Turkey Freight and Logistics Market Outlook to 2028

Turkey Freight and Logistics Market Overview

• The Turkey freight and logistics market was valued at USD 65 Bn in 2023. This growth is driven by strategic geographical location, increase in e-commerce activities and infrastructure investment.
• Key players include DHL Express, UPS, Turkish Cargo, Kuehne + Nagel, and DB Schenker. DHL Express operates over 6,000 vehicles in Turkey, and Turkish Cargo serves more than 120 countries, showcasing their extensive networks and advanced capabilities.
• The opening of the Istanbul Airport, which is poised to become one of the largest logistics hubs in the world. As of 2023, the airport handled over 40 million tons of cargo, significantly boosting the logistics capacity of Turkey. This development is expected to enhance Turkey's position as a critical logistics center, attracting more international freight and logistics businesses.

Turkey Freight and Logistics Current Market Analysis

• In 2023, Istanbul stands as the preeminent region in Turkey's freight and logistics market. It’s strategic location, coupled with advanced infrastructure and proximity to key trade routes, solidifies its status as a pivotal logistics hub. The city's role in facilitating international and domestic trade underscores its importance in the regional and global logistics network.
• One of the primary challenges facing the Turkey Freight and Logistics market is the high cost of fuel. In 2023, fuel prices in Turkey increased, leading to higher operational costs for logistics companies. This challenge is compounded by inflation and fluctuating exchange rates, which further impact the cost of logistics services.
• The Turkish government has been actively supporting the logistics sector with significant initiatives. In 2023, the government launched the National Logistics Master Plan, aiming to enhance logistics infrastructure and streamline customs processes. The plan includes a USD 50 Bn investment over the next five years to develop logistics centers, improve rail connectivity, and modernize ports, boosting the overall efficiency and competitiveness of the sector.

Turkey Freight and Logistics Market Segmentation

The Turkey Freight and Logistics Market can be segmented based on several factors:

By Transportation Mode: Turkey freight and logistics market segmented by transportation is divided into road, air, sea and rail transport. In 2023, road transport dominates due to an extensive road network. Air transport, vital for high-value and time-sensitive shipments, is the second-largest segment. Sea transport is crucial for international trade, particularly for bulk goods. Rail transport, although smaller, is growing with increased investments in infrastructure.

By Service Type: Turkey freight and logistics market segmented by service is divided into freight forwarding, warehousing, value added service and distribution. In 2023, freight forwarding leads due to its role in managing complex logistics and international shipments. Warehousing supports storage and inventory management, driven by e-commerce growth. Value-added services like packaging and labeling enhance customer benefits, while distribution ensures efficient last-mile delivery to end customers.

By Region: Turkey freight and logistics market segmented by region is divided into north, south, east and west. In 2023, northern region including Istanbul, dominates the market. The region's advanced infrastructure, strategic location, and high volume of trade activities contribute to its dominance.

Turkey Freight and Logistics Market Competitive Landscape

• Borusan Logistics and E-commerce Partnership: In 2023, Borusan Logistics announced a strategic partnership with a leading e-commerce company to enhance their last-mile delivery services. This partnership is expected to increase Borusan's market share by 5%, capitalizing on the growing e-commerce sector.
• Ekol Logistics Digital Platform: Ekol Logistics launched a new digital platform in 2023 to streamline logistics operations and improve transparency. The platform uses AI and blockchain technology to enhance tracking and reduce operational costs by USD 10 million annually.
• Netlog Logistics Fleet Expansion: In 2023, Netlog Logistics announced an investment of USD 200 million to expand its fleet with 500 new trucks equipped with advanced GPS and fuel-efficient technologies. This expansion is expected to enhance Netlog’s operational capacity by 20%.

Turkey Freight and Logistics Industry Analysis

Turkey Freight and Logistics Market Growth Drivers:

• Strategic Geographical Location and Trade Partnerships: Turkey's strategic position as a bridge between Europe and Asia significantly boosts its logistics market. In 2024, the value of goods transiting through Turkey reached USD 200 Bn, largely due to the Belt and Road Initiative and increased trade agreements with neighboring countries.
• Increase in E-commerce Activities: The e-commerce sector in Turkey continues to grow, with sales surpassing USD 40 Bn in 2024. The surge in online shopping has led to higher demand for efficient logistics and last-mile delivery services. Major retailers and logistics companies are expanding their operations to meet this growing demand, fueling market growth.
• Investment in Infrastructure Development: The Turkish government has allocated USD 15 Bn in 2024 for the development of logistics infrastructure, including roads, railways, and ports. This investment aims to enhance connectivity and reduce transportation costs, thereby boosting the efficiency and capacity of the logistics sector.

Turkey Freight and Logistics Market Challenges:

• Regulatory and Compliance Issues: The logistics sector in Turkey faces complex regulatory frameworks and compliance requirements. In 2024, changes in customs regulations and increased tariffs on imported goods have created additional challenges for logistics providers, affecting the efficiency of cross-border transportation.

• Limited Skilled Workforce: The shortage of skilled labor in the logistics sector poses a significant challenge. In 2024, the logistics industry in Turkey reported a deficit of 50,000 qualified workers, including drivers, warehouse managers, and logistics coordinators.

Turkey Freight and Logistics Market Government Initiatives:

• National Logistics Master Plan: In 2024, the Turkish government launched the National Logistics Master Plan with a USD 50 Bn investment over five years. The plan focuses on developing logistics centers, improving rail connectivity, and modernizing ports to enhance the overall efficiency of the logistics sector. This initiative aims to position Turkey as a global logistics hub.
• Customs Modernization Program: The Customs Modernization Program, initiated in 2024, aims to streamline customs processes and reduce clearance times. The program includes the implementation of advanced technologies like blockchain and AI, reducing customs clearance time from 48 hours to 24 hours. This initiative is expected to enhance trade efficiency and competitiveness.
• Green Logistics Initiative: The Turkish government introduced the Green Logistics Initiative in 2024, focusing on promoting sustainable logistics practices. The initiative includes incentives for companies adopting electric and hybrid vehicles, with a target to reduce carbon emissions by 10 million tons annually.

Turkey Freight and Logistics Future Market Outlook

The Turkey Freight and Logistics Market is expected to show significant growth driven by increased trade volumes and enhanced logistics services, supported by projects like the Baku-Tbilisi-Kars railway.

Future Market Trends

• • Adoption of Blockchain Technology: The adoption of blockchain technology in the logistics sector will increase transparency and security in supply chain management. By 2028, it is anticipated that logistics companies in Turkey will utilize blockchain for tracking and documentation purposes, reducing fraud and errors in the supply chain.
  • Growth of Urban Logistics Solutions: As urbanization continues, the demand for efficient urban logistics solutions will rise. By 2028, logistics companies in Turkey will invest heavily in urban warehouses, micro-fulfillment centers, and electric delivery vehicles to meet the growing demand for quick deliveries in urban areas.
  • Expansion of Intermodal Transportation: The next five years will witness a significant shift towards intermodal transportation, combining road, rail, and sea transport for efficient logistics solutions. Investments in rail infrastructure and partnerships with maritime companies will facilitate the growth of intermodal logistics. By 2028, the volume of intermodal freight transport is expected to double, reducing transit times and costs.