Turkish Marine Post 1 by Oruç Reis Denizciler Kulübü

Turkish

Government toughens sea policy

Rising Yıldırım reveals new conquest plans

Owners and ship masters will be imposed new responsibilities on matters such as ballast discharge zones, satellite tracking, environmental P&I clauses and..... Page 4

Following purchase of 20 percent share in CMA CGM, Chairman Mr. Robert Yüksel Yıldırım sets new goals focusing on primarily... Pages 10-11

Marine Post International Sound of Turkish Shipping

Year: 1 G Issue: 1 G Jan-Feb. 2011

Turks leap forward with newcomers

Sefine Shipyard, located in Yalova, received the third order from Dutch shipowners who seem content with the first two 13,000 dwt general cargo sisters’ quality.

New shippers club hunts for first ship

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White listed Turkish flag continues surge

ODEK, namely Oruc Reis Maritime Society, looks to acquire first handysize ship to be jointly owned and operated on account of disposed members. Page 23

Horizon eyes livestock conversion

Following a rigorous buying move to add 7 handysizes to its fleet, Horizon devises plans to exploit a new opportunity in the livestock shipping niche by converting a Ro-Ro. Page 6

Page 15

Fresh entrants lead the surge in Turkish orderbook portfolio as it consists of over 40 newbuildings lined up in 2010. 13 of these orders are Kamsarmaxes. Turkish owners acquired further 45 bulkers in the second hand market. Page 16

Substantial steps on the decade old project:

Coaster owners pool for renewal outfit Giants to duel over ferry tender Page 19

Growing yard eyes Panamax repairs and Navy projects

mall tonnage operators in Turkey are close to achieving their long neglected goal of fleet renewal as Turkish and Dutch ministries of transportation last week agreed on initial terms to support Turkish Coastal Merchant Fleet Renewal Project. Owners have set out to incorporate a joint-stock company in line with the

project which was first introduced more than 10 years ago. Talks with Netherlands concerning the renewal of Turkish coastal fleet panned out as Dutch delegation that visited Turkish Ministry of Transport last week indicatively agreed on a high leverage and long term financial package against partial sovereign guarantee... Page 7

New shipyard zone attracts foreign interest A dredging company’s foresight might turnout as an invaluable shipyard investment. Located just outside Tuzla Shipyard Region, the project draws German and Swedish investors.

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Cost-savvy bulker attracts owners A dry cargo newbuilding lined up for a Bulgarian company at Gisan Shipyard sparks technical interest. The ship’s light structure permits less costly operation without compromising capacity and speed, shipyard claims.

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EDITORIAL... Hello, Dear readers…loving and living by the seas, Lloyd’s Fairplay magazine, in prelude to their special Turkey report issued last week, comments as follows: “Ten years ago, if you told an average Turk that within a decade their country would have one of the world’s most enviable economies (which expanded 8 percent in 2010 and is forecasted to grow another 7.5 percent in contrast to anticipated 3 percent European growth), they would probably have Ali YILDIZ laughed”. In fact if mentioned that a Turkish company would become stakeholder of a giant like CMA-CGM; that Turkish flag would be whitelisted and that the country’s owners and yards would be cited among top shipping nations, a reporter like myself would -though challenged with patriotism deep inside he might be- probably have laughed. Nevertheless, development does not only manifest itself in figures…even the advent of new industry related organizations and publications hint Turkish Marine Post is, for the time being, the latest of such publications. Just as the society it gives voice to -Oruç Reis Shipping Society or ODEK- is the latest of such organizations. This first issue covers plenty of material on ODEK as readers are also kindly encouraged to check www.odek.org for detailed information on the society. However, introducing our paper, Turkish Marine Post, should be a task of mine. Having enjoyed a long and fruitful stint with the official magazine of Turkish Chamber of Shipping between 1999 and 2010, I had the chance to witness Turkish economy and Turkish shipping prosper and catch the attention of foreign companies. Designed in a dual format in both Turkish and English, this publication was also shipped abroad, however hardly reaching correct destinations. When ODEK officials, in line with their vision to make Turkish market better known across the globe, shared their idea to release a worldwide publication with me and Editor-in-Chief Murat Erdoğan, we compounded it with our very own impression of the information source gap, discouraging those who are interested in Turkish shipping outside Turkey. Thus Turkish Marine Post was born, “for the time being” printed only in English. We are determined and confident that we will let spirit of development shape this publication, just as it shaped Turkish shipping into prominence. We wish to be together with you, our both local and international readers, for many years aided by all forms of your support which surely shall be much appreciated. Planned as a bi-monthly publication that will have 6 issues in a year, our paper will be printed monthly in at least 2,000 copies. 1,200 of these copies will be distributed across Europe, North Africa, Middle East, Balkans, Russia and some Central Asia countries. Of the international recipients, 10 percent will be NGO’s, administration, consulates or other similar offices, 70 percent will be shipowners and 20 percent will be agencies and brokerage firms, while it is needless to mention our efforts to extend the list…

Turkish

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ENVIRONMENT

Turkish Marine Post

Government toughens sea policy Owners and ship masters will be imposed new responsibilities on matters such as ballast discharge zones, satellite tracking, environmental P&I clauses and more importantly Golden Franc system to be employed for strait passings.

urkish Undersecretariat for Maritime Affairs is set to get tougher with marine safety and pollution prevention. The administration seeks legal ways to stipulate environmental P&I clauses for all vessels passing through the straits as it has already adopted regulations that hold P&I cover mandatory for all

ships calling at Turkish ports. According to bureaucrats, some shipowners are known to disable certain clauses in order to cut back on premium costs while some P&I institutions refuse to cover substandard ships fully. Both cases reportedly have severe outcomes for the Turkish administration, as in the

event of an incident “it becomes impossible to find a respondent for claims” sources say. Undersecretariat prepares for new ballast rules Another project the Undersecretariat has resolved to develop involves ballast water management. It is understood that with joint efforts of Turkish Scientific and Technological Research Institute (TUBITAK) and the Undersecretariat, a study has been conducted to assess and reduce the risks untreated ballast water poses. As “International Convention for the Control and Management of Ships Ballast Water & Sediments” is expected to enter into force this year, it is understood that Turkish authorities devise plans for compliance. The study aims to locate the most suitable ballast zones off the coasts where marine habitat is less likely to contain invasive species. Administration has already put the efforts into pilot practice at the port of BOTAŞ, where ships are required to replace ballast water at an indicated zone. Turkey is cited among the first tier countries to adopt the ballast convention, according to which all ships will have to be outfitted ballast water treatment systems before 2015. EMSA aids pollution battle Further news is that Turkey has participated in “Clean Sea Net”, a service developed by the European Maritime Safety Agency (EMSA) for ship source pollution monitoring and environmental

surveillance. It is learnt that from now on the administration will be able to identify ships which cause pollution via satellite systems. Fines ranging from 5 to 120 thousand Turkish Liras based on gross tonnage will be imposed on “culprit” vessels in addition to possible port state detention. Following a 6 month familiarization period, the system is expected to start running at full capacity this month. Minister draws tariff sword Meanwhile Turkish Government, eager to reduce ever increasing tanker traffic across the straits, plans to reassess passage fees based on a rule that was originally used as per the Montreaux Convention, which is in force -despite several amendmentssince 1936. In a statement last week, Turkish Energy and Natural Resources Minister Mr. Taner Yıldız emphasized that “Turkey could exercise its right to tariff passages using the Gold Franc method, set on Montreaux”. Yıldız also expressed the government’s unwillingness to resort to such measures since it would mean serious increases in passage fees, however warned that they “could consider if there were no more options left”. Mr. Yıldız also commented that increasing the fees could provide some comfort for Turkey despite its negative impact on transport companies and said “We should fine tune such an optimum rate that can secure the nature and historical beauties of Istanbul”. He explained that the straits see 18 large tanker passages per day, translating to some 150 million tones of crude oil per annum. Turkey charges an approximate of 150 million dollars every year as passage fees, which seems to be regarded a small price for the risk.

Turkish Marine Post

NEWS

Greeks and Chinese top S&P charts while Turks follow Turkish shipowners rank third after Greek and Chinese shipowners in the dry cargo S&P league last year. urkish shipowners rank third after Greek and Chinese shipowners in the dry cargo S&P league last year, reveals N. Cotzias’s annual report. According to the statistics, Turkish controlled entities acquired 45 bulkers throughout 2010, granting them the third place, in terms of number of units purchased. Sale & Purchase markets this year, seem to have exceeded expectations amid tonnage oversupply concerns for following years. Powerful Greek shipowners, who did not seem to be in a hurry in 2009, make it over the top in 2010 again. According to a recent report issued by the century old shipbrokers N. Cotzias Shipping Group in Piraeus, Greek acquisitions account for 24,6 percent of the total second hand drycargo purchase volume consisting of 243 vessels worth approximately 5,9 billion US dollars. Greek owners also top tanker S&P lists as they acquired 82 tankers worth

approximately 3.5 billion US dollars, nearly making up for 29 percent of all the deals worldwide. On the other hand, number of bulk carriers sold by the Greek owners is 167. Meanwhile, Chinese shipowners besides becoming the new orderbook champions- also seem quite interested in the second hand bulk carrier market, figures show. Having purchased 205 vessels worth 3,3 billion US dollars that account for

almost 18 percent of the sales movements, Chinese owners are the runners-up. They are, however, hardly any match for Greek tanker owners, as they spent merely about half a billion US dollars for 30 tankers. A performance seven-folded by Greeks, who spent 3,5 billion US dollars for 82 tankers. The report highlights success of Turkish shipowners, who had been

known to invest vigorously. They rank third in the list as 45 dry-cargo ships worth 311 million dollars have been acquired during 2010. Although the overall tonnage of the acquisitions remain modest, Turkish owners’ appetite for vessels is further confirmed with another report issued by TradeWinds, which suggests that further 13 vessels of various other types have been purchased during 2010, making over 60 vessels.

Open registeries gut Turkish flag Recent statistics suggest that whilst Turkish national fleet numbers remain steady, fleet controlled by Turkish owners under open registeries shows rapid growth. Meanwhile the overall fleet is poised to double as new orders kick in.

ccording to an extensive study conducted by the Turkish Undersecreatary for Maritime Affairs, Turkish fleet is set to grow in general. However report also reveals that Turkish owners nowadays favor foreign flags rather than the national register. Statistics in the book issued by the

Undersecretariat suggest that as at 1 January 2010 Turkish owned fleet over 100 GT totals 2.222 vessels accounting for 18,9 million dwt. Taking 1,000 GT and over into consideration, Turkish flagged fleet capacity is 6,7 million dwt while capacity outside the flag amounts to 8,6 million dwt. The report also reveals that from 2003 and onward, Turkish owners opted for so called “flags-ofconvenience” to register their new acquisitions. National tonnage has been steady for the past 7 years whilst foreign flagged Turkish fleet has increased form 2 million dwt to some 10 million dwt. Turkish controlled 2.222 vessels are scattered across 42 country flags, which

include European countries like Sweden and Italy as well as Tanzania, Togo and Dominican Republich which are less prominent. Malta tops the chart in terms of tonnage with 228 vessels representing 4,7 million dwt. Second most favored flag appears to be Marshall Islands who gained much in popularity lately. 70 vessels with an aggregate tonnage of 2,7 million dwt fly Marshall Islands flag while the age profile is 6,1. Maltese flagged fleet seems to be older as average age profile is 11,5 however Turkish national fleet with 1.136 vessels average 24 years, only to be surpassed by the age profile of Panama flagged Turkish vessels that score an average of 25.

Fleet to exceed 35 million dwt Undersecretariat for Maritime Affairs provided more elaborate information with this report compared to previous reports it issued. Besides the 18,9 million dwt active fleet the report separately analyses the Turkish newbuilding orderbook. It suggest that 180 vessels totaling to 12,8 million dwt capacity have been ordered yet not keellaid as of 1 January 2010. Building of 101 vessels with 2 million dwt capacity have actually been commenced according to the report, which means if all orders are to be successfully delivered to Turkish owners, the nation’s fleet capacity may increase over 35 million dwt in a couple of years.

YOUTHFUL INSIGHT

Horizon eyes livestock conversion Following a vigorous buying move to add 7 handysizes to its fleet, Horizon devises plans to exploit a new opportunity in the livestock shipping niche by converting a Ro-Ro.

orizon Shipping continues to grow with recent vessel acquisitons as it caught a lot of eye in Turkey with second hand purchases during the depressing 2009-2010 periods. Outpacing the traditional Turkish shipping entrepreneurship mentality, the company sets a dynamic example by pushing its own limits. Immediately after Turkey lifted ban on livestock and processed meat product imports, the company has seen the opportunity and started importing live cattle form Uruguay and Australia via ships. Horizon sees livestock shipping operations as a promising business arm and contemplates further investments.

Turkish Marine Post

rizon in brief o H Horizon is an affiliate of Çalışkan Group; originally a breeding, food production and trade company established in 1986. Çalışkan Group underwent major restructuring during 2002 to cover other business fields including furniture production, coal mining and oil products. During 2004 Çalışkan ventured into shipping with Horizon Shipping. Another significant shipping investment under Çalışkan’s management is ISTER, Iskenderun Shipyard, an important repair and maintenance spot in the East Mediterranean.

According to board member Mr. Fatih Çalışkan, company looks to acquire and convert a candidate Ro-Ro vessel so as to commission her specifically for this purpose. It is understood that the purchased vessel will be converted in Tuzla in full compliance of relevant international regulations and ship 6.500 head of cattle worldwide.

Invited investors to raise funds Mr. Çalışkan told that the company was created in 2004 to own 5 coastal traders and 2 handysize vessels. “We managed to exploit opportunities that have sprung up during crisis due to falling prices and purchased 7 second hand handymaxes” he said adding that the funds required has been raised by

Inexperience overcomes reluctance “Major factor in our success is perhaps my lack of experience in shipping that drove us towards bold investments despite the crisis” told Mr. Fatih Çalışkan, “because if otherwise had been the case, whereby we had years of experience, I believe we would hesitate a lot, moving hither and thither”. However he emphasizes that investing at the right time to the right tonnage must have been achieved as a result of careful consideration and mutual prevision. Mr. Fatih Çalışkan, cordially remarks, “Diligent studies, combined with sheer rookie luck, enabled Horizon to grow

despite crisis”. Horizon’s 29 year old board member is a 2004 Fatih University graduate with a degree on management. After graduation he has been to UK for a year to improve language. He has later on moved to Çalışkan Group’s headquarters in Gaziantep and honed his business skills at the Group owned Sumo Coal, which engages in South African coal mining operations. He took up his post within Horizon during 2008 and since then has been responsible for commercial fleet operations.

calling for interested parties to participate in Horizon’s capital. The company now runs a fleet of 15 vessels with an age profile of 17 years and mostly Turkish flagged. While the 5 older coastal traders are considered for scrapping, the proceeds will most likely be reinvested as upfront payments of 4 handysize orders, Mr. Çalışkan revealed.

NEWS

Turkish Marine Post

Substantial steps on the decade old project:

Coaster owners pool for renewal outfit mall tonnage operators in Turkey are close to achieving their long neglected goal of fleet renewal as Turkish and Dutch ministries of transportation last week agreed on initial terms to support Turkish Coastal Merchant Fleet Renewal Project. Owners have set out to incorporate a joint-stock company in line with the project which was first introduced more than 10 years ago. Talks with Netherlands concerning the renewal of Turkish coastal fleet panned out as Dutch delegation that visited Turkish Ministry of Transport last week indicatively agreed on a high leverage and long term financial package against partial sovereign guarantee. On Turkish end of the deal, it appears pressure from Turkish Transport Minister Binali Yıldırım to start the project prior to 2011 general elections resulted in a fast paced series of actions. Turkish delegation led by Transport Ministry Deputy Undersecretary Capt. Suat Hayri Aka, resolved that a Koster Yatırım A.Ş. (Coaster Investment Corp.), will be founded, pooling capital from owners as well as the Undersecretariat for Maritime Affairs. First newbuilding can be keel-laid within two months, according to sources, who also indicate that the deal comprises a hefty 50 vessel order with an option to build 50 more.

Dutch ask state backing Preconditions set for the Dutch loan includes country’s equipments to be imported for fitting onboard the vessels as well as a 30 percent

sovereign guarantee. It is understood that Netherlands will facilitate a loan with a 14 year repayment profile including a 2 year grace period that covers 80 percent of each vessel. Based on a reference design, dubbed “Turkish Star” each 5.000 dwt vessel is estimated to cost 8 million US dollars. The interest rate for the deal is mentioned as 3 percent. ISTFIX’s (Istanbul Freight Index) founder Mr. Salih Zeki Çakır, having first hand information on the details, told Turkish Marine Post that Turkish side has been negotiating to raise the leverage to 85 percent whilst maintaining the collateral structure, which only focuses on ship mortgages. According to Capt. Çakır a minimum of 100.000 dollars can be invested while total participation will be capped at 1 million dollars. “First 50 ships have been planned as 5,000 toners however the second 50 vessel series can be larger, based on market circumstances” he said. Capt. Çakır indicated that the outfit will have a “semi-official structure with the Undersecretariat’s involvement” mentioning about the possibility of inviting larger organizations like Turkish Chamber of Shipping at a later stage. Reportedly 50 percent of the first ship’s cost is already collected from a group of investors, including Capt. Çakır himself as he claims that another 25 companies are keen to pay in and start building other ships. “This can also yield vitally for Turkish yards which are in dire need of business” he said, emphasizing the project’s significance.

SHIPOWNERS

Turkish Marine Post

Turks leap f newcomers Second Sabancı reaches half a billion in orders ensa Shipping, which was created amid crisis by the Sabancı dynasty member Mr. Ömer Sabancı, is venturing boldly into shipping as its order line-up reaches 550 million US dollars. Mr. Ömer Sabancı is the second Sabancı to establish himself in shipping business after Mr. Yalçın Sabancı of YA/SA. Starting with a second hand bulker in 2008, Densa Shipping has been expanding into shipping with resale acquisitions. Recent reports from Far Eastern yards and S&P dealers suggest that the company now has 17 vessels on order set for delivery until mid 2012. Densa initially purchased a 2002 built bulker at 22,7 million US dollars, shortly to be followed by a deal involving a resale of five supramaxes worth 175 million US dollars. Four of those vessels have been reported delivered. During 2010, Densa started placing orders with South Korean yards as two 57.300 dwt bulkers with an option of further two were lined up with STX. The two options were converted to orders during March, while the quartet, altogether estimated to cost at least 120 million US dollars, is set for delivery in 2012. According to sources, STX also secured two kamsarmax orders from Densa, increasing the number of orders to six. The pair is said to cost 80 million US dollars and slated for delivery between 2012 and 2013. Another South Korean yard, Samho, also booked a sizeable order from Densa, however consisting of a different size. An order of six 32.000 dwt handysize bulkers worth 165 million US dollars was reportedly placed with Samho, due for September 2011 delivery. Recent orderbook reports suggest that Hyundai Heavy Industries and is also taking share of Densa’s newbuilding initiative, as well. HHI is said to have sealed a pair of Suezmax tanker deals during August and booked a Capesize order with an option to build one more during November, each said to cost 60 million US dollars. Hyundai is going to hand over first Densa order during the first half of 2012.

First supramax raises spirits in Tuzla urkish shipbuilding industry, better known for boutique building and chemical tankers at focus, seems to be capable of building larger vessels as well. Delivery of the “Kaptan Arif Bayraktar”, a 58.000 dwt supramax bulk carrier, gave a morale boost to the woeful industry. The vessel, built at private shipyards at Tuzla, was turned over to owners Bayraktar Shipping with a ceremony attended by notable figures of Turkish shipping and shipbuilding society. Bayraktar Group’s Chairman Mr. Erhan Bayraktar, in his speech during the ceremony, noted the size of the vessel and pointed out to capabilities of Tuzla yards. Having been hit by cancellation waves, Tuzla yards have been seeking their way out of stagnation with Naval projects and specific buildings. Industry specialists comment that although it is rather premature, edging towards handy-class larger vessels could prove feasible, provided that costs are reduced.

hether they be rooted shipping companies with decades of experience or confident businessmen who venture into shipping seeing great opportunities, Turkish shipping entrepreneurs appear to be rising to prominence amid crisis. Throughout 2010, far eastern shipyards have received over 40 orders from Turkish controlled companies which seem to favor handysize and kamsarmax bulkers as well as suezmax tankers. Second hand markets have also seen much interest from Turkish owners. Based on number of second hand bulkers acquired, recent statististics list Turkey as the third aggressive country following Greece and China. Figures indicate that Turkish owners have purchased over 60 vessels, 45 of which are bulkers consisting mainly of handysizes.

Yalçın Sabancı’s legacy Turkish businessmen have long been aware of shipping which lured many investors with its high returns during the booming years. However extremely high prices have been the major factor that quenched their enthusiasm. The global crisis and entailing tumble of prices only served as a tool to remove the entry barriers for those businessmen. Mr. Yalçın Sabancı, who encroached shipping territory during a similar crisis in 1999, created YA/SA that became one of the two largest Turkish shipping companies in 11 years. He now constitutes the role model for other players. The result is billion dollars of Turkish capital flowing into shipping through not only second hand acquisitions but also new orders. New wave of big players also impact positively upon traditional profile of the country’s shipping society. Mr. Hüsnü Özyeğin, a former banking mogul and current chairman of Fiba Holding has been the first businessman to follow Sabancı’s footsteps. He established Fors Shipping in 2007 and booked many chemical tanker orders at Tuzla Yards, meanwhile also trying to pick up port operations via buying out Kumport in a 255 million US dollar deal. Same year, he established Tankinvest in an equal partnership with Dünya Shipping and lined up 5 tanker orders worth 245 million US dollars. First trio of the 52.000

forward with s The face of Turkish shipping society is changing to reflect what seems to be a more financially driven and globally competitive league of owner profile.

dwt series were delivered last year, while it is said that delivery of the latter pair has been postponed to 2012. Another Sabancı sets foot Densa Shipping, frequently compared with YA/SA -as it is established by Mr. Ömer Sabancı who descends from the same dynasty- commenced shipping investments in September 2008 and rapidly made 20 ship investments.Further details of Densa’s foray into shipping can be found on these pages. Another conglomerate, Ciner Group, best known for its media, energy and mining investment across the country, is preparing to make its debut into shipping society by admitting first two vessels before 2012 into its fleet. The group is said to target a fleet of at least twenty vessels consisting evenly of tankers and bulkers. In line with these portfolio plans, ten handysize bulkers, four kamsarmaxes and two suezmax tankers have been ordered. Ciner’s story is also separately covered in this issue. Ro-Ro owner’s bulker interest After leaving the travel and

SHIPOWNERS

Turkish Marine Post

Ro-Ro operations giant, Ulusoy Holding, Mr. Yılmaz Ulusoy went on with shipping on his own. He now leads Ulusoy Sea Lines, running three Ro-Ro lines with six vessels. Further to three Ro-Ro’s on order at German yards, Ulusoy Sea Lines also has a tally of bulkers at Chinese Jiangsu Eastern Shipyard. Company recently contracted two more kamsarmax orders at the yard in addition to two 80.000 dwt kamsarmaxes and four 57.000 dwt supramaxes set to roll out within this year. Aktif Shipping, founded by Mr. Ali Umur who originally is a stationery producer, was an internationally well known Turkish player with a significant orderbook prior to the crisis. Following two years of silence, breaking news of three kamsarmaxes during first half of 2010 heralded Aktif’s comeback. Further to the trio booked at SPP, company is said to have sealed a suezmax deal with Nantong Rongsheng in November 2010, involving 4

40 Orders placed by Turkish owners

45 Second hand bulk carriers purchased by Turkish owners

13 Kamsarmax orders placed by Turkish owners in 2010

units with an option to build 2 more. Each of the 157.000 dwt tankers is estimated to cost 62 to 64 million dollars while the vessels are slated for 2013 delivery. Aktif is better known for its ability to place speculative orders at low markets and make dramatic profits, rather than running ships. Mubariz Mansimov’s Palmali, the 130 vessel giant, continues to add to its hefty fleet’s muscle despite crisis. The group last year acquired two resale aframaxes from Greek owners while it is said that it looks to reinforce fleet with one VLCC and one suezmax. Palmali also has 10 river-sea type tankers on order at Besiktas Shipyard further to the 5 orders of the same type at Krasnoye Sormovo. Another shipowner looking to make its comeback after a period of silence is, Akmar Shipping. The company, best known for its handymax operations, place two 82.000 dwt bulkers on order at S. Korean Sungdong Shipbuilding & Marine Engineering shipyard. Scheduled for launching during second half of 2012, each kamsarmax unit is stated to cost 37 million dollars. Akmar had commissioned another S. Korean yard, SPP Shipbuilding, for building of two 59.000 dwt bulkers in 2007 before kamsarmaxes and expects delivery within next year. The company currently owns 6 vessels of various sizes between 45.000 to 53.000 dwt. Meanwhile, Akmar also is a partner in Deniz Nakliyat, a privatised state enterprise, which has two panamaxes and an orderbook composed of four 59.000 dwt supramaxes.

Ciner eyes dozen in 2011 Ciner Group, best known for its media, energy and mining investments across the country, is preparing to receive first two vessels before the end of the year. It appears 2011 will see deliveries of ten more vessels, including suezmax tankers.

edia, energy and mining mogul Turgay Ciner sets foot on shipping like many other prominent business people who are apparently drawn by the unprecedented boom and the following bust that signaled a new opportunity cycle. Ciner Group started with two handysize bulkers and will see ten more join its fleet during 2011. Group aims to raise a mixed fleet of sixteen vessels on medium term. Ciner Group, best known for its media, energy and mining investment across the country, is preparing to admit first two vessels before the end of the year. It appears 2011 will see deliveries of ten more vessels, including suezmax tankers. The group is said to target a fleet of at least twenty vessels consisting evenly of tankers and bulkers. In line with these portfolio plans, ten handysize bulkers, four kamsarmaxes and two suezmax tankers have been ordered. First pair of handysizes are said to have cost 24,5 million US dollars while a further two will follow during in April 2011. First sisters, named “Zafer” and “Faith”, have been booked on time charter with Pacific Basin on three year basis, according to sources. In a statement to weekly Tradewinds, Ciner shipping director Vasileios Papakalodoukas had said they were negotiating with S. Korean Samho Shipyard for another pair of handysizes. This week, the reports revealed that Samho sealed the deal for said 35,200 dwt units. Shipyard hence booked the fifth and sixth vessels from the same company. It seems however Ciner does not only focus on bulkers as Mr. Papakalodoukas said the group ordered two 163.000 dwt suezmax tankers. Despite the initial intent to book four suezmaxes Ciner “took a cautious approach as the prices in the newbuilding and second hand tanker prices display signs of a downturn”. Second half of 2011 will bring better price opportunities, he said. According to Mr. Papakalodoukas, Ciner financed the first quartet of handysizes from equity whilst down payments for kamsarmaxes have been bridged by Garanti International NV. He stated that the group is also at talks with Deutsche Bank, DVB and Credit Suisse, who “lend below 65 percent leverage ratio”. He also added that they would work with foreign bank for post financing of the vessels.

INTERVIEW

Turkish Marine Post

Rising Yıldırım reveals new c Following purchase of 20 percent share in CMA CGM, Chairman Mr. Robert Yüksel Yıldırım sets new goals focusing on primarily Port of Göteborg Container Terminal and a small Belgian leasing company. Many other smaller ports scattered across West Africa, Netherlands, Belgium and Mexican Gulf also attract Yıldırım.

Crises ‘work for’ Yıldırım I As far as we can observe, you run a group that is adept at growing during crises. What is your secret? RYY: Being a “crisis-veteran” group indeed we achieved a record growth during 2001 crisis that shook the country. We did not accomplish that much during this depression, but can not complain as we are aware this stems from proper ruling of our country. As Prime Minister frequently mentions, the crisis “merely touched” our country, which started its rise to prominence in world economy. We have amassed huge liquidity at the onset of crisis and remained idle for a long period. However, believing in our country and its growth momentum, we created a unit called Business Development & Investments andstarted rolling out projects. In general sense we will close 2010 with 35 percent average growth. 2010 has been a recovery year for the world whilst for us it was a year of growth. 2011 will be a year of sustained growth. We are going to implement investment plans we developed during crisis and in addition to the projects mentioned earlier, we are going to triple our high carbon ferrous chrome production within Eti Krom. During the first week of January, new ferrous chrome furnaces are going to be activated. We also plan to increase output in Sweden by 40 percent. We also have an outlook of investing in two mines in West Africa and one mine in the US. We will grow abroad as the Minister of Industry Zafer Caglayan suggests. We have several mining projects, scope of which is to acquire a number of international multi-billion dollar mining companies. As the confidentiality subjects and relevant liabilities are resolved, we will be able to disclose them.

Special report and interview by Ali YILDIZ he ink is still wet on CMA CGM’s 25 November bulletin, which astorished both shipping and finance societies across the globe, for it was an announcement of a partnership that could well be nominated for the “Investment of the Year”. What is of particular interest to Turkey in that news is the involvement of a compatriot within the deal. Yıldırım Group of Companies, with mining as its mainstay has diversified into shipping and port operations throughout the first decade of 2000’s and fascinated shipping sector in 2010 by acquiring 20 percent of CMA CGM along with 3 chairs in the French giant’s board of 10. This 500 million US dollar deal, as we understand from Chairman Mr. Robert Yüksel Yıldırım, heralds other great plans on the horizon...

A unit, set to pursue dreams... Since we made his acquaintance more than 5 years ago, we have known Mr. Yıldırım to be a modest gentleman who kept abreast of world finance society and global economy. During our interview we realize that Yıldırım Group’s historic investment was a produce of Business Development and Investment unit, set-up by Mr. Yıldırım who preferred to pursue his visions rather than adopt

wait-and-see tactics throughout the crisis. As we mentioned before that “this deal heralds other great plans on the horizon”, indeed as they discuss many proposals brought to their attention following their acquisition, new projects both for shipping and the Group’s other fields of activities are set in motion. Leasing for leisure craft First of such, involving shipping is acquisiton of a small Belgian company that engages in leasing and financing of leisure yachts and passenger boats. According to Mr. Yıldırım, “what Hertz and Avis does for cars, this company does in shipping”. Contract defining the terms and conditions of the sale involving 75 percent of Belgian company’s stakes is being drafted. Latter part of plans revealed for shipping involves port investments abroad. As the Group currently owns Yılport, situated at the Gulf of İzmit, it is preparing to channel experience and capital to a couple of mining oriented ports in West Africa as well as having interests in Sweden’s Port of Göteborg Container Terminal. Mr. Yıldırım also states that some small scale, bulk cargo handling Belgian, Dutch and Mexican ports are on their radar.

Yılport to reach 1 MTEU Meanwhile, Yıldırım Group seem to be determined to make extensive improvements in their existing port facilities. According to coordinator Mustafa Kemal Erkanat, second tier of

Turkish Marine Post

INTERVIEW

conquest plans explained. “No need for a hub port in Black Sea” Mr. Yıldırım explains that Yılport investment was considered as a result of increasing traffic across the Black Sea, which called for a hub port. “We thought that since its very difficult and expensive to lead 300 meter long vessels through Bosphorus, an intermediary port could admit 10,000 TEU vessels, unload their cargo and load them to smaller feeders thereby reducing cost and time required” said Yıldırım. He commented that such port investments in the Sea of Marmara, Gulfs of İzmit and İzmir or regions like Mersin and İskenderun “made sense” however he defined Filyos project “a dead one”. investments will commence at Yılport terminal, in addition to the Automated Gate System improvements that provided a 200 percent efficiency boost for gate operations. It is stated that the systems installed by US based Navis and APS Technology companies, is the first of its type in the world and eliminates human error as special cameras recognize container markings and truck plate numbers. Mr. Erkanat indicated that Yılport upped marketing efforts to fill in surplus capacity of 200.000 TEU’s, as the port can now handle 450.000 TEU’s overall, after first tier of investments. Scheduled to start during second half of 2011 following required permissions, the second tier will comprise purchase of 4 STS cranes, and construction of a 450 meter long pier to be completed in 2 years, thereby increasing the overal capacity to 1 million TEU’s. The port, at its existing shape, can admit 14.000 TEU vessels and handle chemical as well as bulk cargoes, Mr. Erkanat

“We hold an option to buy an additional 10 percent for 250 million dollars, should CMA CGM see the need.”

Course steady for ports, yard and fleet When asked whether the group intends to invest further in local ports, Mr. Yıldırım says “For me, it is more logical and feasible to invest in ports abroad, for local port investment regions are exposed to very tough competition, yielding less in a given period. We prefer faster returns on our investments”. Mr. Yıldırım also conveys that group owned Port of Gemlik will see improvements this year starting with expansive construction works. According to Yıldırım, Gemlik will serve as a multipurpose port, with an emphasis on liquid ammonia storage and bulk fertilizer handling. Project has 2 to 3 years for completion and reportedly also involves facility set ups for handling coal, fertilizer chemicals, scrap, steel and even containers. Group’s yard busy until 2015 The Group owned Marmara Shipyard seems to be working in full swing as well. Mr. Yıldırım conveys that the shipyard is booked until 2015 with projects developed on Yıldırım Group’s own account. Marmara Shipyard is apparently commissioned to deliver 2 to 3 vessels annually, starting from 4th of January 2011 when a 6.400 dwt chemical tanker will be launched. Mr. Yıldırım also mentions that the shipyard commenced building one 8.600 dwt and two 11.200 dwt bulkers as well as having started the planning procedures of 6 river going general cargo vessels. Yıldırım owned fleet, in the mean time, currently numbers 14 vessels, 8 of which are chemical tankers and the rest being bulkers. With the said newbuildings, Yıldırım’s fleet will maintain its age profile while for second hand S&P opportunities; Group prefers to wait for markets to pick up.

Yıldırım: “CMA CGM only the first big step” I Can you also briefly mention about your contract with CMA CGM and its scope? RYY: CMA CGM has been our port client since 2004. Dur to the crisis, unfortunately, the company toppled into crisis. In an attempt to find support, they held meetings with American, Qatari and French investment companies, however without any results. We have been also closely following those meetings with our Business Development and Investments Department and eventually approached the company with our own proposal. During July 2010 the company invited us for negotiations. Initially they offered us a small portion of stakes they intended to sell, which was worth 30-50 million US dollars, yet we made our point clear that we were applying on full terms. Following talks that lasted 3 days, first indicative contract was signed which would lead to a second one. Eventually the final contract was drafted on October and signed on November. I Your investment is cited as the purchase of the year in shipping sector... RYY: CMA CGM is the third largest company in its field. The size of investment is 500 million US dollars and what is more unusual is that a Turkish company which is seemingly far less strong compared to an American, a Qatari or a French enterprise accomplished this. One could expect Greek shipowners, who are at the forefront of shipping, should have done it but a modest Turkish company was involved. That is why our investment was picked as “the purchase of the year in 2010”. But in fact, Yıldırım Group did make a

similar investment in 2008 by purchasing one of the top tier ferrous chrome producers, Vargon Alloy of Sweden. I Perhaps that made the good impression…Could you also elaborate the details of the contract? RYY: We bought 20 percent stake in CMA CGM for 500 million dollars, funded by İş Bank, Ziraat, Vakıf, Garanti banks and many other Turkish banks. We hold an option to buy an additional 10 percent for 250 million dollars, should CMA CGM see the need. We are to officially be in possession of our 20 percent stake as from beginning of 2011. I Do you think it will be possible to create a synergy with Turkey and Turkish shipping in general? For instance, concerning shipbuilding, repairs, port operations, crewing or perhaps even technology and know-how transfer? RYY:The first board will convene on the 28th of January 2011. Whenever it is mentioned or wherever we feel it is necessary, we shall make suggestions as regards ship repairs at Turkish yards, Turkish crew and similar other issues. CMA CGM, in addition to container operations, runs over 20 ports under its “Terminal Link” program. Yılport and Terminal Link will make technology and know-how transfers both ways. First practice of such cooperation will take place within the first months of 2011 as Yılport and Freeport in Malta will exchange technical staff. Our port operations arm will benefit the most from CMA CGM deal, in that respect.

SHIPBULDING

Turkish Marine Post

Growing yard eyes Panamax repairs and Navy projects

efine Shipyard, located in Yalova, received the third order from Dutch shipowners who seem content with the first two 13.000 toner general cargo sisters’ quality. As the yard garners praise and attracts new projects, management sets ambitious new goals to make use of their dry-dock and set foot on naval tenders. Yalova-Altınova situated Sefine Shipyard is a 70 million dollar investment built upon 140,000 square meters of land which accomodates a large 240 meter long and 42 meter wide dry-dock capable of handling 90,000 dwt vesses. The yard is capable

processing 11.000 tonnes of steel annually, which translates to 35,000 dwt maximum building capacity. Sefine is owned by an interesting quartet of shareholders among whom are two shipping companies, a construction company and a large car dealer however it is led by General Manager Mr. Oğuz Tanır, who is originally a naval architect and marine engineer. In a press conference last week, Mr. Tanır conveyed the latest situation at their yard. “Our aim is to cooperate with the leading yards around the world and adopt advanced technologies to improve our capabilities and

eventually our market share” he explained, emphasising the fact that they “do not outsource design function and design all the vessels internally in order to reduce costs remain as competitive as possible”.

general vessels was delivered in June, while the second sister on the slipway is to due for delivery during February” he said, also stating they signed the building contract for a third one.

Orderbook stable as ships slip away According to Mr. Tanır Sefine’s current orderbook consists of 4 car/passenger ferries for Dardanelles ferry operator GESTAŞ two of which can take 86 vehicles and 400 passangers while the latter two have same vehicle capacity but 600 passanger capacity, 2 aluminium boats for Turkish Coastal Safety Administration and 2 general cargo vessels of 13.000 dwt. “First of the two

Yard aims to build Navy ships Mr. Tanır said Sefine plans become a bidder in military tenders soon, as they are improving their infrastructure to meet the demands of the Turkish Navy. “We also need to be able to prove how secure the yard is and so we need to obtain some certain certification for facilities and personnel” he said. Mr. Tanır also noted that the yard’s drydock is capable of handling vessels up to 90.000 dwt and expressed their interest to admit large vessels for repairs and surveys.

exhaust emission as welcomed by the Norwegian state” explained Mr. Erdoğan also expressing such high environmental standards could attract incentives for the project. According to Mr. Erdoğan the fishing vessel also fully incorporates a system called “first-time-frozen” which essentially means an onboard fish processing plant packs up the harvest into cleaned, chopped and filleted end product. The plan is to deliver first vessel during August

2011, he said. The latter project, Mr. Erdoğan explaines, is a fish feed carrier that will supply the salmon farms and is equipped with a main engine that runs on LNG. “This is the second commercial project to employ LNG power, beside ferries built previously” he said. This vessel is due for delivery during late 2011. Mr. Erdoğan also reveals live fish carrier deal, details of which, he says, “will surface soon”.

Yalova secures first turn-key Norwegian fishing duo orway, one of the first countries to mention when it comes to deep sea fishing, starts to consider Turkish yards for building its fishing vessels. This also marks a beginning as it is the first time Norwegian buyers show “turn-key delivery” interest, in contrast to previous hullonly orders. Boğaziçi Shipyard, Tersan’s 20 hectare shipyard investment located in Yalova-Altınova is stepping up activities towards more sophisticated projects. After successfully delivering pushing tugs to Brazilian owners, Boğaziçi has

recently undertaken two turn-key Norwegian projects: a deep sea fishing vessel and a feed carrier. Tersan Group Finance and Marketing Manager Mr. Mustafa Erdoğan states that those vessels are “the first two Norwegian orders to be built on turnkey basis in Turkey”, as Norwegian shipowners have been known to order various types of special vessel both in Tuzla and Yalova, however only to be partial completed and towed away for advanced rigging elsewhere. “This vessel is completely dieselelectric driven and produces far less

SHIPBULDING

Turkish Marine Post

Patrol boats meet tight deadline NR Holdings affiliate Istanbul Shipyard delivered five river patrol boats to Romanian Border Protection. According to the yard, boats were ordered on 13th of January 2010 and all of them were delivered last month, making it within the “unusually” tight schedule. Istanbul Shipyard last month handed over five turn-key patrol boats code named “SNR17” which were ordered by the Romanian Border Protection and funded by the European

Turkish energy group introduces powership aradeniz Energy Group designed and completed three floating power plants, namely “Powership”s to be docked at Pakistan and Iraq. Converted from ordinary freighters into massive floating generators at Sedef Shipyard in Tuzla, these vessels will supply megawatts of power to cities in need. Turkish shipyards in cooperation with bright entrepreneurs gather interest in unconventional projects as well as regular commercial vessel projects nowadays. Karadeniz Holding’s energy affiliate Karadeniz Energy Group initially undertook the conversion project of a regular freighter into 144 MW floating power plant equipped with on-board generators driven by large engines. Group hence introduced the “Powership” concept and dubbed her “Karadeniz Powership Doğan Bey”. A sister to this vessel the “Rauf Bey” was their next project with the same capacity and both ships were delivered to Iraqi port of Umm Qasr to support the grid as the war-stricken Basra suffered shortage. Karadeniz Energy also successfully delivered a larger project to Pakistani port of Karachi last year, which can generate 230 megawatts. The group built yet another powership, however this time in Singapore.

“We are proud to see projects we envisaged are coming to life for friendly Middle Eastern, African and Asian countries that suffer energy shortage and have to deal with expensive electricity” said Karadeniz Holding board member Mr. Doğan Karadeniz setting the goal for further growth with similar projects in Asian, African and Middle Eastern regions. He stated that the four vessels’ combined capacity reached 675 megawatts and that total cost to build them exceeded 500 million US dollars. “Power of Friendship” project In line with the same goals Karadeniz Energy Group developed, initiated and currently manages “Power of Friendship” project in an attempt to satisfy urgent power demand that may arise in any country, with vessels that can virtually have access to any port. The group plans to reach 2010 MW capacity with 10 different projects developed initially for a number of countries across Middle East, North Africa and South Asia regions. Since 2003 the group has been exporting electricity to Iraq as a part of “Power of Energy” project and Karadeniz Powership Rauf Bey will reportedly meet about 30 percent of Basra’s electricity demand.

Union. The craft will serve on the Danube River and help prevent terror, smuggling and river pollution. Each boat is said to have cost 1.5 million Euros amounting to a total value of 7.5 million Euros while Istanbul Shipyard attaches more value to them as this project is apparently the first actual defense related export made to a Member State involving security forces. Each boat is 17.3 meter long and is said to be equipped with among others night vision, thermal vision, explosives and narcotics detectors, radars optimized for river operations. Two of the boats are to serve along the Ukrainian border while the remaining three will secure the Moldavian, Hungarian and Serbian borders, respectively.

Treasury reinforces support for shipbuilding redit Guarantee Fund (CGF) enlarges the scope of its system to the benefit of shipping industry. Changes to the old decree modifies the 15 percent physical completion rate stipulation into ‘fiscal’ completion and permits smaller vessels including tugs to benefit. As per the amendments made to the “Decree on Procedures and Principles Concerning Treasury Support to be Provided to Credit Guarantee Funds”, funding costs involved are reduced while shipping industry is

given additional benefits. According to the decree of governing committee, prospective beneficiaries owning more than one vessel are also granted support for the defined “risk group”. This latest adjustment draws tonnage requirements lower for 1000 DWT or 500 GT or larger vessels and now includes tugs, as previously only vessels larger than 1500 DWT or 700 GT were allowed to benefit from the guarantee. New regulation also modifies the 15 percent completion prerequisite into fiscal terms rather

than physical terms which was the former case. Definition of “shipyards” is also one of the items among amendments that ease overall the procedures to apply. Fund no longer seeks Treasury approvals It is furthermore regulated that CGF no longer seeks Treasury approval to adjust or modify rules governing conditions for applicants and bureaucracy involved, as long as these adjustments are in accordance with basic banking procedures now in practice.

7 projects approved Changes in the decree are expected to increase the number of applicants. Turkish Chamber of Shipping Chairman Mr. Metin Kalkavan informs 7 projects out of 25 applications have been approved by the board of CGF as of November, which represents a 70 million dollar portfolio of loans and 45 million dollar worth pledges. Shipbuilding industry has long been expecting concrete steps with the CGF as reportedly more than 100 incomplete newbuildings eye financial support for completion.

SHIPBUILDING

Turkish Marine Post

Turkey aims to lead in specific shipbuilding

emre, one of the prominent shipyards located in the Yalova / Altınova region, attracts the attention of the industry with discrete projects and vessel deliveries amidst ruinous crisis that brought many others to the brink of closedown. As the yard sees building sophisticated vessels -instead of tankers and coastal carriers- will play an important role in the industrial recovery, it aims to build more specialised turn-key service vessels in the region and lead the country to become one of the pioneers in this specific industry. Mr. Sinan Kavala, commercial manager for Cemre Group, says it has proven to be seriously advantageous for the yard to focus on such ships, and furthermore, to build them without any borrowings. “Deep sea type special service vessel market we have been active in received the big blow much later and its effect was less intense. Although our production

rate decreased, we never had to completely come to a halt and managed to deliver the projects timely” tells Mr. Kavala, although he admits they faced no less difficulty in foreseeing the market than the other yards and “had to strive to meet obligations whilst maintaining competitiveness by constantly investing in the yard facilities”. Citing Cemre’s performance in the top 500 Turkish exporters league wherein they rose to number 230 in 2009 with a leap from number 348 in 2008 and as far back as number 535 in 2007, Kavala emphasisez the yard’s success as other yards lost ground. However Mr. Kavala also points out that they “cannot expect any comparable improvement in 2010 when recession is inevitable”. Cemre currently builds a deep sea fishing vessel for Hayvard Group, informed Mr. Kavala, also saying that they have commenced building of 2 platform supply vessels for the same group and set out for building

a 4.800 DWT general cargo vessel to be keel laid before the end of the year. “Employment boosting projects need support” Mr. Kavala thinks despite some thorny floating dock and breakwater issues, all has been well in the region and referring to relations with the state says: “Everybody has to do what is expected of them. We do have problems but those cannot cause a nuisance for long if all parties cooperate and communicate. In fact, we definitely made serious progress in cooperation with other serious investors of the region”. He also insists that every project that has a potential to improve employment rate should be supported. “Turkish yards must not be abandoned to their fate” Mr. Kavala foresees harsh days ahead for Turkish yards, yet believes they can be overcome if faced

collectively. “Turkish shipyards have proven themselves and could be revived taking the right steps” he asserts and expresses the importance of specialised vessel projects. “There is no way we can compete with far eastern yards. We have to prove ourselves with sophisticated designs. We have to make a difference” he says. Mr. Kavala emphasizes that government support in far eastern countries as well as some European countries make an “unjust difference”. He indicates that countries like Poland and Spain quote lower prices compared to Turkish yards and that, Indian yards are the first to respond to middle eastern demand. He says: “I believe collective deals can be developed on an inter-governmental basis. Shipbuilding industry is an important source of revenue and an obvious employment booster that cannot be abandoned to its own fate. It must be supported for overcoming obstacles ahead.”

Coast Guard welcomes second RMK ship MK Marine Shipyard, subsidiary of the largest Turkish conglomerate Koç Holdings, launched the second coast guard vessel in the series of four. Mr. Rahmi M. Koç, Honorary Chairman to the Fortune 500 listed giant, also attended the launching ceremony, as the occasion brought the Turkish Armed Forces and privately held yards closer. The “TCSG Güven”, following the “TCSG Dost” is the second vessel to hit the water in the four ship project that is being carried out at RMK Shipyard. Her elder sister TCSG Dost was

launched during June 2010 and is currently being fitted out with advanced systems onboard, waiting to commence trial voyages shortly afterwards. Honorary Chairman Mr. Rahmi M. Koç of the Koç Holdings, which own the shipyard, also attended the launching ceremony. In his speech to the audience comprised of high rank officials of the Turkish Army as well as many other important guests, Mr. Koç expressed the importance of military and private industry cooperation and emphasized the positive economical impact of such relations.

“However it is imperative that the private sector achieve what is expected from it” he warned, pointing out that “failure to do so will disappoint the Undersecretariat of Defense Industry resulting in the ruin of the cooperation.” Mr. Koç also pointed out to the booming defense industry where figures show a 15 percent growth in number of companies compared to last year. "The sector achieved an export volume of 600 million dollars” he stated, adding that the Undersecretariat looks to surpass 1 billion US dollars next year.

According to the yard the first ship is slated for delivery in 2011 while the latter three will be handed over during 2012. The next pair in the 325 million Euro worth series is to bear the names “Yaşam” and “Umut” respectively. Based on Italian Commandante-Siro class, the 88.4 meter long ships have a displacement of 1.700 tons, being the largest craft in the Turkish Coast Guard Command fleet. The quartet, with maximum speed of 22 knots and range of 3.000 nautical miles at a speed of 15 knots, will permit search and rescue operations at sea state 5 or higher.

SHIPBUILDING

Turkish Marine Post

Palmali names tanker after Azerbaijani hero Aliağa becomes Europe’s ship demolition center zmir’s Aliağa district, a center of industry with manufacturing plants, petrochemical and refinery facilities and host to a ship demolition yard, has become the “ship demolition center” of Europe. The district has been attracting numerous European firms since last year due to its modern ship demolition facilities. A total of 127 ships, mostly from European countries, were demolished at the shipyard in Aliağa in 2009, while 187 vessels were disposed of in the region in the first 10 months of 2010. Adem Şimşek, chairman of the Ship Recyclers’ Association of Turkey (GEMİSANDER), -who was also elected new Chairman of International Ship

İ almali launched its first Armada class tanker m/t Mubariz Ibrahimov, lead ship in the series of ten 7,050 dwt river-sea product carriers. Launched from Besiktas Shipyard in Yalova/Altınova, the ship bears the name of the Azerbaijani National Hero, who was martyred in June 2010. Russian shipping giant Palmali eyes yet another addition to its river-sea fleet, which will be delivered from the Turkish shipyard Besiktas. The launching ceremony of m/t Mubariz Ibrahimov, first tanker in the tally of ten, was attended by Palmali President Mr. Mubariz Mansimov, Beşiktaş Group President Mr. İhsan Kalkavan, Azerbaijan Consul-General Mr. Hasan Sultanoğlu and other industry representatives.

Mr. Sultanoğlu expressed his country’s gratitude as the ship was named after Azerbaijani National Hero Mubariz Ibrahimov. According to the shipyard, Palmali ordered 10 river-sea type tankers, set for delivery throughout 2011 and 2012. Overall, the vessels are estimated to cost 200 million dollars, while it is said that the cost of Mubariz Ibrahimov stood at 16,5 million dollars. Palmali also has 5 orders of the same class outside Turkey, to be built by Krasnoye Sormovo in Russia. Palmali is known to be a major carrier serving SOCAR of Azerbaijan and LUKOIL of Russia in the Black Sea and Caspian regions. The Group has also is said to have secured long-term contracts from TNK-BP.

White listed Turkish flag continues surge urkish flagged vessels’ 2010 performance is expected to give the country another push upward on Paris MoU’s top performing flag states list. Turkey this year hopes to score an excess factor of minus 0.49 which -in statistical languagemeans the country keeps up the good work. Statistics reveal that in scope of Paris Memorandum of Understanding on Port State Control (Paris MoU), 34 Turkish flagged vessels have been reported detained throughout 2010. It is understood that Turkish Undersecretariat for Maritime Affairs has objected to 3 of these detentions and managed to override one of

them while for the latter two appeal procedure is still in progress. As the organization’s 2010 report is expected June 2011, Turkish Undersecretariat, based on self calculations, announced that the excess factor for Turkish flag could be reduced to minus 0.49 from last year’s minus 0.46. Turkish flag had moved up from the “grey” list to the prestigious “white” list on the Paris Memorandum of Understanding on Port State Control (Paris MoU) classification in the organization's 2008 inspection report. Turkish Undersecretariat for Maritime Affairs officials, say in comment to sustained performance that cooperation

between administration and industry played vitally in their efforts. According to officials, Turkey's accession talks with the EU also made a positive contribution to standards and regulations that helped improve Turkey's flag rating. Turkey had been admitted to grey list during 2006, which was considered a significant achievement back then as the country had notoriously remained in the “very high risk” category of the black list for at least 3 years. In this year’s report, Turkey appears among Bermuda (UK), France and the United Kingdom flags, which represent quality flags with a consistently low detention record and high performance.

Recycling Association (ISRA) on December 13, 2010- said the ship demolition facility had been modernized recently, business health and safety conditions at work improved and a total of $10 million spent to prevent pollution. Şimşek also said European maritime firms preferred the Aliağa ship demolition yard thanks to the Aegean town’s environment-friendly facilities. The chairman noted that nearly 1,800 people were employed at the ship demolition yard, adding 152,757 tons of ships had been demolished in the region in 2008, while the figure had risen to 297,881 tons in 2009. “During the first 10 months of 2010, 187 ships weighing 333,280 tons in total were scrapped in Aliaga. Our goal is to reach 425,000 tons by the end of the year. We aim to recycle 98 percent of the ships sent to our region,” he explained. Şimşek said five to six countries currently deal with ship demolition; however, none of these countries have made progress in terms of Europe’s environmental standards. “Turkey is the only country among them that acts in accordance with environmental regulations and EU standards,” he noted. Şimşek added that Turkey does not accept problematic and dangerous vessels, nuclear waste or ships with asbestos for disposal.

SHIPBUILDING

Turkish Marine Post

New shipyard zone attracts foreign interest A dredging company’s foresight might turnout as an invaluable shipyard investment as the project located just outside Tuzla Shipyard Region draws German and Swedish investors. alsan, originally a dredging and port construction company is set to complete a new shipyard area project just outside the Tuzla Region. The area was assigned to Dalsan in 2007 by the state for development of a new shipyard area. It is understood that 75 percent of the dredging and filling works have been completed in addition to 25 percent of the total pier construction. Even at this stage, the new site attract potential buyers, comprised of local as well as foreign parties, which heralds new employment and business opportunities for the region. Mr. Dalsan Chairman, Nusret Coşkun tells that two foreign parties are interested. Among them, German DIC Group has reportedly created

Bosphorus Shipyard and plans to set up a repair yard upon 120.000 square meters with 350 meter long shore line. The yard is planned to admit panamax vessels and over, specifically for repairs and serve with two drydocks, says Mr. Coşkun. The Swedish investor whose name is not disclosed is understood to set up a mega yacht shipyard. “We look to complete at least half of the DIC Group facilities and deliver in commission before 2012” says Mr. Coşkun, adding that the Swedish project has also started gaining momentum to get down to business within the year. Project overlooked since 1995 According to Mr. Coşkun, Dalsan’s shipyard project was sparked in 1995 with an inital petition from Turkish

Nusret Coşkun Shipbuilders’ Association who had envisaged a congestion in the future. Although the project was approved and included in the seventh five year development plan the same year, no

further steps have been taken until 2004, when Dalsan took up the project and conducted studies. Mr. Coşkun tells that eventually Dalsan’s project was taken to Undersecretariat of Maritime Affairs in 2007 and permission were granted at the end of that year. “We could not advance at the pace we desired, due to the crisis” complains Mr. Coşkun, however emphasizing the distance taken during past 4 years “has been promising”. In addition to the already completed 500 meter long pier, construction works of another 2,5 kilometer wharf and infrastructure remains. Depth will be 15 meters at the wharves and 10,5 meters at the drydocks, explains Mr. Coşkun. The project is currently financed by the company’s equity and upfront payments of the investors.

Turkish Marine Post

SHIPBUILDING

Cost-effective bulker attracts owners dry cargo ship order lined up for Bulgarian interests at Gisan Shipyard arouses technical interest as the ship’s light structure permits less costly operation without compromising capacity and speed, shipyard claims.

Gisan Shipyard at Tuzla recently undertook a shipbuilding project that seems to catch much attention of the industry. 16.500 dwt bulker designed by Delta Marine Engineering for Bulgarian interests can attain a top speed of 13 knots, driven by a mere 3.800 kW main engine, an attirbute it

owes to designer as light tonnage of the vessel is only 3.200 tons, according to the specifications. As a result, construction costs and fuel consumption are drastically reduced making the vessel much more profitable. Owner eyes delivery first half Gisan General Manager Türker Yaltır conveyed technical information on the vessel. According to Mr. Yaltır the vessel will have a lenght of 152,5 meters a breadth of 22,5 meters and a draught of 7,5 meters. The ship will be geared with three 45 ton cranes and will cost 15 million US$. “These characteristics draw shipowners’ interest at a time when fuel and steel prices are high. There is a significant added value to this ship as it cost less to

Europort Istanbul almost booked out rganized by NTSR, 11th Internatinal Maritime Exhibition looks set to fill all booths as 90 percent of reservations have been reported booked. The fair this year is expected to attract 600 exhibitors from 32 countries, while estimated attendance surpasses 11 thousand people. Europort Istanbul International Maritime Exhibition invites international maritime players to Istanbul for the 11th time. The fair is organized by NTSR in an exclusive cooperation with the Turkish Chamber and will be held at between 23-26 March 2011 at Istanbul Expo Centre. The premises are also at proximity to Tuzla area, a choice which will surely increase the number of visitors from Turkey’s locus of shipbuilding. Held almost precisely two years ago between 25-28 March 2009, the 10th Europort Istanbul attracted 217 exhibitors representing 610 brands from 34 countries and 7,869 visitors from 48 countries. Netherlands, United Kingdom, Spain, Germany and Greece topped visitors list, followed by visitors from Bulgaria, France, Japan, Belgium, Italy and Scandinavian countries. Mr. Jos van der Vegt, CEO of Ahoy Rotterdam

said in a press release that “what once started as ‘Exposhipping’, a mainly national Turkish exhibition, has now developed into a truly international maritime trade fair in Turkey”. Mr. van der Vegt seems to expect further increase in number of attendants compared to previous fair as he stated that 10th fair had surpassed the 9th one by 40 percent. His Turkish counterpart in the organisation, NTSR General Manager Mr. Serkan Tiglioglu, on the other hand, emphasized that Europort Istanbul offers “a gateway to new market opportunities for the participating companies”. Europort and Mare Forum join forces Meanwhile, it has been announced that this year the two maritime event organisers Europort Istanbul and Mare Forum Istanbul Mare are to join forces and merge the two events into one major fair taking place from 22 to 26 March 2011. Mare Forum Istanbul will reportedly be held one day prior to Europort Istanbul, allowing exhibitors and visitors of Europort to also attend the conference. Likewise, Mare Forum participants will have the opportunity to visit the exhibition.

build and operate it” Mr. Yaltır said and added that if the first is received well, additional vessels can be ordered. It is understood that the vessel is slated for delivery before second half of the year. Gisan continues deliveries Gisan Group having two shipyards in Tuzla and Yalova regions, has the capacity of building up to 21,000 dwt vessels informed Gisan shareholder and Executive Director Mr. Vedat Parlar. “Gisan currently builds a fuel collection vessel for Turkish Coastal Safety Administration and a 21,000 dwt chemical tanker on account of Altınbaş Holding at Yalova in addition to 2,600 dwt chemical tanker and a 16,000 dwt bulker at Tuzla” he said. Shipyard, having booked only two new orders since the crisis broke, plans to focus more on repairs while completing previous orders.

EDUCATION

Turkish Marine Post

Ekol tipped for Singaporean training contract rivate maritime training and certification center Ekol looks to be awarded a contract by Thome Ship Management of Singapore, who paid a visit to the institution premises last month. Far eastern company is understood to seek a nearby training center for Eastern European recruits instead of Philippines. Istanbul based Ekol Seamanship & Training Center, educates officers and seamen to be employed onboard internationally operated ships since 1993. Having recently invested nearly half a million Turkish Lira (325,000 US dollars) the institution now teaches 375 students and 120 course attendants at new facilities equipped with advanced training and simulation systems. Principal Yusuf Sertkaya asserts that the facilities “perhaps house Turkey’s most advances ship safety training center”.

Thome to set training outpost Meanwhile Ekol is at the onset of signing a cooperation contract with Singapore’s Thome Ship Management reveals Deputy Principal Capt. Celil Güven. “Thome Ship Managements paid a visit during December 2010 and were very impressed with the standards we

have achieved and proficiency of the staff” he says. According to Capt. Güven the sides are looking to ink a contract whereby Thome will train Europe, Balkan and FSU recruits at Ekol facilities in Istanbul rather than Philippines. The scope of trainings will include orientation to Thomes in-house systems as well as further technical education. ECDIS focus adds value Providing training services to foreign officers and crew does seem to be a new challenge for Ekol as Capt. Güven emphasizes that the institution provides complementary training for

foreign companies, most significant of them being ECDIS courses. Ekol, since 1998, educates deck and engine room officers to be employed onboard vessel of up to 3,000 gross tons and with 750 to 3,000 kW installed power. The graduate officers can later on continue to attend courses provided for license upgrades, Capt. Güven indicates adding that Ekol also trains other companies’ or organizations’ crew on demand citing Coastal Safety Administration and Arkas Holding personnel as references. Capt. Celil Güven mentioned about Ekol’s subsidiary Akademi, which is understood to train petty officers.

NEWS

Turkish Marine Post

Giants to duel over ferry tender

İstanbul Deniz Otobüsleri A.Ş. (Istanbul Fast Ferries - IDO), municipality owned ferry operator is up for tender just after posting 126 million Turkish Lira (81,3 million dollars) profits ultimo 2010. Ahead of the bidding period, rumors suggest that a strenuous race is expected to take place among domestic and foreign large concerns. Put out to tender effective as from January 2011, İstanbul Deniz Otobüsleri A.Ş. (IDO) attracts domestic conglomerates, foreign funds and strategic buyers alike. Cited local interest include Koç, Sabancı and Boydak groups as the ferry operator’s new owner is expected to be determined before the end of first quarter, following the bidding period scheduled to start 31 January. IDO General Manager Mr. Ahmet Paksoy (PhD), explained in a statement to Turkish Marine Post that the procedures began during second half of 2010 following Istanbul Metropolitan Municipal Board’s resolution. In the following quarter, Mr. Paksoy conveyed, management of lines serving Prince Islands, Golden Horn, Bosphorus and all Water Taxi lines were turned over to another municipal establishment. Named “City Lines” in homage to 160 year old conventional ferry operator that was created during Ottoman Era for public water transportation, the new establishment now manages 34 passenger ferries and 49 terminals, formerly run under IDO, he told.

Growth brings international acclaim 22 year old IDO has attained remarkable success in the past 6 years,

IDO with figures End 2010 Financial Performance Revenues

Profit

EBITDA

390

126

million TL (252 million dollars)

million TL (81,3 million dollars)

million TL (54,8 million dollars)

Projected End 2011 Financial Performance Revenues

Profit

EBITDA

370

120

million TL (238,7 million dollars)

million TL (46,5 million dollars)

million TL (77,4 million dollars)

IDO currently employs 52 vessels on 18 lines running across 36 terminals. The fleet is composed of 10 fast car ferries, 25 fast passenger ferries and 17 car ferries. 34 ships employed on 14 lines running across 49 terminals were turned over to City Lines Administration in September 2010 and will remain in public service.

Ahmet Paksoy as the company rose from a small local ferry operator in 2005 to “World’s Largest Commuter Ferry Operator” in 2009. Company’s growth was fuelled by adoption of ISM Code in fleet operations, implementing ISO management standards and EFQM Excellence Model as well as the merger with conventional ferry lines and newbuilding fleet composed of 7 different type of ships to be employed in intercity services. Vigorous investment

agenda and increased public relations efforts including customer loyalty surveys, promotions and cultural events brought Mr. Paksoy INTERFERRY Presidency for the year 2009. Statistics also display approximately ten-fold performance improvement in 6 years as company reportedly transported over 100 million passengers onboard 52 vessel between 36 terminals compared to 6 year prior’s mere 11 million. Paksoy: “Know-how and human capital surpass asset value” Mr. Paksoy emphasized that IDO’s know-how, built up in the past 22

years is “the principal competence and main capital of the company”. He cited Egypt, Oman, Dubai, Syria and Thailand among countries that approached IDO for know-how transfer involving water bound passenger transport, and said “We are now in a position to provide consultancy or direct project management services to establish passenger lines upon any given waterway across the world”. Mr. Paksoy pointed out to transport opportunities surrounding Marmara Sea Basin and commented “IDO’s future vision can only be as broad as the horizons of those who acquire it”.

MARINE EQUIPMENT

Turkish Marine Post

Gürdesan embarks on propeller production Deck machinery and marine equipment producer Gürdesan continues to expand both in terms of market share and product range. Company last week told Turkish Marine Post about its plans to commence propulsion systems production, in cooperation with a UK based partner.

Mustafa Gürsoy

urkish Marine Post, in this first issue, is pleased to feature Mr. Mustafa Gürsoy, Gürdesan’s Chairman, on these “Marine Equipment” pages. Mr. Gürsoy, who at the same time is a board member of ODEK (Oruç Reis Maritime Society), is the leader and inspiring force behind capable Gürdesan crew. Gürdesan was established in 1982 with onboard equipment repairs as mainstay. However business developed beyond repairs and in time Gürdesan shifted to manufacturing equipment like hatch covers, windlasses and derricks, he tells. According to Mr. Gürsoy, currently the company continues to produce a broad range of marine equipment including deck machinery, rudder systems, hatch covers, cargo cranes and lifesaving equipment in a 2 hectare factory. “On average, foreign origin parts constitute only 20 percent of any given Gürdesan product. I daresay, after 30 years into the industry, we have accumulated a remarkable component know-how which enables us to drag our prices below as much as 30 percent compared to the European products” he says pointing out to company’s in-house manufacturing capabilities and agressive pricing strategy.

Tuzla trends shape production policy According to Mr. Gürsoy, prior to 2002 only 20 percent of Gürdesan’s turnover had stemmed from production whereas the major part had been coming from repairs. During the newbuilding boom period, the ratios have switched places as production then rapidly rose to take up 80 percent of all company activities. “However nowadays we are using 50 percent of overall capacity, evenly shared between repairs and production” he

says. The crisis and the following wave of cancellations seem to have taken their toll on Gürdesan too, as Mr. Gürsoy explains “Over 100 projects that we had been contracted for were cancelled during crisis. Although we were long on inventory to fulfill contracts, we did not opt to impose sanctions, as we think everybody is in the same boat”. Owners “follow quality” Mentioning about Gürdesan’s growth plans, Mr. Gürsoy says that their facilites will soon be extended to cover 4 hectares, doubling the existing Loyout. He emphasized the importance of Far Eastern and Russian exports for Gürdesan where apparently a strong demand is developing. “Our export activity is actually a result of Tuzla’s performance in selling ships abroad. One Tuzla built ship owner later on called us to order equipment for his vessels being built in Taiwan. This is not uncommon to us anymore as foreign owners of Turkish built vessels can actually see Gürdesan quality onboard and compare it to the relatively expensive European or Japanese equipment. We see ourselves in the same league with our global competitors” he says. Propulsion plant underway Gürdesan is also known to take part in Turkish Naval projects, as the company is reportedly commissioned to manufacture deck machinery packages for 10 naval ships. Further news into the company is that propulsion will become a serious new field for Gürdesan as Mr. Gürsoy speaks as follows: “We are looking to start propulsion systems production jointly with a UK based partner. Both fixed pitch and controllable pitch propellers of up to 6 meter in diameter are going to be produced. Although our partner focusses on export oriented production, we hope to be able to meet some domestic demand as well as producing for naval projects”

Turkish Marine Post

MARINE EQUIPMENT

Ensar endures crisis with R&D Fireproof panels, cabins and doors manufacturer Ensar lost one third of its business volume created by yards’ newbuilding projects as crisis swept orderbooks. Meanwhile, the company clinged tightly to R&D that apparently bears fruits for the future. nsar Engineering recently found time to focus on product development which has long been delayed due to massive work load prior to crisis, admits general manager Mr. Özkan Göksal. “We plan to switch to automated manufacturing for some of our products, but we can invest in necessary machinery if the market picks up” he says adding that Ensar is now acting to improve quality based on client feedback. Meanwhile, the company recently announced “multipurpose cover” as a new additon to their product line following succesful

completion of necessary tests. According to Mr. Göksal, the product permits flexible production sizes ranging from 450x600 mm to 500x1.600 mm. With two stainless hinges and three-point bolts, the cover comes with decorative finishes such as wood, textiles, other regular patterns and rudder wheel engraved handles. Mr. Göksal indicates that the product line was launcehd in order to meet costumer demands dating far back. “This cover is infact a very simple product that everybody can manufacture. However, sea environment and onboard usage calls for additional requirements or costumer demands,

which make a special design necessary” he tells. Intended usage areas for the cover includes, spaces left behind contoured ship surfaces, inspectable spaces such as electricity, piping or ventilations shafts over ceiling or wall panels and other inspection points of control units. Mr. Göksal emphasizes the importance of fire safety as even this “simple” product is made of fire proof materials, and combines aestheteics and functionality for wherever the need might be. Ensar plans to launch several other products in the coming months as safety tests are duly passed.

INSIGHT Turkey with figures 2010 Growth Rate

% 6.8 GNP

730

billion US$

2010 Exports Revenue

112,3

billion US$

Turkish controlled merchant fleet

18,9

million dwt

Orderbook

12,8

million dwt

Number of Active Yards and Aggregate Capacity

69 / 3.5 million dwt Number of Yards Under Construction and Capacity

57 / 3,8 million dwt Number of Floating Docks at Turkish Yards

18 Number of Drydocks, Active and Under Construction

9 / 22 Total Number of Active Ports and Piers

176

Turkish Marine Post

Open door policy

expectations and new generation including myself was watching a television show do not know how to handle the rainy days. few days back and the presenter Turkey’s shipping decided to have open door of the show said that they decided this year. Please welcome to Turkey to see the not to take part in the financial vibrant, productive and positive attitude of crisis. I wish we shipping people could shipping. do the same however we are not in First I have to say that what I closely witnessed show business. Turkey’s economy has last two and half years in Istanbul is a refreshment not been affected as much as EU of the industry. To my astonishment the fleet economies but still the stagnant expansion has taken place so quickly and rapidly. neighbours are a big worry here. Many of the investors either first time invested to It has been almost three years since Captain shipping or some of the owners have taken shipping markets taken toll of ongoing Mehmet Altun advantage of relatively cheaper second hand financial crisis. Recently many people purchase prices. Although the freight markets are turn to know everything about financial not so attractive recently the many owners seem to hold on. crisis and no author want stay in an area where so many There is more good news I can phrase from Turkey. Such as experts exist therefore we will not spend much here too. the establishment of new maritime entrepreneurs’ club called Some may argue that the current status of the market ODEK who are making this journal and many more social may even be the way it should be. My expectations are about activities among shipping people possible and more and world shipping to partly stay as it is for at least few more more international attention towards whole Turkey’s years to come because shipping is an industry where finance economy and Turkish shipping industry. Turkey’s tight related parameters have taken over the parameters of banking rules, banks have not been able to make big enough international trade volume. Total increase in worlds overall mistakes to go bust. On the contrary they announced record trade volume was up in 2010. But how much of it felt by profits last year. Sooner or later they will have to sell the shipping companies? Has someone taken jam out of my money stuck in their safes. As a result we have seen more doughnut? Many argue that bosses of finance crisis effected investor friendly banking profile here in turkey. Therefore western economies want to turn their consumers’ attention to have already started to see some recovery from the financial local produce however this may in the long run hit the front here. Turkey’s economy is also expanding at a healthy shipping market badly. But in my view current crisis will end level and as a result shipping industry also expected to when financial headquarters’ decide what to do with the expand at a parallel level. Despite Europe still showing some moneys they command. What I understand from the current uncertainties we are very much used to regularly hear local picture is USA led liberalist world economy is no longer a news about either a foreign companies investment in Turkey good working machine. Neither Friedman’s monetary ideas or a Turkish company’s investment abroad to join forces with nor Keynes’s General Theory working nowadays. Many their European or oriental counterparts. ordinary people like myself asking the same question. Is the Many of the readers would well know that when it comes system changing here? I think yes. Decades of monotonous to shipping and trade customs east of Suez and west of Suez cycles coming to an end therefore finance headquarters need are almost two different worlds. There are many local trade to make a decision to commit themselves to a part of the routes west of Suez and some ships never sail other than world or to tell us the new magic. Last few decades finance north Atlantic and Mediterranean. Many of these ships are enjoyed resting peacefully in north Europe’s and north owned and operated by European companies on the other Americas arms however some already decided to take hand shipyards in Europe are relatively expensive and not advantage of taking early part in supporting fast developing getting any cheaper. But on the other hand there is a eager economies like China and India however many of us can still shipbuilding and ship repair industry waiting for European not think of a finance and trade world without USA simply shipping industry to take more responsibility about placing balancing everything for us. Cut the long story short it may orders, sending their vessels for repair, investing and help take finance world few more years to decide the new keeping Turkish shipbuilding and ship repair industry lively financial system therefore current status there to stay with us for their own future benefits. for some more time. There are two shipping industry fairs to come this year in I think in current climate and periods we should to sit Istanbul. You may use one of these as an excuse to take a few back and think better and stronger structures. Many deferred hours plane ride to Istanbul. Come, meet us and try to planning and alternative-marketing strategies can easily be understand Turkish shipping industry. Get into dialogue with our main subjects during these tough times. Before 2008 for us. You never know. You may still be surprised. few years we were spoiled with constant positive

5th Istanbul Bunker Conference on June Turkish Bunker Association (TBA) is celebrating its 10th anniversary with 5th International Istanbul Bunker Conference to be held on 1-3 june 2011 at Four Seasons Hotel on Bosphorus. ‘Our succesfull past 10 years now is being honoured by 5th conference in 2011 which includes important speakers such as CEO of largest bunker trading company WFS, Bunker Manager of Oldendorff, Clarksons represantatives and IBIA CEO Ian Adams. We are, in the

meantime proud of presenting young Turks who have been very succesfull in their field. Not only Mr Yavuz Kalkavan, CEO of Besiktas Group, Prof Oral Erdogan and Alkin Kalkavan of TURKON, we also introduce young well-known Turks working in our industry abroad in UK and Singapore experts on credits and financial issues who all will be giving valuable speeches for our guests.’ saying Ms Yesim Muhtaroglu, Chairman of TBA.

Turkish Marine Post

ODEK

ODEK aims new generations

ODEK, namely Oruc Reis Maritime Society, organizes meetings encouraging young shipping executives to become mor active within the industry. legislation as they intend to stablished less than 7 months establish direct contact with country ago with the vision to assemble law makers whilst sustaining Turkish shipping businessmen environment of trust among its and create added value via member business people. “It is solidarity, ODEK (Oruç Reis Denizciler impossible for individuals to reveal Kulübü – Oruç Reis Maritime Society) new opportunies abroad, all by has reached more than 65 members and themselves. We intend to send joint apparently set a goal of joint ownership delegations and as first step. Among the investigate newly establihed cooperation society’s aims are to possibilities within guide members through surrounding countries” international investment he says. According to environment and create Mr. Parlar, Central a pool for joint efforts. Asian, Middle Eastern ODEK Secretary General and African countries Mr. Vedat Parlar states “could hold the organisation has opportunities involving been in demand over Vedat Parlar Turkish shipyards”. their anticipations and believes that it will soon reach high Large tonnage “a must numbers in members. “Turkish shipping for coaster owners” society has several other NGO’s and associations that encompass certain The Society is also keen to vocational groups, however some contribute to the long debated businessmen and companies desired to solution for “olding Turkish coastal voice their own concerns as a seperate fleet” as Mr. Parlar addresses the group” explains Mr. Parlar. “We aim to reason for slow growth as “high bring together those who wish to make costs due to incooperative a move jointlyand take other NGO’s like operations”. He indicates that their Turkish Industry and Business intention is to encourage owners to Association (TUSIAD), Independent join their efforts and says “We Industrialists and Businessmen's think coastal vessel owners must Association (MUSIAD) and consider switching to larger Confederation of Businessmen and tonnages, we therefore aim to Industrialists of Turkey (TUSKON) as develop cooperation among model to apply for shipping” he says. owners and other enterprises”. Mr. Mr. Parlar furthermore tells that the Parlar reveals their plans to create Society unites businessmen from diverse a pool with member contributions industrial fields and says that they “seek and acquire a handysize vessel. “If ways to do new things for the industry”. all goes as planned, we shall It is understood that the Society initially consider adding new tonnage to seeks to have a say in maritime realted the pool” he says.