Dr. Murat Korçak: Türkiye's force will be intermodal in global logistics
Dr. Murat Korçak, Deputy Director General of Transport Services Regulation of the Ministry of Transport and Infrastructure, said that Türkiye will become a strong player in the international arena by making its logistics sector more efficient and environmentally friendly with new steps such as railway investments, acceleration of Ro-Ro, Ro-La transportation, increasing the number of intermodal terminals, expanding the scope of the Green Logistics Document, and establishing an umbrella UN Organization for road transportation so that the EU’s carbon neutral application does not become a threat to trade.
Defining intermodal as the automation of transportation processes, Ministry of Transport and Infrastructure (UAB) Deputy General Director of Transportation Services Regulation, Dr. Murat Korçak told UTA Lojistik Magazine about the regulations made in this field, the incentives given, the new steps to be taken and Türkiye’s future goals for intermodal transportation.
What are the advantages of intermodal transport compared to other modes of transport?
Intermodal transportation is a system that enables easy transfer of loads between transportation modes. Although the first thing that comes to mind when it comes to intermodal transportation is the use of containers, the main types called intermodal transportation units (ITUs) are containers, swap-bodies, trailers and semi-trailers. In this respect, it is aimed to benefit in terms of cost, environment and efficiency by using the advantages of different modes of cargo transportation together. In addition, intermodal transportation facilitates many basic processes of freight transportation, such as customs, storage and handling. As the need for cargo handling is reduced, security is increased, damage and losses are prevented and the transportation process becomes faster and more efficient. Since the processes are monitored digitally, optimization studies can be carried out and transportation efficiency can be continuously increased. As a result, intermodal is a kind of automation of transportation processes.
However, the dominant mode of transportation in our country is road transportation. The biggest reason for this is that it is the most flexible mode for transporting cargo. Because it offers a door-to-door journey. For many types of goods, it is usually the fastest and cheapest delivery method, even over long distances.
Although intermodal freight transport is more environmentally friendly, contrary to popular belief, it is on average 56 percent more expensive than the road alternative (1). This difference is due to the cost of lost time and loss of loading capacity. Because, unlike road transport, the rail and sea legs of transport are slower and offer less flexibility. In addition, intermodal transport requires special infrastructures for handling at each shipment point.
Increasing environmental sensitivities and European Union regulations aim to encourage intermodal transport. For this reason, intermodal transport, which combines many modes instead of using a single mode of transport, is emerging as a rising value in our country.
As a result, intermodal transport can reduce the pressure on busy roads by offering better safety and environmental performance. Intermodality refers to taking advantage of the relative strengths of different modes of transport. In this respect, it is a subject we prioritize in our work.
TRANSPORTATION CONTINUES TO CHANGE
What share does intermodal transportation, which has become more talked about after the EU Green Deal, have in freight transportation? How did the net zero target affect the development of this market?
When we examine the European Union transportation data, we see that the share of road transportation increased from 75 percent to 78 percent between 2010 and 2020, the share of railway transportation decreased from 17 percent to 15 percent, and inland waterway transportation decreased from 8 percent to 7 percent ( 1). Although environmental sensitivities increased after the EU Green Deal, the share of road transportation increased slightly compared to more environmentally friendly transportation modes. The increase in e-commerce and demands for faster delivery can explain the increase in the preference for road transportation.
Currently, the transportation sector accounts for almost a quarter of greenhouse gas emissions in Europe. Approximately one-third of this amount is due to road transportation. Unlike other economic sectors in the European Union, CO2 emissions in the transport sector have not decreased, but increased by 24 percent between 1990 and 2019 (1). The European Green Deal demands a 90 percent reduction in greenhouse gas emissions from transportation by 2050. Thus, in line with the Paris Climate Agreement, the EU aims to become a climate neutral economy by 2050. In order to provide a legal basis for this goal, it published the Sustainable and Smart Mobility Strategy in 2020. In addition, infrastructure-related aspects are regulated by the Trans-European Transport Network (TEN-T) adopted in 2013. In addition, there is the Combined Transport Directive of 1992 for intermodal freight transport. In addition, the current ETS Directive will be revised in 2023 and a new emission trading system called ETS2, which will start to be implemented in 2027, has been created, and the fuel used in road transportation will be included. The European Union is slowly but surely moving towards climate neutrality and continues to change the transportation sector.
RO-RO AND RO-LA TRANSPORTATIONS WILL GAIN MOMENTUM
What is the picture in Türkiye?
Within the scope of foreign trade, 14.3 billion tons of cargo were transported in 2023. 12.4 billion tons, which constitutes 86 percent of this cargo, was transported by sea (2). In 2023, the amount of containers handled in our ports increased by 1.5 percent compared to the previous year and reached 12 million 556 thousand 401 TEU. This amount shows that containers have a 12 percent share in tonnage among all cargo handled in our ports. In addition, 704 thousand heavy vehicles were transported abroad by Ro-Ro in 2023 (2).
If we look at rail transport, 1.2 million TEU containers were transported by railways in 2023. When we compare the data, it can be seen that approximately one-tenth of the container transportation is carried out by rail compared to sea transportation (3). When we examine the freight transported by rail in terms of tonnage, a total of 32.4 million tons of freight was transported in 2023, 5.3 million of which were private sector (Körfez, Omsan). If we look at the highway figures, there were 3.7 million trailer, semi-trailer or container truck movements across our borders in 2023 (3). In this context, it seems that the European Union may introduce some cost-increasing measures, especially in our road transportation within the scope of border carbon regulations and the EU green deal. The possible cost increases in road transportation will cause transportation to shift to other modes of transportation and increase intermodal transportation. Currently, Ro-Ro lines are actively used in order to overcome passage document quota problems and long waits at border gates, and Ro-La operations have also started to be used in European transportation. The Turkish logistics sector is a very dynamic and competitive sector. In line with the European net zero target, I think the Ro-Ro and Ro-La transportation numbers in our country will increase.
EU’S CARBON NEUTRAL THREAT WILL BE ELIMINATED WITH AN ROOF ORGANIZATION
What are the steps taken to develop environmentally friendly transportation modes such as intermodal, multimodal or combined transportation in Türkiye?
In particular, modernizing the railway infrastructure is a matter prioritized by our Ministry. It is aimed to increase the current 11 thousand 668 km of conventional railway line in our country to 28 thousand 590 km by 2053. In addition, the average speed of railway lines in freight transportation needs to be increased. A similar move made in passenger transportation with high-speed trains should be made for freight transportation.
Significant investments are being made to develop the connection line networks in our country. There are currently 312 junction lines and the aim is to increase the number and quality of these lines and establish stronger connections between ports and industrial zones. The target of increasing the total connection line length to 652 km has been determined in our 12th Development Plan.
Establishing logistics centers in Türkiye is also an important step that supports the development of intermodal transportation. These logistics centers allow for easy transfer of loads between different modes of transportation, thus saving both time and cost. In our country, 12 logistics centers have been built on our railway lines by the state. The necessary project has been prepared to increase this number to 25 and the work on 10 logistics centers is currently ongoing. However, according to the total capacity of the existing 12 logistics centers, only 5.5 million tons of cargo was handled in 2023, which is far behind the capacity.
On the contrary, centers established and operated by private sector initiatives such as Ankara Logistics Base or Manisa Organized Industrial (MOS) Logistics Center reach significant transportation figures for intermodal operations. With the draft Regulation on Logistics Centers on our agenda, we aim to increase the number of efficient intermodal terminals.
In addition, we are experiencing the lack of an international umbrella organization such as IMO or ICAO that regulates the rules and standards of the road sector and the lack of international agreements that are applied globally as a significant problem. Currently, road transport rules are progressing in the form of the implementation of the EU’s regional rules in nearby geographies. For this reason, we have to struggle with chronic unresolved issues such as driver visas and transit document quotas. However, the reason why there are no visa or quota problems in the maritime or aviation sectors is that the standards of these issues are determined by international agreements to which all relevant states are parties. As a result, as the Ministry, we are taking initiatives to establish an umbrella United Nations Organization that regulates roads. In this way, we want to prevent the EU’s carbon neutral practices from emerging as a threat to our trade.
SCOPE OF GREEN LOGISTICS CERTIFICATE WILL BE EXPANDED
What are the supports given by the public to develop intermodal transportation?
Incentives for combined transport activities include a series of supports that aim to increase efficiency by integrating transport methods. With the Combined Transportation Regulation that entered into force in 2022, Green Logistics Certificates have begun to be issued to transportation business organizers carrying out combined transportation activities. It offers various discounts and supports to businesses with Green Logistics Certificates and provides significant discounts on transportation authorization documents and vehicle card fees. The scope of these incentives will be expanded to include road, rail and maritime transportation owners in the coming period, and will contribute to the development in the sector.
The General Directorate of Maritime Affairs encourages the construction of new ships using environmentally friendly alternative fuels instead of old ships with scrap incentives. This support is implemented by determining cash payments for ship construction and conversion, domestic contribution rate and different rates for ships using environmentally friendly energy systems.
The Ministry of Industry and Technology encourages sustainable investments in the logistics and transportation sector. Within the scope of regional incentives and strategic investments, projects such as railway, maritime and electric transportation vehicles are encouraged, and advantages such as tax and insurance support are offered in the industrial sector. The Ministry aims to encourage sustainable growth in the sector by giving these incentives, especially to Green Logistics Certificate holders.
The Ministry of Trade offers incentives for various service sectors, including the logistics sector, in order to support service exports. While various financial supports are provided in the preparation, marketing and branding stages for export, support is provided especially for the establishment of overseas logistics networks for the logistics sector. In addition, digital supports are also provided for virtual fair participations and market entry activities in order to increase the effectiveness of exports. These incentives aim to increase the competitiveness in the sector and strengthen the effectiveness in global markets.
In the short term, the revision of weight and size regulations in road transport stands out as an important facilitation that can be provided to intermodal transportation. As it is known, our national legislation is implemented based on the 1996 EU legislation in this regard. However, it is known that some member states apply these values differently with national policies. In this respect, it is necessary to provide an incentive for transports using intermodal units in national transports and to grant additional length and weight permits. Of course, the permits to be granted limited to routes and time intervals that will not damage the road structure and will not disrupt traffic safety will have a significant impact in terms of increasing transport capacities and reducing costs in our country.
‘WE WILL MAKE TURKEY AN EXEMPLARY COUNTRY’
What are the new trends affecting the intermodal transportation market? What would you like to say about the future and size of the market?
There are two main trends driving the logistics industry today: The first is the transition to environmentally friendly, carbon-neutral transportation, and the second is the increasing role of digitalization and automation technologies in competition.
Smart logistics solutions facilitate the tracking of cargo movements, while providing cost and time savings. In particular, blockchain technology increases the transparency of transportation processes and ensures data security in the supply chain. For example, thanks to blockchain technology, real-time tracking of cargo can be done and processes can be managed more efficiently. Artificial intelligence-supported analyses also make demand forecasts more accurate, allowing more efficient use of resources.
Intermodal transportation stands out as an environmentally friendly mode of transportation. Investments made and incentives that can be given for the development of intermodal transportation in Türkiye are of great importance in terms of both environmental sustainability and economic efficiency.
Our biggest goal is to make Türkiye an exemplary country in these areas, especially with our investments in green logistics and digitalization. With the amendment made in the Decree Law No. 655; the necessary arrangements were made to support all R&D Projects in the railway and maritime sectors with the R&D Budget of our Ministry and to achieve digital transformation and zero emission targets in these areas. With the recent amendment made in the Ports Law, a fee will be collected for the greenhouse gas emissions released by commercial ships based on the EU Emission Trading System carbon prices, and the amounts will be used to support green maritime R&D studies. As a result, encouraging intermodal transportation in Türkiye ensures that logistics processes take on an environmentally friendly and economic structure, while also contributing to the country’s achievement of sustainable development goals. Türkiye is moving towards becoming a stronger player in the international arena with the investments it makes and the incentives it implements to make its logistics sector more efficient and environmentally friendly. In the future, it is anticipated that intermodal transport will become even more central to Türkiye’s logistics strategy and that significant gains will be achieved in terms of both economic growth and environmental sustainability thanks to the new steps to be taken in this direction.
(1) EU Intermodal freight transport 2023 raporu
(2) https://denizcilikistatistikleri.uab.gov.tr/
(3) https://uhdgmistatistik.uab.gov.tr/