Kıran: Turkish shipbuilding industry strongly growing

MDN İstanbul

IMEAK Chamber of Shipping Chairman Tamer Kıran talks to the MarineDeal News about the latest situation of the global economy and the expectations in the Turkish shipbuilding industry

All conditions that led to a growth in the global trade will similarly continue in 2018. In this context, experts forecast a 3,6 percent growth in quantity and 7-8 percent growth in value in the global commodity trade in 2018. As the global commodity trade is expected to be around USD 18,4 trillion, I think that the U.S. and the EU will be the fast growing markets for exports. In addition, economic improvement in close and neighboring countries, Russia in particular, will speed up the increase in exports. Exports seem to be the most promising economic activity in 2018.

Global trade challenges have been inevitable since the first half of 2018, as the U.S. has taken additional protective measures against China following the introduction of additional taxes on imports of iron, steel and aluminum, and declaring it against the counterpart countries through different instruments.
The monetary policy of the United States brings new political clusters to the ranks over contradictions instead of normalization on a global basis. It is evident from this that new business associations between developed and developing states will bring new commercial opportunities. However, it seems that it will not be easy to adapt to the U.S. monetary policy, at least for now I think we can read it this way.

Alliances such as BRICS in the world trade have begun to emerge and become stronger. A slowdown in the world economy will be inevitable with the EU, Japan, and Korea taking part in this struggle.
In addition, the constructive impact of the United Nations has weakened. I also find it important that more than 40 countries, including the EU countries, jointly developed a rhetoric in July against the customs sanctions of the United States. We will continue to live the effects of this action, which is described as a sanction contrary to international trade law.

While the Syria issue, from which our country is affected the most, is on the world agenda, together with Washington’s harsh rhetoric and sanctions against Iran, Russia and other countries, it is a bit of Pollyannaism to talk about a move from a common mind or a balance in world trade or political relations.
“The Ocean Economy in 2030” report prepared by the OECD in 2016 said world maritime economy is worth USD 1,5 trillion, and 4 percent of this, meaning USD 60 billion, belongs to the shipbuilding industry. The same report predicts that the total value of the sector will reach USD 3 trillion in 2030 and the shipbuilding industry will grow to USD 90 billion. In addition, these numbers do not include the equipment technology.

When the size and the growth potential of the market are considered, it will be seen that Turkish shipbuilding industry will be among the promising players in this huge market in the future as it has been in the past.
Our country’s proximity to Europe both geographically as well as cultural and business sense is among our important advantages. Turkish shipyards are producing quality and cost-effective production on small and medium-tonnage vessels, with a building and know-how experience more than a century. Chemical tankers, tugboats in production class with advanced technology, ferries, powerships, offshore support ships and mega yachts are among our main export items. The yacht building industry has taken the third spot in the world thanks to its building quality. In other items mentioned above, at least five our shipyards have become global brands with their innovative and high technology shipbuilding.

This success comes from the blending of many components from design to production, from job security to workmanship quality. The Turkish shipbuilding industry is one of the world’s leading players with an export figure of USD 1,31 billion in 2017 and a workforce approaching 30 thousand. Moreover, this number was around 40-45 thousand at the beginning of 2008. Therefore, our Turkish shipbuilding sector, which is an important power in Turkish maritime industry, has more than sufficient technical and qualified employees, which is a problem all over the world. This advantage is a direct multiplier effect of the sector on the economy. The vast majority of these productions are 50 to 70 percent local. I am sure we will close the year 2018 breaking the record of the previous year.

The Turkish shipbuilding industry should be seen as a chance to ensure that foreign shipowners receive quality and speedy service during the maintenance-repair process, as well as new building capability. Our sector is producing world quality products in subsidiary industry. The production and service quality of our shipyards, mainly based in Tuzla and Altınova, have been proven worldwide. Our shipyards located in the Mediterranean and the Black Sea add to the success of the Marmara Region with their niche products.

As a result of such ability and development, we can provide high quality service in a wide spectrum in the fields of military shipbuilding, which requires high technology, both in our private and military shipyards. We complete the building of many vessels, from boats to education vessels, from corvettes to landing crafts, with high participation of our own industry. We sold four MİLGEM corvettes to Pakistan in July, we will build four corvettes for the Pakistani Navy for around USD 1,25 billion. Two of these productions will be made in Istanbul, and the other two in Karachi. In addition, three of our shipyards signed contracts with Qatar during the DIMDEX Fair to build 19 military vessels, including fast boats and training ships.
Our management and engineers in defense industry companies have been a source of pride in all these projects with their superior talent. When considered together, the Tur-kish shipbuilding industry stands out as an important option for shipow-ners and countries that want to have ships built. With such acceleration in ability, it will not be a surprise if Tur-kish shipbuilding industry increases its market share when the real numbers of the “OECD 2030” come.
It is an undeniable fact that Turkey, with its facilities and abi-lity, geography and seas, is a very important country in the global maritime sector with many po-wers and abilities.

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