19
Expert View
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macy of our “Group of Change” (high voting
rate but less representation at the Assembly).
I would like to point out that we will con-
tinue our discourses emphasizing the fact that
change is not something to be afraid of, espe-
cially changes at professional organizations
could increase the dynamics and synergy and
improve quality of service, that would encour-
age the emergence of new faces and ideas and
we will support the steps by current Executive
board in their good work towards the general
interest of our members.
SeaNews: The shipbuilding industry in
Turkey has been one of the most adverse-
ly effected sectors due to crisis. What are
your predictions for needs to be done to
the Turkish shipbuilding industry in gen-
eral and Altınova region in particular?
Salih Zeki Çakır:
There are two aspects of
this issue. One is the shipbuilding industry,
the other side is the sub-industry. Turkey
could not compete in production with the
largest shipbuilding facilities like in Korea,
China and Japan. Rather, Turkey should adopt
European strategies. In this context:
- The entry of advanced technology to the
shipyards should be accelerated, suppliers
directly biased toward exports,
- The possibilities of niche projects that
requires standard and strong design and mass
production should be looked for;
- Costs should be further reduced by joint
purchase methods of services, manpower and
equipment;
- Turkey’s large import-export potential in
line with the 2023 targets should be reflected
in shipbuilding, for example:
• Estimating the future cargo potential, the
need to build new ships might be obtained,
• Based on the potential, ships might be pro-
vided with long-term freight guarantees;
• Such freight guarantees might be assigned to
a new funding model as earnings and thus the
model might be strenghtened.
The new shipyard facilities in Turkey should
be established in a form to enable fast and effi-
cient repair service as well. Also there will be
great opportunities at the coaster type general-
dry cargo market in the coming years. Active
fleet in the Eastern Mediterranean reduced by
one sixth in the last 4 years and there is no
such ship in the order book.
Increase in the export-oriented military proj-
ects might create a chance. But here, SSM
(Undersecretariat of Defense Industry), has
it’s own policy which aims to support certain
shipyards in order to protect national secrets
and keep the development within a certain
circle. As a result, if Turkey, after a certain
point, comes to a situation to export defense
technology, having a number of large and
small shipyards compared to the samples
abroad which have one big shipyard instead,
could bean exceptional example in this regard,
I think.
Besides, production of offshore units also
increasing rapidly in Turkey. To put it for-
ward shortly, we need niche markets, featured
vessels and we need to push the boundaries.
Today shipyards need to respond hundreds of
price bids without any guarantee of contract,
need to employ their engineers to do that, they
have no other choice.
In this era it will not be possible to have new
contracts for shipyards without great effort,
without calling for new markets, without visit-
ing many trade fairs one by one.
SeaNews: How would you comment on
the production of a domestic main en-
gine as it is the case with TÜLOMSAŞ;
do yu think it is feasible?
Salih Zeki Çakır:
Our country was producing
main engine once upon a time. This production
could continue, if the need did not emerge for
diverting the possibilities of Pendik Shipyard
to Navy, after 1999 İzmit earthquake. This
was a great opportunity which already missed
but as with every issue, here is an opportu-
nity for progress too. Today, there is now
a worldwide quest for new technologies of
main ship engines. The introduction of regula-
tions for thin fuel combustion, expanding the
boundaries of ECA (Emission Control Area)
will increase the demand for economic and
ecologically designed main engines.
In this respect, with common words, there
is no need for Turkey to reinvent the wheel,
but this work requires very serious attention
to R & D.
SeaNews: As an expert who closely fol-
lows the freight rates, can you assess the
latest situation?
Salih Zeki Çakır:
Since the beginning
of May, the Baltic Dry Index continues to
decline, and reduced coal demand of India
due to Monsoon season and ending of harvest
season in South America are also factors for
that. Capsizes having difficulty in Atlantic
region but expectations for them rising in
the Mediterranean. Both the Atlantic, the
Mediterranean, as well as in the Black Sea
strong rise seen for handysize and handymax
markets, but owners are facing difficulty
to keep freight rates at certain levels. The
distress created by supply of new ships into
market will likely to continue at the large ton-
nage. When it comes to small tonnage, disap-
pointment continues at the Black Sea, all eyes
turned to strong grain output which begins
in July. In Mediterranean, West part surviv-
ing with the demand from North African
countries. In Northwest Europe and continent,
vessels which are young and are in good
condition make earnings pretty much over
the running costs but freights in the region
tended to decline. In the forecoming sum-
mer season declines can be seen in Black Sea
and Mediterranean regions due to effect of
Ramadan. However, if the expected increase
in the activity and improvement in Europe
can be realized, it might have reflections in
the freight markets as well.
SeaNews: The container giants increas-
ing their services in the region with
bigger TEU ships. How could Turkish
container-feeder carriers find chance in
this fierce competition? What they need
to do?
Salih Zeki Çakır:
This question is better to
be asked to a person with more expertise in
container port operations or freight move-
ments, but, I can say that there is a permanent
need for feeder services in our region. Ports
infrastructure in the region will not meet all
of these large ships and that will enable feeder
carriers to continue with their lives, but in the
medium term due to unfavorable develop-
ments in the container freight market they
will obviously suffer. In the meantime, this
is an important issue is that large companies
have started to open their own offices. SCT
exemption in fuel could be a big incentive for
domestic freight and passenger transportation
but due to some problems with it’s application
and due to VAT, domestic container ship trans-
portation can not progress. Feeder container
shipments to North Africa and the Eastern
Mediterranean seems to be interrupted due to
Arab Spring.
SeaNews: How did you find SeaNews
magazine?
Salih Zeki Çakır:
As mentioned previously I
prefer it published only in English or it will be
better only in Turkish. The target group should
be assessed sorrectly and positioning should
be done accordingly. It would be a correct
choice to publish more news related to ship-
ping economy. Having a layout which is both
rich and having an easy to read content, such
as Economist magazine, will further increase
your value.
SeaNews: Thank you very much for this
interesting interview; and we would like
to share your views on markets with our
readers in our next issues.
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