Kostas SANDALCIDIS UTIKAD Board Member Regional Managing Director Turkey & C.I.S Countries

1. The Role of Forwarders in Turkey – CentralAsia • “Challenges & Opportunities”forSwissForwarders • Kostas SANDALCIDIS • UTIKAD Board MemberRegionalManagingDirectorTurkey & C.I.SCountries VicePresident

2. UTIKADPROFILE & INT’LMEMBERSHIPS • National and International Transport by • Road • Air • Sea • Railway • CombinedTransportation • Logistics Services • NGO with 400 members UTIKADMembers 25.000 direct employment in approx. 400 companies.Amongthem, 95 % is active in airfreightforwarding. 73 % is activein roadfreightforwarding. 60 % is active in seafreightforwarding. 20 % is activein railfreightforwarding.

3. INTERNATIONAL ORGANIZATIONS • 1999: Balkan Congress, İstanbul • 2002: FIATA WorldCongress, İstanbul • 2011: 10 thSoutheasthEuropeanFreightForwarders & LogisticsOperatorsCongress, İstanbul

4. TURKEY’S ECONOMY Institutionalized economy fueled by USD 110 billion of FDI in the past nine years and 13th most attractive FDI destination in the world (2012 A.T. Kearney FDI Confidence Index)

5. FURTHERWITHTURKEY’S ECONOMY Average Annual Real GDP Growth (%) 2002-2011 GDP reached USD 772 billion in 2011, up from USD 231 billion in 2002. Strong financial structure resilient to the global financial crisis. Rapid recovery from the global financial crisis. Whilstmany economies have been unable to recover from the recent global financial recession, the Turkish economy expanded by 9.2 % in 2010, 8.5 %in 2011, 3,5% in 2012. thus standing  out as the fastest growing economy in Europe, and one of the fastest growing economies in the world.

6. Annual Average Real GDP Growth (%) Forecast in OECD Countries 2011-2017 16th largest economy in the world and 6th largest economy compared with EU countries in 2011 (GDP at PPP, IMF-WEO) Robust economic growth over the last nine years with an average annual real GDP growth of 5.2 %

7. GROWTHSECTORS Turkey is amongWorld’s 10 BigEmergingMarkets • Textiles • Iron & Steel • Automotive • Tourism • Transport & Logistics • Defense • Energy • TelecommunicationServices • Environment • IT

8. TransportationandLogistics  in Turkey Turkeyliesbetween Europe andAsiaserving as a bridgegeographically, culturallyandeconomically. At present 95 percent of passengersand 90 percent of goodsareconveyedbyhighway transport. Thelength of Turkey’scoastalborders is 8,333 km. “Turkey’sLogisticsPerformance is increasing” 2012 LPI Rank : 27 2012 LPI Score : 3.51 2010 LPI Rank : 39 2010 LPI Score : 3.22

9. TURKEY’SVISION OF 2023 16 new large-scale logistic centers. 36,500 km dual carriageway, 7,500 km motorway. 70,000 km with bitumen hot-mix asphalt. In 2019, an undersea tube and the 3rd bridge on the Bosphorus Bridge on the Dardanelles 10,000 km high-speed railway, 4,000 km additional railway. 8,000 km with electricity and signaling. 500 km railway will be renovated annually. Opening up of railways to the private sector. Renovation of terminals and stations and construction of new terminals for high-speed trains. Support railway projects to connect Turkey with the Caucasus, the Middle East and North Africa. New airports, 400 million passenger capacity (165 million). 3 new airports in Istanbul. 750-plane fleet (200 regional). Connection of main ports with railways. Transfer ports in Aegean/Mediterranean/Marmara/Black Sea. Having at least one of the top 10 ports in the world by 2019. 32 million TEU handling capacity for container transport. Handling 500 million tons of solid and 350 million tons of liquid load. 10 million DWT shipbuilding capacity. 100 marinas with 50,000 yacht capacity.

10. REASONSTOINVESTINTURKEY • SUCCESSFUL ECONOMY • GDP, reaching USD 772 billion in 2011, up from USD 231 billion in 2002 (TurkStat) • Stable economic growth. • 18th largest economy in the world and 7th largest economy compared with the EU in 2011 (GDP at current prices, IMF WEO) • A dynamic and mature private sector with USD 135 billion worth of exports and an increase of 275 percent between 2002 and 2011 (TurkStat) • POPULATION • A population of 75 million (2011, TurkStat) • Largest youth population compared with the EU (Eurostat) • Half the population under the age 29.7 (TurkStat) • CUSTOMS UNION WITH THE EU SINCE 1996 • Customs Union with the EU since 1996, and Free Trade Agreements (FTA) with 22 countries (19 in force, 3 pending ratification) • Accession negotiations with the EU.

11. ROAD FREIGHTINTURKEY Currently there are 1634 licensed firms in the international goods transport and 151 licensedfirms in international passenger transport. Also there are 172.945 licensed firms in national goods transport and 359licensed firms in national passenger. transport.

12. Withover 60.000 onlyinternationaloperationsassignedtrucks, Turkey has the largest fleet in Europe. Investments in the transportation system concentrated on land transportation infrastructure and Turkey has developed one of the largest land transportation fleets in Europe. The network of highways has been developed significantly and the relative importance of highways has increased. The highway length has reached 61.912 kilometers of which 1 987 are motorways. Turkey, being aware of its geographic importance, exerts great efforts to establish transportation connections between Europe, Asia and Africa. The highway system that connects Asia and Europe plays an important role for transportation of goods between these continents. At present 95% of passenger transport and 90% of the transport of goods are realized via highway transport.

13. LIBERAL AND REFORMIST INVESTMENT CLIMATE • The second biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2010) • Highly competitive investment conditions • Strong industrial and service culture • Equal treatment for all investors • Around 30,000 companies with international capital • International arbitration • Guarantee of transfers • INFRASTRUCTURE • Well-developed and low-cost sea transport facilities • Railway transport advantage to Central and Eastern Europe. • Well-established transportation routes and direct delivery mechanism to most of the EU countries. • CENTRALLY LOCATED • A natural bridge between both East-West and North-South axes. • Easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa. • Access to multiple markets worth USD 25 trillion of GDP.

14. THEFOREIGNDIRECTINVESTMENTINTURKEY FDI Inflow to Turkey (USD billion) As of the end of 2011, around 30,000 companies with foreign capital operate in Turkey. Number of Companies with International Capital(Cumulative, in thousands)

15. SWISS INVESTORS IN TURKEY Nestle SwissAir Novartis Roche CreditSuisse Mövenpick Hotel Swissotel Oerlikon Würth

16. TURKEY & CENTRAL ASIA LOGISTICSALTERNATIVES KARS-TBILISI- BAKU PROJECT BALO PROJECT MARMARAY PROJECT TRACECA SILK WIND BLOCK TRAIN ECOLPAF

17. KARS-TBILISI-BAKU PROJECT Adirect railway line between Turkey, Georgia and Azerbaijan 76 km.of the Project is inside the borders of Turkey. Easyaccess to the Central Asia and China “1.5 million passengers and 3 million tons of cargos each year”

18. BALO PROJECT “Great AnatolianLogisticsOrganizations Project” Railway Connection from West and Central Anatolianto Europe. UTIKADis theonlynon-governmentalorganizationjoinedBALO fromthelogisticssector.

19. MARMARAY PROJECT The Project provides an upgrading of the commuter rail system in Istanbul, connecting the European side with the Asian side with an uninterrupted, modern, high-capacity commuter rail system. This Project is one of the major transportation infrastructure projects in the world at present. The entire upgraded and new railway system will be approximately 76 km.long. • Projected to be in use in 2014

20. TRACECA “Transport CorridorEurope-Caucasus-Asia” TRACECA is a complex multi-modal transport system which aims to develop economic and trade relations and transportation links between countries and regions that is a significant contribution to the revival of one of the most famous historical routes of the Silk road. TRACECAroute comprises the transport system of the 13 member-states; Azerbaijan, Armenia, Georgia, Iran, Kazakhstan, Kyrgyzstan, Moldova, Romania, Tajikistan, Turkey, Ukraine and Uzbekistan.

21. SILK WIND BLOCK TRAIN The Silk WindBlock Train aims the favorable conditions for a container block train route with advanced electronic exchange of information. the simplification of customs and border-crossing procedures. thereduction of transit time and travel time.

22. SILK WIND BLOCK TRAIN Member Countries China Kazakhstan Azerbaijan Georgia Turkey

23. ECOLPAF “ECO LogisticsProvidersAssociationsFederation” UTIKAD is the Founder Member of ECOLPAF • MemberCountries of ECOLPAF • Turkey • Afghanistan • Azerbaijan • Iran • Kazakhstan • Kyrgyzstan • Pakistan • Uzbekistan • Tajikistan • Turkmenistan

24. IMPORTANCE OF ECOLPAF FOR THE LOGISTICS SECTOR • Facilitate the customs and border crossing procedures. • Acceleratethe transit transport. • Improve the logistics corridorbetween Asia and Europe.

25. A BRIDGE BETWEEN ASIA AND EUROPE approx. 75 Billion $ transport volumebetween Europe andAsia • İstanbul-Kars-Tblisi-Baku, • Kurtalan-Nusaybin-Iraq, • Kars-Nahçevan-Iran, • Kavkaz-Samsun-Basra, • İstanbul-Aleppo-Mekke, • İstanbul-Aleppo-North Africa, • transport corridorsarebeingdeveloped. Far East Asia Urumqi Ala Shankau Korla Mid and North Asia Kuche Samsun-Kavkaz Europe Kashgar Kars-Tblisi-Baku Kars-Nahçevan-Iran Marmaray Van Lake Cross. Kurtalan- Nusaybin-Iraq Tekirdağ-Muratlı South East Asia North Africa Middle East Bythecompletion of theprojects in ourCountrytheimportance of the “Silk Road” willincrease furtherandEurope,Middle East, CentralAsiaandChinaconnectionwillhavebeenachieved.

26. Turkeyhas merchant fleet having capacity more than 11million DWTand is in the 15 thrank in the world fleet. Total capacity consist of 5 % public and95 % private sectors. Turkish flagged ships make nearly one third (33.6 % exp.-32.5 % imp.) of total Turkishmaritime transportation in both import and export while two third is made by foreign flagged vessels. Turkey is also working together withinternational and regional organizations, namely the IMF, the OECD, the WTO and the EU, in order tofollow the international maritime rules and procedures.

27. KUMPORT IZMIRPORT GEMPORT MERSIN PORT

28. Duetosanctions in Bandar Abbas port of Iran, Militzer & MünchTurkeyrunsitsexporttrafficthroughMersin Port andprovidescustomerswithquality serviceallaroundtheworld.

31. THY DOMESTICANDINTERNATIONALNETWORK

32. TurkishAirlines grows networkto 300 destinations by 2015 TurkishAirlines has added more destinations to its network from Istanbul Ataturk. The new destinations include Buenos Aires (Argentina), Sebha (Libya), Niamey (Niger), Ouagadougou (Burkina Faso), Yaounde and Douala (Cameroon) as well Isfahan (Iran). The carrier now flies to 214 destinations in 94 countries. On the long-haul route sector, Turkish will add several new destinations next year, including Havana and Mexico City. The carrier is considering more long-haul routes, which could include destinations like Bogota or Panama City.

34. TRANSPORT OPERATORSINTURKEY Types of Certificate of Authorisation International roadhaulier (C2) Commissionerforinternationalgoods transport (H2) International logisticsservices (L2) Organiser of internationalgoods transport / FreightForwarders License (R2) Thecertificate of authorisation can be granted in returnforthefee, which has alreadybeenfixedbytheRegulation as follows: CertificateFees C2approx. € 30.000 H2approx. € 5000 L2approx. € 150.000 R2approx. € 150.000

35. M&M Turkey at a glance Experienced team of over 40 employees. Head Office in Istanbul. 3 branch offices in Izmir, Bursa and Mersin. Ankara and North Iraq branch offices are very soon to be opened. Istanbul Bursa Militzer& Münch Uluslararası Tasımacılıkve LojistikHizmetleri MerkezMah.FatihCad. No: 112-114 34303 Halkali / Istanbul Izmir Mersin

36. Ourservices in Turkey FTL DirectShipment FCL OilandEnergy LTL Consolidation LCL Infrastructure Consolidation Charter Buyers Consol Machinery Sea-Air Solutions Power Plants

37. The worldofMilitzer & Münch Militzer & Münchtoday offers its services worldwide with an own setup in Western and Eastern Europe, in the Commonwealth of Independent States (CIS), Northern Africa, and the Middle and Far East. Our network consists of more than 100 branch offices in over 30 countries, where a staff of more than 2600 highly committed people work for our customers.

38. ROAD • international transportation network for groupage shipments • regular, frequent departures for goods with fixed transit times • less-than-truck-load (LTL) and full-truck-load (FTL) transports in standard, reefer, or special high capacity equipment • customs clearance and documentation • tracking and tracing via a central Internet portal • national distribution services

39. AIR & SEA • direct shipments • worldwide consolidation services in import and export • combined sea - air solutions • door to door shipments • express and courier services • split charter and full charter solutions • garments on hangers (GOH) • dangerous goods shipments (DGR

40. Wekindlyinviteyouto • FIATA WORLD CONGRESS 2014 – ISTANBUL • International Federation of Freight Forwarders Associations

41. THANK YOU • Kostas SANDALCIDIS • UTIKAD Board MemberRegionalManagingDirectorTurkey & C.I.SCountries VicePresident