That Turkey has become the next emerging logistics location was another outcome of our recent survey of European supply chain professionals. It was in the top three nominations of more than one quarter of all respondents – ahead of Poland and Romania.
Contemplating the results, this is not too surprising. First of all, Poland and Romania are already established logistics markets, not emerging locations. Without doubt, their logistics will continue to grow and evolve. But supply chain professionals looking to identify emerging markets are seeking “new” opportunities. Those markets are required to have three key attributes according to our survey: a favourable geographic location; strong economic growth; and political stability.
This is why so many would rank Turkey as their logical choice. The country offers all the required attributes. Its location bridging Europe, the Middle East, Asia and Africa is ideal for an international logistics hub. Its economy is growing strongly based on a stable political framework. There have been significant investments in infrastructure with more planned. A large and relatively young population offers a huge labour pool which is increasingly well trained. Domestic consumer spending is on the rise and foreign direct investment has picked up over recent years. Strong growth in container traffic in the main seaports around Istanbul (Ambarli, Mersin, Izmir and Haydarpasa) is another driver for the Turkish logistics market.
There is no doubt that demand for modern logistics units, in particular around Istanbul and a number of other large cities, will significantly increase over the next few years. There is also no doubt that the modern logistics stock must grow significantly to accommodate this demand. Today, this market segment is underdeveloped – so this provides an opportunity to benefit from first mover advantage for international third party logistics providers, developers and investors.