Freight Transport and Logistics Services Generate Foreign Currency Revenue

Freight Transport and Logistics Services Generate Foreign Exchange The logistics sector, following TRY 7.6 billion in service exports last year, recorded TRY 4.9 billion in exports in the first half of this year. Engin Kırcı, Founding Partner at Ares Logistics, said freight transport and logistics services have become one of Turkey's top foreign exchange-generating sectors. Pointing out that automobile exports reached USD 5 billion in the first half of this year, Kırcı stated, "Freight service exports have become competitive with automobile exports." According to provisional Balance of Payments data from the Central Bank of the Turkish Republic, freight service exports reached USD 7.609 billion last year while imports stood at USD 5.922 billion. In January-June of this year, freight exports reached USD 4.931 billion and imports USD 3.433 billion. Engin Kırcı, Founding Partner at Ares Logistics, one of the exporting companies in the sector, assessed freight transport and logistics service export statistics. Kırcı said that the freight transport and logistics sector made significant contributions to the country's economy, exports and employment in 2020 and the first six months of this year.

Logistics Sector Competing with Automobiles in Exports

Recalling that according to TÜİK data automobile exports fell to USD 9.636 billion last year and USD 4.966 billion in the first half of this year, Kırcı expressed his views as follows: "Freight service exports have become competitive with automobile exports." Kırcı noted that as Ares Logistics, they have accelerated their investments to generate more foreign exchange for Turkey and expanded their overseas operations.

"Logistics Professionals Reduced Turkey's Current Account Deficit"

Drawing attention to the fact that the sector, which supports Turkey's exports so significantly and reduces its current account deficit, faces some problems that increase costs, Kırcı noted that should these issues be resolved, freight transport and logistics exports would increase further while imports would decline, and continued: "According to Central Bank provisional data, while freight exports rose 42 percent in the first half of this year, the increase in freight imports remained at 23.5 percent. The logistics sector can generate significantly more foreign exchange for Turkey. A reduction in costs in international freight transport will also increase our country's total exports."