Overview
The Turkish transportation and warehousing sector, which accounts for 11.9% of the country's gross domestic product (GDP), sustained its growth in 2014 although the expansion remained below the real growth of the whole economy. The sector grew at a pace of 2.8% while the GDP registered an increase of 2.9% for the year. Transportation and warehousing businesses employed 1.14mn people in May 2015, which represented about 4.2% of the country‘s total employment.
Road
About 90% of all passenger and freight transportation in Turkey is done by road, which is also the second most preferred mode for transporting goods abroad with a 35.1% share in total exports in terms of value. The robust growth of trade and tourism in recent years, as well as a strong domestic automotive industry also supports the dominant position of road transportation. The main players in the segment include intercity bus companies Metro Turizm and Kamil Koc, urban transport operator Istanbul Ulasim and freight forwarder Reysas Tasimacilik.
Water
Turkey is surrounded by three seas, which naturally makes maritime transportation the preferred foreign trade option. The country’s sea foreign trade volume grew by 2.2% hitting a fresh all-time high of USD 227.7bn in 2014, driven by rising exports. The slowing economy in the second half of 2014 led to a poorer performance of imports by sea, which was seen in almost all industry indicators including ship arrivals and total cargo handled. Among the biggest local companies in the subsector are recently-privatised ferry operator Istanbul Deniz Otobusleri (IDO), shipping line operator Arkas Konteyner and container terminal operator Mardas Marmara Deniz.
Air
The Turkish aviation industry continued growing at a fast pace in 2014 led by the dominant player, the Turkish flag carrier Turk Hava Yollari (THY). The turnover in the industry expanded by over 9% to some USD 26bn and passenger numbers rose by nearly 13%. Local analysts expect passenger traffic to increase by a further 10% in 2015. The sector's dynamic development drew the attention of both domestic and foreign investors, which has resulted in large M&A and airport privatisation deals.
Rail
Efforts put in extensive infrastructure repairs and construction of high-speed lines in recent years have started to bear fruit and Turkish State Railways (TCDD) registered a growth both in passenger and freight traffic numbers in 2014. An estimated investment of TRY 26.9bn (USD 10bn) at 2015 prices was made to put into operation the Ankara-Eskisehir, Ankara-Konya, Ankara-Istanbul and Konya-Istanbul high-speed lines. Another milestone, the first underwater rail link between two continents, connecting Asia and Europe, called Marmaray, was launched in October 2013. The country also adopted liberalisation legislation in 2013, which will allow private companies to participate in the construction and operation of railways and provision of rail transportation services.