CAN THE LOGISTICS RELATIONS BETWEEN HUNGARY AND TURKEY BE STRENGTHEN ON THE BASIS OF TRADE RELATIONS? Prof. Dr. Tunçdan Baltacıoğlu Izmir University of.

CAN THE LOGISTICS CAN THE LOGISTICS RELATIONS BETWEEN RELATIONS BETWEEN

HUNGARY AND TURKEY HUNGARY AND TURKEY BE STRENGTHEN ON BE STRENGTHEN ON THE BASIS OF TRADE THE BASIS OF TRADE

RELATIONS?RELATIONS?

Prof. Dr. Tunçdan BaltacıoğluIzmir University of Economics

Turkey

Major Global Trade Routes 1400-Major Global Trade Routes 1400-18001800

Mexico Havana

PeruBrazil

West Africa

WesternEurope

Manila

PacificOcean

PacificOcean

IndianOcean

East Africa

IndiaChina

Southeast Asia

Baltic

Hormuz

Aden

Aceh

North America Central Asia

Canton

Malacca

Caribbean

AtlanticOcean

Trade Route

Dominant Capital Flow

Changes in Global Trade FlowsChanges in Global Trade Flows

Industrial Pole

Before 1970 After 1970

Developed Countries

Developing Countries

Developed Countries

Developing Countries

Flows of merchandises Flows of raw materials

a

b

c

d

e

f

g

h a

b

cd

ef

g

h

G1

G2

Independent Nations Interdependent Groupsof Nations

Economic Integration and Economic Integration and InterdependenciesInterdependencies

Impacts of Integration Processes on Networks and Impacts of Integration Processes on Networks and FlowsFlows

Net

wor

kFl

ows

Before Integration After Integration

International border

Major Economic BlocMajor Economic Blockks, 2000s, 2000

NAFTA

Andean Pact

Mecosur

Caricom

EFTA

EU

Europe's Associates

ASEAN

A B

Rail

Origin Destination

Transport Chain

Maritime Road

International Trade

Transshipment

International Trade and Transportation International Trade and Transportation ChainsChains

A B

Composition Decomposition

Trade barrier

Customs

INTERNATIONAL TRADE

LOGISTICS/SUPPLY CHAIN COMPETENCE

1 Euro reduction in cost from supply chain efficiencies is equivalent to a

12 Euros increase in sales revenues...

Turkey as a “Landbridge”Turkey as a “Landbridge” Between Europe and AsiaBetween Europe and Asia

Addition of new EU member states will bring attendant challenges of increases in the congestion on railroads and motorways in Europe while connecting to the developing markets of the Far East and to the development of Trans European Networks (TEN) in connection with the Pan-European Network

There is likelihood for the role of Turkey to develop as an alternative route in coordination with the Pan-European Network – once considered in ancient times as the Silk Way Road

The importance of Turkey – at the intersection of the Asian and European transport corridors while holding similar custom regulations of the EU as a non-member of the union – is increasing due to these developments in global trade

HUNGARYHUNGARYas a “Critical Logistics Node in as a “Critical Logistics Node in

Europe and Europe and “Gate to the Balkans”“Gate to the Balkans”

Hungary has an important logistical position due to having lots of transportation networks and 4 main Europen transportation corridors inside its boundaries

After being admitted as a full member in the Europen Union, Hungary becomes a gate to the Balkans

International firms logistics center in Hungary gives them a great advantage in terms of transportation cost for carrying the goods both to Western Europe or Asia via rail roads

Hungary as a “Critical Logistics Node” in Hungary as a “Critical Logistics Node” in EuropeEurope

The Convention regarding the Regime of Navigation on the Danube signed in Belgrade on 18 August 1948 is the international legal instrument governing navigation on the Danube. In order to execute the implementation of the “Danube River Regulation of Navigation”, a commission was constituted

In 2001 in the 59th Annual General Meeting of the Danube Commission, Turkey’s participation to this commission was admitted as an observer.

This observer status of Turkey in the commission is perceived as the first step in becoming a full member

Danube River and The Danube River and The Black SeaBlack Sea

Apart from being complementary water ways for navigation, Danube River and The Black Sea are related to each other in economical cooperation

Water/river transportation between Turkey and Hungary will be declined

COLLABORATION OPPORTUNITIES FOR COLLABORATION OPPORTUNITIES FOR TURKEY AND HUNGARYTURKEY AND HUNGARY

Turkey

Potential Logistics Center between Europe and Asia

Geographical advantage

Candidate member of EU

For becoming an important logistics center between Europe and Asia,Turkey is investing on logistical infrastructure

Hungary

Critical Logistics Node in Europe

Technological support

Member of EU

Similarly, it is aimed to raise the level of transportation infrastructure of Hungary to the required level of European Union until 2015

Questions?Questions?