23008_Nearshoring Report

In terms of key transport gateways and corridors to and from Türkiye, given the variety and nature of goods being produced in and moved from Türkiye and the fact that Türkiye enjoys a land bridge with Europe, goods will be moved in a combination of different modes and routes. Seaports handling the most container traffic in Türkiye are located close to key production areas in the North of the country (notably the Ports of Ambarlı and Haydarpaşa, near Istanbul, the Port of Kocaeli and the Port of Tekirdağ), the West (Izmir and Aliaga) and the South (port of Mersin, the gateway for Türkiye to the Mediterranean) whilst the Port of Gemlik also near Istanbul is a hub for automotive shipping as well as containers. Key gateway ports for the movement of goods into Western, Southern and Northern Europe are likely to be within the Mediterranean, including seaports in France, Spain and Italy, as well as into Northern European ports, such as in the UK and the Netherlands.

Rail connected warehouses in Türkiye could be attractive as an alternative to road particularly for heavy, bulky goods like machinery, electricals and automotive components. The Turkish Government announced investment plans totalling USD 198 billion as part of its 30-year Transport Vision 2053 to improve transport networks across Türkiye. This investment includes plans to significantly improve and increase freight capacity on Türkiye’s railways with a view to increase the proportion of goods moved by rail from 5% in 2023 to 22% by 2053. The majority of freight transported in Türkiye, however, is still moved by road. Goods moving from Türkiye by road will naturally pass along corridors leading through CEE countries including Bulgaria, Romania, Serbia, Croatia, Hungary, Slovakia, Slovenia and Czech Republic and on to Western European countries. Increased volume of goods moving by land from Türkiye through CEE countries could well lead to strategies to locate or relocate major distribution hubs along these corridors for the consolidation and distribution of goods on to markets of consumption across Europe. This could mean opportunities in CEE countries, particularly those with good transport infrastructure (especially road) where goods can be moved on to end destinations over wide regional geography.

IKEA

Furniture retailer Ikea announced in October 2021 that it would be moving more production to Türkiye to serve European markets to minimise problems with global supply chains and increased shipping costs. Moving production of products such as armchairs, bookcases, wardrobes and kitchen cabinets, which were sourced from east Asia to Middle East or European markets, would reduce transport distances, environmental impact and cost and improve supply reliability.

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