Asia-Pacific countries seek new routes for product shipments

OMSAN Chairman Ergun Arıburnu said that disruptions in the Strait of Hormuz are pushing Asia-Pacific countries to seek alternative trade routes, and that Turkey is coming to the fore in this process with the Middle Corridor and the Zangezur Corridor.

Speaking as a guest on the Anadolu Agency's Yönetim Katı program, OMSAN Chairman Ergun Arıburnu said that following disruptions in the Strait of Hormuz, Asia-Pacific countries have begun seeking alternative routes for product shipments, and that Turkey is in a critical position in this process.

Arıburnu stressed that ongoing tensions and wars in the Middle East and nearby regions are pushing trade toward the search for safe harbors, and stated that thanks to its strong structure, advances in the defense industry, and the Turkish Armed Forces, Turkey is the most reliable country in the region.

Disruptions in the Strait of Hormuz accelerate the search for alternatives

Pointing out that logistics has ceased to be merely the movement of goods and has become a factor affecting countries' economic independence, Arıburnu noted that the biggest example of this was recently seen in the Strait of Hormuz. He explained that when Iran halted its logistics activities in Hormuz, it suddenly gained an advantageous position in the war.

Arıburnu said, “Today it’s Hormuz, maybe tomorrow the Suez or Panama Canal. These are also under the control of certain countries, and nations are thinking about what will happen if they are closed. Especially countries in the Asia-Pacific have started to look for alternative routes to send the goods they produce to consumer countries.”

Middle Corridor and Zangezur come to the fore

Noting that Turkey has been preparing for this search since 2007, Arıburnu said that logistics modes have been diversified. He stated, “The Middle Corridor, the Zangezur Corridor, the Hejaz Railway which has come back onto the agenda these days — all of these are alternative routes and modal shifts.”

Emphasizing that Turkey is no longer merely a transit route for transport modes, Arıburnu stated that they are moving toward becoming a logistics hub where trains and large vessels arrive, cargo is transferred to different points via feeder ships, and cargo arriving by rail is distributed to a wide geography, especially Africa.

Arıburnu stated that the Dörtyol-Hassa Railway and Highway Tunnels are the most concrete example of this transformation, and that thanks to these tunnels, cargo from China can be brought to the Port of Iskenderun and then transported to Africa via ship and rail connections.

OMSAN grows in Tanger Med

Pointing out that at least 90 percent of world trade is conducted by sea, Arıburnu said that as OYAK Logistics Group they have been continuously growing in ports and sea routes. He emphasized that OMSAN was the first logistics company to position itself and open a warehouse at the Tanger Med port in Morocco.

“When you go to Tanger Med, you see the OMSAN sign above the world giants. Because the company that saw its importance and made the first investment is OMSAN Logistics,” Arıburnu said, adding that they are by far the leader in automobile logistics in Morocco and Africa. He noted that as inter-country cooperation strengthens, they are increasing investments there, and their goal is to reach the African market.

10-year growth forecast in logistics

Arıburnu noted that the logistics sector continues to grow, and they predict that trade volumes exceeding 1 billion dollars will easily double in the next 10 years. Touching on the opportunities and risks Turkey will face in the logistics sector, he stated that infrastructure investments are continuing seriously, the human resources are by far in a better position compared to the nearby geography, and the search for alternative logistics routes is putting Turkey forward.

Emphasizing that the biggest risk is investments not being completed on time, Arıburnu made the following assessment: “Logistics investments need to be viewed from a long-term perspective. Building a railway or a port is a years-long task, requires a large investment, and the return on investment can sometimes be left to the next generation. Unfortunately, there are very few countries in our geography that have human resources like ours, and I see the migration of our human resources to other countries as a risk.”

Arıburnu added that with stable governance and smart investments, 10 years from now Turkey will not be just a transit route but a logistics hub serving Europe, the Caucasus, Turkic Republics, Asia-Pacific, and Africa.