different transportation nets. The Mediterranean and Aegean Sea ports are located with little miss distance and have ability to attract Asian-European main shipping lines cargoes passing through the Mediterranean. Specially, the Mediterranean ports are in a position to operate as transshipment/transit ports for delivering cargoes coming from main shipping lines to Middle East and Central Asian countries. Meanwhile Ports in the Marmara Region are important in terms of Turkish connection of Trans-European and Pan-European transport corridors formed by EU and extending those corridors to East. As a result of growing trade and transport volume in Black Sea which is the most important means of access for trading among the landlocked Central Asian countries with Europe, the importance of our ports in the area have increased. TURKISH MARITIME ORGANIZATION PORTS The main operation fields of TDİ include pilotage service, one of the port management operations, and tug and moor services, passenger services, supply of water and electricity for vessels, diving services and building, maintenance and repair works of any vessel and marine vehicles. TDİ conducts its management activities as port services. 19