Prof. Dr. Oral Erdoğan calls for unity among Turkish shipowners to tackle high costs and enhance competitiveness in the maritime sector.
Prof. Dr. Oral Erdoğan, Chairman of the Turkish Lloyd Board of Directors, provided an in-depth analysis of the maritime sector at an event organized by KOSDER. He highlighted the loss of capacity in the coastal fleet and the high costs that undermine the competitiveness of Turkish shipowners.
During the panel at the 'KOSDER Members Meet for Breakfast' event, Erdoğan evaluated the structural problems and macroeconomic pressures facing the maritime sector. He emphasized that the biggest structural issue is the 'lack of unity,' pointing to the weakness of the organizational culture.
Erdoğan recalled that, despite the support of the Ministry of Transport during the establishment phase of KOSDER, major tonnage shipowners did not provide sufficient contributions, which he stated has damaged collective intelligence.
He underscored that the coastal fleet has lost its global competitiveness, making a striking observation: 'While we thought we were making progress, ships from China and Vietnam were arriving in Istanbul from the Black Sea. This is not just an economic issue, but a cultural one. Unfortunately, our reflex to collaborate and share risks has not developed.'
In his speech, Erdoğan addressed the challenges of the investment environment in Turkey, presenting numerical evidence that Turkish entrepreneurs do not compete on equal terms with their rivals:
Financing Costs: Turkish companies borrow at interest rates of 9-10% in foreign currency, while South Korean firms can access financing at 2%, and German firms at around 1%.
Labor Cost Pressure: Labor costs in Turkey account for 55-60% of total costs.
He stated that this situation has rendered investments irrational, calling for 'the production of viable and sustainable policies instead of merely pretending to act.'
Erdoğan expressed that the difficulties faced by the real sector are linked to trust issues in capital markets, noting that individual retirement and investment funds are not adequately protected.
He also opened a separate discussion on the rise in gold prices, stating that the increase is related not only to supply constraints but also to strategic shifts in demand. Erdoğan mentioned that countries like the USA, China, and India are diversifying their reserves, adding that the strategic importance of gold has increased with its growing use in technology and industry.
