Transportation emerged with the dawn of first civilizations and is still evolving today. Its development is believed to grow at the same rate almost everywhere in the globe. In this framework, the transport industry is expanding daily, in Türkiye and elsewhere, as its potential becomes more apparent.
Extent of the Transport Industry
When people think of transportation, they typically think of modes of public transport, such as trains, subways, and airplanes; however, the transport industry is far broader than that and includes rail, maritime, road, air and pipeline transport.
Although road transport takes longer than air transport, the former is more prevalent since it is more affordable and accessible. Small freight is best transported by road. Maritime transport is less expensive than other modes of transport; therefore, it is used to transport heavy cargo. The disadvantage of maritime transport is that it is somewhat slow in compared to other modes of transport. Still, it is common since international companies require vast amounts of commodities to be transported.
Today, affordable, safe, and convenient transportation is essential. Entry into new markets requires high-quality, reliable, affordable and fast transportation networks. The developments in the transport industry have a significant impact on the global economy. Efforts and tariffs to lower product prices and deliveries demand a micro and macro assessment of the transport industry. A company’s operations are likely to improve with the timely delivery of items from the plant’s product line to the market.
Türkiye’s Current Position in the Transport Industry
Türkiye is fortunate in terms of its geographical location. Surrounded by ocean on three sides, Türkiye has the potential to create major delivery ports in the Black Sea and the Mediterranean Sea; however, these capacities are still being developed.
Türkiye is not the only country with the potential to dominate in the logistics industry. It faces competition from Greece, Bulgaria, Romania, Russia, Syria and Iran in the logistics market. Therefore, the country must constantly monitor the developments in the ports of those countries, which may emerge into logistical powerhouses like itself.
Potential Problems in the Transport Industry, and Countermeasures
For the last ten years, oil has been the primary source of energy for the transport industry, and almost all modes of transport use liquid fuel. Given the increasing fuel prices at home and abroad, employers find it challenging to maintain the continuous operation of their primary modes of transport.
In that case, companies can seek out preventative legal services to effectively manage their energy policies. Such policies may require some countermeasures, including:
Protecting the transport industry against interruptions in the oil supply in light of the future depletion of oil reserves,
Taking steps to stop any action that might impede competition or seeks to do so,
Diversifying sources of energy by substituting oil with other types of fuel as much as possible.
Moreover, a mistake in customs procedures can lead to severe issues, such as damage to business relationships, and result in waste of time and unnecessary costs for freight carriers.
Difficulties faced during international freight transportation are typically caused by country administrations. Therefore, countries should reach mutual agreements to coordinate diverse freight transport activities.
In this respect, the following may help:
- Exchange of information,
- Research,
- Investment,
- Training, and
- Alternative legal services.
With the proper application of technology, the transport industry can lead to significant and unlimited transformation. The advancement of technology is moving the globe toward economic, political, and cultural globalization. Markets are becoming interconnected, barriers between market economies are crumbling, and distances are shrinking.
An advanced transportation infrastructure has the potential to be a magnet for international activity even if the production costs are low. In fact, businesses deal with increased production and distribution expenses due to transportation challenges. As part of their strategic goals, multinational corporations must adapt to excellent supply chains. This is no longer an option but a need in today’s competitive market.
The world already knows that a considerable distance between markets inevitably results in a loss of efficiency in supply chain dynamics. Therefore, the importance of transportation in reducing distances must be emphasized at every opportunity.
Source
- Entela DIDA, Uluslararası Tedarik Zincirinin Etkinliğini Artırmada Ulaştırma Politikalarının Önemi (Master’s Thesis, Istanbul University, Institute of Social Sciences, Department of Economic Policy, 2009) http://nek.istanbul.edu.tr:4444/ekos/TEZ/44736.pdf