New shippersclub hunts for first shipODEK, namely Oruc Reis MaritimeSociety, looks to acquire first handysize ship to be jointly owned and operated on account of disposedmembers. Page 23

Horizon eyes livestock conversionFollowing a rigorous buying move to add 7 handysizes to its fleet, Horizondevises plans to exploit a newopportunity in the livestock shippingniche by converting a Ro-Ro. Page 6

Rising Yıldırım revealsnew conquest plans

Following purchase of 20percent share in CMA CGM,Chairman Mr. Robert YükselYıldırım sets new goals focusingon primarily... Pages 10-11

Government toughenssea policyOwners and ship masters will beimposed new responsibilities onmatters such as ballast dischargezones, satellite tracking, environmentalP&I clauses and..... Page 4

Year: 1 � Issue: 1 � Jan-Feb. 2011

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Small tonnage operators inTurkey are close to achievingtheir long neglected goal of fleetrenewal as Turkish and Dutch

ministries of transportation last weekagreed on initial terms to support TurkishCoastal Merchant Fleet Renewal Project.Owners have set out to incorporate ajoint-stock company in line with the

project which was first introduced morethan 10 years ago.

Talks with Netherlands concerning therenewal of Turkish coastal fleet panned outas Dutch delegation that visited TurkishMinistry of Transport last week indicativelyagreed on a high leverage and long termfinancial package against partial sovereignguarantee... Page 7

Growing yardeyes Panamaxrepairs andNavy projectsSefine Shipyard, located inYalova, received the thirdorder from Dutch shipownerswho seem content with thefirst two 13,000 dwt generalcargo sisters’ quality.Page 12

White listedTurkish flagcontinuessurgePage 15

New shipyardzone attractsforeign interestA dredging company’sforesight might turnout as aninvaluable shipyardinvestment. Located justoutside Tuzla ShipyardRegion, the project drawsGerman and Swedishinvestors.

Page 16

Cost-savvybulker attractsownersA dry cargo newbuilding linedup for a Bulgarian company atGisan Shipyard sparkstechnical interest. The ship’slight structure permits lesscostly operation withoutcompromising capacity andspeed, shipyard claims.

Page 17

Giants to duelover ferrytenderPage 19

Substantial steps on the decade old project:

Coaster owners pool for renewal outfit

Marine PostInternational Sound of Turkish Shipping

Turks leap forwardwith newcomers

Fresh entrants lead the surge in Turkish orderbookportfolio as it consists of over 40 newbuildings linedup in 2010. 13 of these orders are Kamsarmaxes.Turkish owners acquired further 45 bulkers in thesecond hand market. Page 16

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 adecade their country would have one of the world’smost enviable economies (which expanded 8percent in 2010 and is forecasted to grow another7.5 percent in contrast to anticipated 3 percentEuropean growth), they would probably havelaughed”.

In fact if mentioned that a Turkish company would becomestakeholder of a giant like CMA-CGM; that Turkish flag would be white-listed and that the country’s owners and yards would be cited among topshipping nations, a reporter like myself would -though challenged withpatriotism deep inside he might be- probably have laughed. Nevertheless,development does not only manifest itself in figures…even the advent ofnew industry related organizations and publications hint

Turkish Marine Post is, for the time being, the latest of suchpublications. Just as the society it gives voice to -Oruç Reis ShippingSociety or ODEK- is the latest of such organizations. This first issue coversplenty of material on ODEK as readers are also kindly encouraged tocheck www.odek.org for detailed information on the society.

However, introducing our paper, Turkish Marine Post, should be a taskof mine. Having enjoyed a long and fruitful stint with the official magazineof Turkish Chamber of Shipping between 1999 and 2010, I had the chanceto witness Turkish economy and Turkish shipping prosper and catch theattention of foreign companies. Designed in a dual format in both Turkishand English, this publication was also shipped abroad, however hardlyreaching correct destinations. When ODEK officials, in line with their visionto make Turkish market better known across the globe, shared their ideato release a worldwide publication with me and Editor-in-Chief MuratErdoğan, we compounded it with our very own impression of theinformation source gap, discouraging those who are interested in Turkishshipping outside Turkey. Thus Turkish Marine Post was born, “for the timebeing” printed only in English. We are determined and confident that wewill let spirit of development shape this publication, just as it shapedTurkish shipping into prominence. We wish to be together with you, ourboth local and international readers, for many years aided by all forms ofyour 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 thesecopies will be distributed across Europe, North Africa, Middle East,Balkans, Russia and some Central Asia countries. Of the internationalrecipients, 10 percent will be NGO’s, administration, consulates or othersimilar offices, 70 percent will be shipowners and 20 percent will beagencies and brokerage firms, while it is needless to mention our effortsto extend the list…

For all sorts of feedback, suggestions, contributions or advertisement inquiries, please send your messages to editor@turkishmarinepost.com

Owner, on behalf of ODEKMurat DALYAN

Administration:Rauf Orbay Cad. Uğurlu Sokak

Deniz Park Villaları No: 8 Tuzla / İstanbul / Türkiye

Phone: +90 216 701 28 44 Fax: +90 216 701 28 21tmpost@odek.org

www.odek.org

Managing EditorVedat PARLAR

�

Editor-in-chiefMurat ERDOĞAN

�

General Coordinator Ali YILDIZ

DesignSenih ULUDAĞ

�

EditorEngin KOÇAK

editor@turkishmarinepost.comwww.turkishmarinepost.com

Print

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TİC. LTD. ŞTİ.Topkapı - İSTANBUL

Tel: 0212 565 56 82

The publisher is not responsible for the options of their correspondents. Any part of the Turkish Marine Post may be reproduced by stating source.

Tu

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Ali YILDIZ

Published bi-monthly

Turkish Undersecretariat forMaritime Affairs is set to gettougher with marine safetyand pollution prevention. The

administration seeks legal ways tostipulate environmental P&I clauses forall vessels passing through the straitsas it has already adopted regulationsthat hold P&I cover mandatory for all

ships calling at Turkish ports.According to bureaucrats, someshipowners are known to disablecertain clauses in order to cut back onpremium costs while some P&Iinstitutions refuse to coversubstandard ships fully. Both casesreportedly have severe outcomes forthe Turkish administration, as in the

event of an incident “it becomesimpossible to find a respondent forclaims” sources say.

Undersecretariat prepares for new ballast rules Another project the

Undersecretariat has resolved todevelop involves ballast watermanagement. It is understood thatwith joint efforts of TurkishScientific and TechnologicalResearch Institute (TUBITAK) andthe Undersecretariat, a study hasbeen conducted to assess andreduce the risks untreated ballastwater poses. As “InternationalConvention for the Control andManagement of Ships BallastWater & Sediments” is expected toenter into force this year, it isunderstood that Turkishauthorities devise plans forcompliance. The study aims tolocate the most suitable ballastzones off the coasts where marinehabitat is less likely to containinvasive species. Administrationhas already put the efforts intopilot practice at the port of BOTAŞ,where ships are required to replaceballast water at an indicated zone.Turkey is cited among the first tiercountries to adopt the ballastconvention, according to which allships will have to be outfittedballast water treatment systemsbefore 2015.

EMSA aids pollution battleFurther news is that Turkey has

participated in “Clean Sea Net”, aservice developed by the EuropeanMaritime Safety Agency (EMSA)for ship source pollutionmonitoring and environmental

surveillance. It is learnt that from nowon the administration will be able toidentify ships which cause pollution viasatellite systems. Fines ranging from 5to 120 thousand Turkish Liras basedon gross tonnage will be imposed on“culprit” vessels in addition to possibleport state detention. Following a 6month familiarization period, thesystem is expected to start running atfull capacity this month.

Minister draws tariff sword Meanwhile Turkish Government,

eager to reduce ever increasing tankertraffic across the straits, plans toreassess passage fees based on a rulethat was originally used as per theMontreaux Convention, which is inforce -despite several amendments-since 1936. In a statement last week,Turkish Energy and Natural ResourcesMinister Mr. Taner Yıldız emphasizedthat “Turkey could exercise its right totariff passages using the Gold Francmethod, set on Montreaux”. Yıldız alsoexpressed the government’sunwillingness to resort to suchmeasures since it would mean seriousincreases in passage fees, howeverwarned that they “could consider ifthere were no more options left”. Mr.Yıldız also commented that increasingthe fees could provide some comfort forTurkey despite its negative impact ontransport companies and said “Weshould fine tune such an optimum ratethat can secure the nature and historicalbeauties of Istanbul”. He explained thatthe straits see 18 large tanker passagesper day, translating to some 150 milliontones of crude oil per annum. Turkeycharges an approximate of 150 milliondollars every year as passage fees,which seems to be regarded a smallprice for the risk.

Government toughenssea policyOwners and ship masters will be imposed newresponsibilities on matters such as ballastdischarge zones, satellite tracking, environmentalP&I clauses and more importantly Golden Francsystem to be employed for strait passings.

4 Turkish Marine PostENVIRONMENT

Turkish Marine Post 5

Turkish shipowners rank thirdafter Greek and Chineseshipowners in the dry cargoS&P league last year, reveals

N. Cotzias’s annual report. Accordingto the statistics, Turkish controlledentities acquired 45 bulkersthroughout 2010, granting them thethird place, in terms of number ofunits purchased.

Sale & Purchase markets this year,seem to have exceeded expectationsamid tonnage oversupply concerns forfollowing years. Powerful Greekshipowners, who did not seem to be ina hurry in 2009, make it over the topin 2010 again.

According to a recent reportissued by the century old shipbrokersN. Cotzias Shipping Group in Piraeus,Greek acquisitions account for 24,6percent of the total second hand dry-cargo purchase volume consisting of243 vessels worth approximately 5,9billion US dollars.

Greek owners also top tanker S&Plists as they acquired 82 tankers worth

approximately 3.5 billion US dollars,nearly making up for 29 percent of allthe deals worldwide. On the otherhand, number of bulk carriers sold bythe Greek owners is 167.

Meanwhile, Chinese shipowners -besides becoming the new orderbookchampions- also seem quite interestedin the second hand bulk carriermarket, figures show. Havingpurchased 205 vessels worth 3,3billion US dollars that account for

almost 18 percent of the salesmovements, Chinese owners are therunners-up.

They are, however, hardly anymatch for Greek tanker owners, asthey spent merely about half a billionUS dollars for 30 tankers. Aperformance seven-folded by Greeks,who spent 3,5 billion US dollars for 82tankers.

The report highlights success ofTurkish shipowners, who had been

known to invest vigorously. They rankthird in the list as 45 dry-cargo shipsworth 311 million dollars have beenacquired during 2010.

Although the overall tonnage ofthe acquisitions remain modest,Turkish owners’ appetite for vessels isfurther confirmed with another reportissued by TradeWinds, which suggeststhat further 13 vessels of various othertypes have been purchased during2010, making over 60 vessels.

According to an extensive studyconducted by the TurkishUndersecreatary for MaritimeAffairs, Turkish fleet is set to

grow in general. However report alsoreveals that Turkish owners nowadaysfavor foreign flags rather than thenational register.

Statistics in the book issued by the

Undersecretariat suggest that as at 1January 2010 Turkish owned fleet over100 GT totals 2.222 vessels accountingfor 18,9 million dwt. Taking 1,000 GTand over into consideration, Turkishflagged fleet capacity is 6,7 million dwtwhile capacity outside the flag amountsto 8,6 million dwt.

The report also reveals that from2003 and onward, Turkish ownersopted for so called “flags-of-convenience” to register their newacquisitions. National tonnage has beensteady for the past 7 years whilst foreignflagged Turkish fleet has increased form2 million dwt to some 10 million dwt.

Turkish controlled 2.222 vessels arescattered across 42 country flags, which

include European countries likeSweden and Italy as well as Tanzania,Togo and Dominican Republich whichare less prominent. Malta tops the chartin terms of tonnage with 228 vesselsrepresenting 4,7 million dwt. Secondmost favored flag appears to beMarshall Islands who gained much inpopularity lately. 70 vessels with anaggregate tonnage of 2,7 million dwt flyMarshall Islands flag while the ageprofile is 6,1. Maltese flagged fleetseems to be older as average age profileis 11,5 however Turkish national fleetwith 1.136 vessels average 24 years,only to be surpassed by the age profileof Panama flagged Turkish vessels thatscore an average of 25.

Fleet to exceed 35 million dwtUndersecretariat for Maritime

Affairs provided more elaborateinformation with this report comparedto previous reports it issued. Besides the18,9 million dwt active fleet the reportseparately analyses the Turkishnewbuilding orderbook. It suggest that180 vessels totaling to 12,8 million dwtcapacity have been ordered yet not keel-laid as of 1 January 2010. Building of101 vessels with 2 million dwt capacityhave actually been commencedaccording to the report, which means ifall orders are to be successfullydelivered to Turkish owners, thenation’s fleet capacity may increase over35 million dwt in a couple of years.

Greeks and Chinese top S&Pcharts while Turks follow

Open registeries gut Turkish flag

Turkish shipownersrank third after Greekand Chineseshipowners in the dry cargo S&P leaguelast year.

Recent statistics suggest that whilst Turkish national fleet numbers remainsteady, fleet controlled by Turkish owners under open registeries shows rapidgrowth. Meanwhile the overall fleet is poised to double as new orders kick in.

NEWS

Horizon Shipping continues togrow with recent vesselacquisitons as it caught a lotof eye in Turkey with second

hand purchases during the depressing2009-2010 periods. Outpacing thetraditional Turkish shippingentrepreneurship mentality, thecompany sets a dynamic example bypushing its own limits.

Immediately after Turkey liftedban on livestock and processed meatproduct imports, the company hasseen the opportunity and startedimporting live cattle form Uruguayand Australia via ships. Horizon seeslivestock shipping operations as apromising business arm andcontemplates further investments.

According to board member Mr. FatihÇalışkan, company looks to acquireand convert a candidate Ro-Ro vesselso as to commission her specificallyfor this purpose. It is understood thatthe purchased vessel will beconverted in Tuzla in full complianceof relevant international regulationsand ship 6.500 head of cattleworldwide.

Invited investors to raise fundsMr. Çalışkan told that the

company was created in 2004 to own5 coastal traders and 2 handysizevessels. “We managed to exploitopportunities that have sprung upduring crisis due to falling prices andpurchased 7 second handhandymaxes” he said adding that thefunds required has been raised by

calling for interested parties toparticipate in Horizon’s capital. Thecompany now runs a fleet of 15vessels with an age profile of 17 yearsand mostly Turkish flagged. While the5 older coastal traders are consideredfor scrapping, the proceeds will mostlikely be reinvested as upfrontpayments of 4 handysize orders, Mr.Çalışkan revealed.

Following a vigorous buyingmove to add 7 handysizes to itsfleet, Horizon devises plans toexploit a new opportunity in thelivestock shipping niche byconverting a Ro-Ro.

6 Turkish Marine PostYOUTHFUL INSIGHT

Horizonis an affiliate of Çalışkan

Group; originally a breeding, foodproduction and trade company

established in 1986. Çalışkan Groupunderwent major restructuring during 2002 tocover other business fields including furniture

production, coal mining and oil products. During2004 Çalışkan ventured into shipping with

Horizon Shipping. Another significant shippinginvestment under Çalışkan’s management is

ISTER, Iskenderun Shipyard, animportant repair and maintenance

spot in the EastMediterranean.

Horizon eyes livestock conversion

“Major factor in our success is perhapsmy lack of experience in shipping thatdrove us towards bold investments despitethe crisis” told Mr. Fatih Çalışkan, “becauseif otherwise had been the case, wherebywe had years of experience, I believe wewould hesitate a lot, moving hither andthither”. However he emphasizes thatinvesting at the right time to the righttonnage must have been achieved as aresult of careful consideration and mutualprevision. Mr. Fatih Çalışkan, cordiallyremarks, “Diligent studies, combined withsheer rookie luck, enabled Horizon to grow

despite crisis”.Horizon’s 29 year old board member is

a 2004 Fatih University graduate with adegree on management. After graduationhe has been to UK for a year to improvelanguage. He has later on moved toÇalışkan Group’s headquarters inGaziantep and honed his business skills atthe Group owned Sumo Coal, whichengages in South African coal miningoperations. He took up his post withinHorizon during 2008 and since then hasbeen responsible for commercial fleetoperations.

Horizon in brief

Inexperience overcomes reluctance

Turkish Marine Post 7

Small tonnage operators inTurkey are close to achievingtheir long neglected goal offleet renewal as Turkish and

Dutch ministries of transportation lastweek agreed on initial terms tosupport Turkish Coastal MerchantFleet Renewal Project. Owners haveset out to incorporate a joint-stockcompany in line with the projectwhich was first introduced more than10 years ago.

Talks with Netherlandsconcerning the renewal of Turkishcoastal fleet panned out as Dutchdelegation that visited TurkishMinistry of Transport last weekindicatively agreed on a high leverageand long term financial packageagainst partial sovereign guarantee.On Turkish end of the deal, it appearspressure from Turkish TransportMinister Binali Yıldırım to start theproject prior to 2011 general electionsresulted in a fast paced series ofactions.

Turkish delegation led byTransport Ministry DeputyUndersecretary Capt. Suat Hayri Aka,resolved that a Koster Yatırım A.Ş.(Coaster Investment Corp.), will befounded, pooling capital from ownersas well as the Undersecretariat forMaritime Affairs. First newbuildingcan be keel-laid within two months,according to sources, who also indicatethat the deal comprises a hefty 50vessel order with an option to build 50more.

Dutch ask state backingPreconditions set for the Dutch

loan includes country’s equipments tobe imported for fitting onboard thevessels as well as a 30 percent

sovereign guarantee. It is understoodthat Netherlands will facilitate a loanwith a 14 year repayment profileincluding a 2 year grace period thatcovers 80 percent of each vessel.Based on a reference design, dubbed“Turkish Star” each 5.000 dwt vesselis estimated to cost 8 million USdollars.

The interest rate for the deal ismentioned as 3 percent. ISTFIX’s(Istanbul Freight Index) founder Mr.Salih Zeki Çakır, having first handinformation on the details, toldTurkish Marine Post that Turkish sidehas been negotiating to raise theleverage to 85 percent whilstmaintaining the collateral structure,which only focuses on shipmortgages.

According to Capt. Çakır aminimum of 100.000 dollars can beinvested while total participationwill be capped at 1 million dollars.“First 50 ships have been planned as5,000 toners however the second 50vessel series can be larger, based onmarket circumstances” he said. Capt.Çakır indicated that the outfit willhave a “semi-official structure withthe Undersecretariat’s involvement”mentioning about the possibility ofinviting larger organizations likeTurkish Chamber of Shipping at alater stage. Reportedly 50 percent ofthe first ship’s cost is alreadycollected from a group of investors,including Capt. Çakır himself as heclaims that another 25 companiesare keen to pay in and start buildingother ships. “This can also yieldvitally for Turkish yards which are indire need of business” he said,emphasizing the project’ssignificance.

NEWS

Substantial steps on the decade old project:

Coaster owners pool for renewal outfit

8 Turkish Marine PostSHIPOWNERS

Whether they be rooted shipping companies withdecades of experience or confident businessmen whoventure into shipping seeing great opportunities,Turkish shipping entrepreneurs appear to be rising to

prominence amid crisis. Throughout 2010, far eastern shipyardshave received over 40 orders from Turkish controlled companieswhich seem to favor handysize and kamsarmax bulkers as well assuezmax tankers. Second hand markets have also seen muchinterest from Turkish owners. Based on number of second handbulkers acquired, recent statististics list Turkey as the thirdaggressive country following Greece and China. Figures indicatethat Turkish owners have purchased over 60 vessels, 45 of whichare bulkers consisting mainly of handysizes.

Yalçın Sabancı’s legacyTurkish businessmen have long been aware of shipping which

lured many investors with its high returns during the boomingyears. However extremely high prices have been the major factorthat quenched their enthusiasm. The global crisis and entailingtumble of prices only served as a tool to remove the entry barriersfor those businessmen. Mr. Yalçın Sabancı, who encroachedshipping territory during a similar crisis in 1999, created YA/SAthat became one of the two largest Turkish shipping companies in11 years. He now constitutes the role model for other players. Theresult is billion dollars of Turkish capital flowing into shippingthrough not only second hand acquisitions but also new orders.New wave of big players also impact positively upon traditionalprofile of the country’s shipping society.

Mr. Hüsnü Özyeğin, a former banking mogul and currentchairman of Fiba Holding has been the first businessman to followSabancı’s footsteps. He established Fors Shipping in 2007 andbooked many chemical tanker orders at Tuzla Yards, meanwhilealso trying to pick up port operations via buying out Kumport in a255 million US dollar deal. Same year, he established Tankinvestin an equal partnership with Dünya Shipping and lined up 5tanker orders worth 245 million US dollars. First trio of the 52.000

Second Sabancı reaches half a billion in orders

Densa Shipping, which was created amid crisis by the Sabancı dynastymember Mr. Ömer Sabancı, is venturing boldly into shipping as its orderline-up reaches 550 million US dollars. Mr. Ömer Sabancı is the secondSabancı to establish himself in shipping business after Mr. Yalçın Sabancı

of YA/SA. Starting with a second hand bulker in 2008, Densa Shipping has beenexpanding into shipping with resale acquisitions. Recent reports from Far Easternyards and S&P dealers suggest that the company now has 17 vessels on order set fordelivery until mid 2012.

Densa initially purchased a 2002 built bulker at 22,7 million US dollars, shortlyto be followed by a deal involving a resale of five supramaxes worth 175 million USdollars. Four of those vessels have been reported delivered.

During 2010, Densa started placing orders with South Korean yards as two57.300 dwt bulkers with an option of further two were lined up with STX. The twooptions were converted to orders during March, while the quartet, altogetherestimated 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 dollarsand 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 bulkersworth 165 million US dollars was reportedly placed with Samho, due for September2011 delivery.

Recent orderbook reports suggest that Hyundai Heavy Industries and is alsotaking share of Densa’s newbuilding initiative, as well. HHI is said to have sealed apair of Suezmax tanker deals during August and booked a Capesize order with anoption 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.

Turkish shipbuilding industry,better known for boutiquebuilding and chemical tankersat focus, seems to be capable of

building larger vessels as well. Deliveryof the “Kaptan Arif Bayraktar”, a 58.000dwt supramax bulk carrier, gave a morale boost to the woeful industry.

The vessel, built at private shipyards at Tuzla, was turned over to ownersBayraktar Shipping with a ceremony attended by notable figures of Turkish shippingand shipbuilding society. Bayraktar Group’s Chairman Mr. Erhan Bayraktar, in hisspeech during the ceremony, noted the size of the vessel and pointed out tocapabilities of Tuzla yards. Having been hit by cancellation waves, Tuzla yards havebeen seeking their way out of stagnation with Naval projects and specific buildings.Industry specialists comment that although it is rather premature, edging towardshandy-class larger vessels could prove feasible, provided that costs are reduced.

Turks leap fnewcomers

First supramax raises spirits in Tuzla

Turkish Marine Post 9SHIPOWNERS

dwt series were delivered lastyear, while it is said thatdelivery of the latter pair hasbeen postponed to 2012.

Another Sabancı sets footDensa Shipping, frequently

compared with YA/SA -as it isestablished by Mr. Ömer Sabancıwho descends from the samedynasty- commenced shippinginvestments in September 2008and rapidly made 20 shipinvestments.Further details ofDensa’s foray into shipping canbe found on these pages.

Another conglomerate, CinerGroup, best known for its media,energy and mining investmentacross the country, is preparingto make its debut into shippingsociety by admitting first twovessels before 2012 into its fleet.The group is said to target a fleetof at least twenty vesselsconsisting evenly of tankers andbulkers. In line with theseportfolio plans, ten handysizebulkers, four kamsarmaxes andtwo suezmax tankers have beenordered. Ciner’s story is alsoseparately covered in this issue.

Ro-Ro owner’s bulker interest After leaving the travel and

Ro-Ro operations giant, UlusoyHolding, Mr. Yılmaz Ulusoywent on with shipping on hisown. He now leads Ulusoy SeaLines, running three Ro-Ro lineswith six vessels. Further to threeRo-Ro’s on order at Germanyards, Ulusoy Sea Lines also hasa tally of bulkers at ChineseJiangsu Eastern Shipyard.Company recently contractedtwo more kamsarmax orders atthe yard in addition to two80.000 dwt kamsarmaxes andfour 57.000 dwt supramaxes setto roll out within this year.

Aktif Shipping, founded byMr. Ali Umur who originally is astationery producer, was aninternationally well knownTurkish player with a significantorderbook prior to the crisis.Following two years of silence,breaking news of threekamsarmaxes during first half of2010 heralded Aktif’s comeback.Further to the trio booked atSPP, company is said to havesealed a suezmax deal withNantong Rongsheng inNovember 2010, involving 4

units with an option to build 2more. Each of the 157.000 dwttankers is estimated to cost 62 to64 million dollars while thevessels are slated for 2013delivery. Aktif is better knownfor its ability to place speculativeorders at low markets and makedramatic profits, rather thanrunning ships.

Mubariz Mansimov’sPalmali, the 130 vessel giant,continues to add to its heftyfleet’s muscle despite crisis. Thegroup last year acquired tworesale aframaxes from Greekowners while it is said that itlooks to reinforce fleet with oneVLCC and one suezmax. Palmalialso has 10 river-sea typetankers on order at BesiktasShipyard further to the 5 ordersof the same type at KrasnoyeSormovo.

Another shipowner lookingto make its comeback after aperiod of silence is, AkmarShipping. The company, bestknown for its handymaxoperations, place two 82.000dwt bulkers on order at S.Korean Sungdong Shipbuilding& Marine Engineering shipyard.Scheduled for launching duringsecond half of 2012, eachkamsarmax unit is stated to cost37 million dollars. Akmar hadcommissioned another S.Korean yard, SPP Shipbuilding,for building of two 59.000 dwtbulkers in 2007 beforekamsarmaxes and expectsdelivery within next year. Thecompany currently owns 6vessels of various sizes between45.000 to 53.000 dwt.Meanwhile, Akmar also is apartner in Deniz Nakliyat, aprivatised state enterprise,which has two panamaxes andan orderbook composed of four59.000 dwt supramaxes.

forward withs

Ciner eyesdozen in2011Ciner Group, best known for itsmedia, energy and mininginvestments across the country, is preparing to receive first twovessels before the end of theyear. It appears 2011 will seedeliveries of ten more vessels,including suezmax tankers.

Media, energy and miningmogul Turgay Ciner sets footon shipping like many otherprominent business people

who are apparently drawn by theunprecedented boom and the followingbust that signaled a new opportunity cycle.Ciner Group started with two handysizebulkers and will see ten more join its fleetduring 2011. Group aims to raise a mixedfleet of sixteen vessels on medium term.

Ciner Group, best known for its media,energy and mining investment across thecountry, is preparing to admit first twovessels before the end of the year. Itappears 2011 will see deliveries of ten morevessels, including suezmax tankers. Thegroup is said to target a fleet of at leasttwenty vessels consisting evenly of tankersand bulkers. In line with these portfolioplans, ten handysize bulkers, fourkamsarmaxes and two suezmax tankershave been ordered.

First pair of handysizes are said to havecost 24,5 million US dollars while a furthertwo will follow during in April 2011. Firstsisters, named “Zafer” and “Faith”, have beenbooked on time charter with Pacific Basin onthree year basis, according to sources.

In a statement to weekly Tradewinds,Ciner shipping director VasileiosPapakalodoukas had said they werenegotiating with S. Korean Samho Shipyardfor another pair of handysizes. This week,the reports revealed that Samho sealed thedeal for said 35,200 dwt units. Shipyardhence booked the fifth and sixth vesselsfrom the same company.

It seems however Ciner does not onlyfocus on bulkers as Mr. Papakalodoukas saidthe group ordered two 163.000 dwtsuezmax tankers. Despite the initial intent tobook four suezmaxes Ciner “took a cautiousapproach as the prices in the newbuildingand second hand tanker prices display signsof a downturn”. Second half of 2011 willbring better price opportunities, he said.

According to Mr. Papakalodoukas, Cinerfinanced the first quartet of handysizes fromequity whilst down payments forkamsarmaxes have been bridged by GarantiInternational NV. He stated that the group isalso at talks with Deutsche Bank, DVB andCredit Suisse, who “lend below 65 percentleverage ratio”. He also added that theywould work with foreign bank for postfinancing of the vessels.

The face of Turkish shipping society ischanging to reflect what seems to be amore financially driven and globallycompetitive league of owner profile.

40Orders placed by Turkish

owners

45Second hand bulk carriers

purchased by Turkish owners

13Kamsarmax orders placed by

Turkish owners in 2010

The ink is still wet on CMA CGM’s 25November bulletin, which astorished bothshipping and finance societies across theglobe, for it was an announcement of a

partnership that could well be nominated for the“Investment of the Year”. What is of particularinterest to Turkey in that news is the involvement ofa compatriot within the deal. Yıldırım Group ofCompanies, with mining as its mainstay hasdiversified into shipping and port operationsthroughout the first decade of 2000’s and fascinatedshipping sector in 2010 by acquiring 20 percent ofCMA CGM along with 3 chairs in the French giant’sboard of 10. This 500 million US dollar deal, as weunderstand from Chairman Mr. Robert YükselYıldırım, 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 amodest gentleman who kept abreast of worldfinance society and global economy. During ourinterview we realize that Yıldırım Group’s historicinvestment was a produce of Business Developmentand Investment unit, set-up by Mr. Yıldırım whopreferred to pursue his visions rather than adopt

wait-and-see tactics throughout the crisis. As wementioned before that “this deal heralds other greatplans on the horizon”, indeed as they discuss manyproposals brought to their attention following theiracquisition, new projects both for shipping and theGroup’s other fields of activities are set in motion.

Leasing for leisure craftFirst of such, involving shipping is acquisiton of

a small Belgian company that engages in leasing andfinancing of leisure yachts and passenger boats.According to Mr. Yıldırım, “what Hertz and Avisdoes for cars, this company does in shipping”.Contract defining the terms and conditions of thesale involving 75 percent of Belgian company’sstakes is being drafted.

Latter part of plans revealed for shippinginvolves port investments abroad. As the Groupcurrently owns Yılport, situated at the Gulf ofİzmit, it is preparing to channel experience andcapital to a couple of mining oriented ports in WestAfrica as well as having interests in Sweden’s Portof Göteborg Container Terminal. Mr. Yıldırım alsostates that some small scale, bulk cargo handlingBelgian, Dutch and Mexican ports are on theirradar.

Yılport to reach 1 MTEUMeanwhile, Yıldırım Group seem to be

determined to make extensive improvements intheir existing port facilities. According tocoordinator Mustafa Kemal Erkanat, second tier of

Rising Yıldırım reveals new cFollowing purchase of 20 percent share in CMACGM, Chairman Mr. Robert Yüksel Yıldırım sets newgoals focusing on primarily Port of GöteborgContainer Terminal and a small Belgian leasingcompany. Many other smaller ports scatteredacross West Africa, Netherlands, Belgium andMexican Gulf also attract Yıldırım.

10 Turkish Marine PostINTERVIEW

� As far as we can observe, you run a group that is adept atgrowing during crises. What is your secret?

RYY: Being a “crisis-veteran” group indeed we achieved arecord growth during 2001 crisis that shook the country. We did not

accomplish that much during this depression, but can not complainas 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 amassedhuge liquidity at the onset of crisis and remained idle for a long period.

However, believing in our country and its growth momentum, we createda 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 developedduring crisis and in addition to the projects mentioned earlier, we are going to triple our high carbonferrous chrome production within Eti Krom. During the first week of January, new ferrous chromefurnaces are going to be activated. We also plan to increase output in Sweden by 40 percent. We alsohave an outlook of investing in two mines in West Africa and one mine in the US. We will grow abroadas the Minister of Industry Zafer Caglayan suggests. We have several mining projects, scope of which isto acquire a number of international multi-billion dollar mining companies. As the confidentialitysubjects and relevant liabilities are resolved, we will be able to disclose them.

Special report and interview by Ali YILDIZ

Crises ‘work for’ Yıldırım

Turkish Marine Post 11

investments will commence at Yılportterminal, in addition to theAutomated Gate Systemimprovements that provided a 200percent efficiency boost for gateoperations. It is stated that thesystems installed by US based Navisand APS Technology companies, is thefirst of its type in the world andeliminates human error as specialcameras recognize containermarkings and truck plate numbers.

Mr. Erkanat indicated that Yılportupped marketing efforts to fill insurplus capacity of 200.000 TEU’s, asthe port can now handle 450.000TEU’s overall, after first tier ofinvestments. Scheduled to startduring second half of 2011 followingrequired permissions, the second tierwill comprise purchase of 4 STScranes, and construction of a 450meter long pier to be completed in 2years, thereby increasing the overalcapacity to 1 million TEU’s. The port,at its existing shape, can admit 14.000TEU vessels and handle chemical aswell as bulk cargoes, Mr. Erkanat

explained. “No need for a hub port in Black Sea”Mr. Yıldırım explains that Yılport

investment was considered as a resultof increasing traffic across the BlackSea, which called for a hub port. “Wethought that since its very difficultand expensive to lead 300 meter longvessels through Bosphorus, anintermediary port could admit 10,000TEU vessels, unload their cargo andload them to smaller feeders therebyreducing cost and time required” saidYıldırım. He commented that suchport investments in the Sea ofMarmara, Gulfs of İzmit and İzmir orregions like Mersin and İskenderun“made sense” however he definedFilyos project “a dead one”.

Course steady for ports, yard and fleetWhen asked whether the group

intends to invest further in local ports,Mr. Yıldırım says “For me, it is morelogical and feasible to invest in portsabroad, for local port investmentregions are exposed to very toughcompetition, yielding less in a givenperiod. We prefer faster returns onour investments”. Mr. Yıldırım alsoconveys that group owned Port ofGemlik will see improvements thisyear starting with expansiveconstruction works. According toYıldırım, Gemlik will serve as amultipurpose port, with an emphasison liquid ammonia storage and bulkfertilizer handling. Project has 2 to 3years for completion and reportedlyalso involves facility set ups forhandling coal, fertilizer chemicals,scrap, steel and even containers.

Group’s yard busy until 2015The Group owned Marmara

Shipyard seems to be working in fullswing as well. Mr. Yıldırım conveys thatthe shipyard is booked until 2015 withprojects developed on Yıldırım Group’sown account. Marmara Shipyard isapparently commissioned to deliver 2to 3 vessels annually, starting from 4thof January 2011 when a 6.400 dwtchemical tanker will be launched. Mr.Yıldırım also mentions that theshipyard commenced building one8.600 dwt and two 11.200 dwt bulkersas well as having started the planningprocedures of 6 river going generalcargo vessels. Yıldırım owned fleet, inthe mean time, currently numbers 14vessels, 8 of which are chemical tankersand the rest being bulkers. With thesaid newbuildings, Yıldırım’s fleet willmaintain its age profile while forsecond hand S&P opportunities; Groupprefers to wait for markets to pick up.

INTERVIEW

conquest plans

� Can you also brieflymention about your contract withCMA CGM and its scope?

RYY: CMA CGM has been ourport client since 2004. Dur to thecrisis, unfortunately, the companytoppled into crisis. In an attempt tofind support, they held meetingswith American, Qatari and Frenchinvestment companies, howeverwithout any results. We have beenalso closely following thosemeetings with our BusinessDevelopment and InvestmentsDepartment and eventuallyapproached the company with ourown proposal. During July 2010the company invited us fornegotiations. Initially they offeredus a small portion of stakes theyintended to sell, which was worth30-50 million US dollars, yet wemade our point clear that we wereapplying on full terms. Followingtalks that lasted 3 days, firstindicative contract was signedwhich would lead to a second one.Eventually the final contract wasdrafted on October and signed onNovember.

� Your investment is cited asthe purchase of the year inshipping sector...

RYY: CMA CGM is the thirdlargest company in its field. Thesize of investment is 500 million USdollars and what is more unusual isthat a Turkish company which isseemingly far less strong comparedto an American, a Qatari or aFrench enterprise accomplishedthis. One could expect Greekshipowners, who are at theforefront of shipping, should havedone it but a modest Turkishcompany was involved. That is whyour investment was picked as “thepurchase of the year in 2010”. Butin fact, Yıldırım Group did make a

similar investment in 2008 bypurchasing one of the top tierferrous chrome producers, VargonAlloy of Sweden.

� Perhaps that made the goodimpression…Could you alsoelaborate the details of thecontract?

RYY: We bought 20 percentstake in CMA CGM for 500 milliondollars, funded by İş Bank, Ziraat,Vakıf, Garanti banks and manyother Turkish banks. We hold anoption to buy an additional 10percent for 250 million dollars,should CMA CGM see the need. Weare to officially be in possession ofour 20 percent stake as frombeginning of 2011.

� Do you think it will bepossible to create a synergy withTurkey and Turkish shipping ingeneral? For instance,concerning shipbuilding, repairs,port operations, crewing orperhaps even technology andknow-how transfer?

RYY:The first board willconvene on the 28th of January2011. Whenever it is mentioned orwherever we feel it is necessary,we shall make suggestions asregards ship repairs at Turkishyards, Turkish crew and similarother issues. CMA CGM, inaddition to container operations,runs over 20 ports under its“Terminal Link” program. Yılportand Terminal Link will maketechnology and know-howtransfers both ways. First practiceof such cooperation will take placewithin the first months of 2011 asYılport and Freeport in Malta willexchange technical staff. Our portoperations arm will benefit themost from CMA CGM deal, in thatrespect.

Yıldırım: “CMA CGMonly the first big step”

“We hold an option to buy anadditional 10 percent for 250

million dollars, should CMACGM see the need.”

Growing yard eyes Panamaxrepairs and Navy projects

Yalova secures firstturn-key Norwegianfishing duo

Sefine Shipyard, located inYalova, received the thirdorder from Dutch shipownerswho seem content with the

first two 13.000 toner general cargosisters’ quality. As the yard garnerspraise and attracts new projects,management sets ambitious new goalsto make use of their dry-dock and setfoot on naval tenders.

Yalova-Altınova situated SefineShipyard is a 70 million dollarinvestment built upon 140,000 squaremeters of land which accomodates alarge 240 meter long and 42 meterwide dry-dock capable of handling90,000 dwt vesses. The yard is capable

processing 11.000 tonnes of steelannually, which translates to 35,000dwt maximum building capacity.Sefine is owned by an interestingquartet of shareholders among whomare two shipping companies, aconstruction company and a large cardealer however it is led by GeneralManager Mr. Oğuz Tanır, who isoriginally a naval architect and marineengineer.

In a press conference last week, Mr.Tanır conveyed the latest situation attheir yard. “Our aim is to cooperatewith the leading yards around theworld and adopt advanced technologiesto improve our capabilities and

eventually our market share” heexplained, emphasising the fact thatthey “do not outsource design functionand design all the vessels internally inorder to reduce costs remain ascompetitive as possible”.

Orderbook stable as ships slip awayAccording to Mr. Tanır Sefine’s

current orderbook consists of 4car/passenger ferries for Dardanellesferry operator GESTAŞ two of whichcan take 86 vehicles and 400passangers while the latter two havesame vehicle capacity but 600passanger capacity, 2 aluminium boatsfor Turkish Coastal SafetyAdministration and 2 general cargovessels of 13.000 dwt. “First of the two

general vessels was delivered in June,while the second sister on the slipway isto due for delivery during February” hesaid, also stating they signed thebuilding contract for a third one.

Yard aims to build Navy shipsMr. Tanır said Sefine plans become

a bidder in military tenders soon, asthey are improving their infrastructureto meet the demands of the TurkishNavy. “We also need to be able to provehow secure the yard is and so we needto obtain some certain certification forfacilities and personnel” he said. Mr.Tanır also noted that the yard’s dry-dock is capable of handling vessels upto 90.000 dwt and expressed theirinterest to admit large vessels forrepairs and surveys.

Norway, one of the firstcountries to mention whenit comes to deep seafishing, starts to consider

Turkish yards for building its fishingvessels. This also marks a beginningas it is the first time Norwegianbuyers show “turn-key delivery”interest, in contrast to previous hull-only orders. Boğaziçi Shipyard,Tersan’s 20 hectare shipyardinvestment located in Yalova-Altınovais stepping up activities towards moresophisticated projects. Aftersuccessfully delivering pushing tugsto Brazilian owners, Boğaziçi has

recently undertaken two turn-keyNorwegian projects: a deep seafishing vessel and a feed carrier.Tersan Group Finance and MarketingManager Mr. Mustafa Erdoğan statesthat those vessels are “the first twoNorwegian orders to be built on turn-key basis in Turkey”, as Norwegianshipowners have been known toorder various types of special vesselboth in Tuzla and Yalova, howeveronly to be partial completed andtowed away for advanced riggingelsewhere.

“This vessel is completely diesel-electric driven and produces far less

exhaust emission as welcomed by theNorwegian state” explained Mr.Erdoğan also expressing such highenvironmental standards couldattract incentives for the project.According to Mr. Erdoğan the fishingvessel also fully incorporates asystem called “first-time-frozen”which essentially means an onboardfish processing plant packs up theharvest into cleaned, chopped andfilleted end product. The plan is todeliver first vessel during August

2011, he said. The latter project, Mr. Erdoğan

explaines, is a fish feed carrier thatwill supply the salmon farms and isequipped with a main engine thatruns on LNG. “This is the secondcommercial project to employ LNGpower, beside ferries builtpreviously” he said. This vessel is duefor delivery during late 2011. Mr.Erdoğan also reveals live fish carrierdeal, details of which, he says, “willsurface soon”.

12 Turkish Marine PostSHIPBULDING

Turkish Marine Post 13

Treasury reinforces support for shipbuilding

Credit Guarantee Fund(CGF) enlarges the scope ofits system to the benefit ofshipping industry. Changes

to the old decree modifies the 15percent physical completion ratestipulation into ‘fiscal’ completionand permits smaller vesselsincluding tugs to benefit. As per theamendments made to the “Decree onProcedures and PrinciplesConcerning Treasury Support to beProvided to Credit GuaranteeFunds”, funding costs involved arereduced while shipping industry is

given additional benefits. Accordingto the decree of governingcommittee, prospective beneficiariesowning more than one vessel arealso granted support for the defined“risk group”.

This latest adjustment drawstonnage requirements lower for 1000DWT or 500 GT or larger vessels andnow includes tugs, as previously onlyvessels larger than 1500 DWT or 700GT were allowed to benefit from theguarantee. New regulation alsomodifies the 15 percent completionprerequisite into fiscal terms rather

than physical terms which was theformer case. Definition of “shipyards”is also one of the items amongamendments that ease overall theprocedures to apply.

Fund no longer seeks Treasury approvalsIt is furthermore regulated that CGF

no longer seeks Treasury approval toadjust or modify rules governingconditions for applicants andbureaucracy involved, as long as theseadjustments are in accordance with basicbanking procedures now in practice.

7 projects approvedChanges in the decree are expected

to increase the number of applicants.Turkish Chamber of Shipping ChairmanMr. Metin Kalkavan informs 7 projectsout of 25 applications have beenapproved by the board of CGF as ofNovember, which represents a 70million dollar portfolio of loans and 45million dollar worth pledges.Shipbuilding industry has long beenexpecting concrete steps with the CGFas reportedly more than 100incomplete newbuildings eye financialsupport for completion.

SHIPBULDING

Turkish energy groupintroduces powership

Karadeniz Energy Group designedand completed three floating powerplants, namely “Powership”s to bedocked at Pakistan and Iraq.

Converted from ordinary freighters intomassive floating generators at Sedef Shipyardin Tuzla, these vessels will supply megawattsof power to cities in need.

Turkish shipyards in cooperation withbright entrepreneurs gather interest inunconventional projects as well as regularcommercial vessel projects nowadays.Karadeniz Holding’s energy affiliate KaradenizEnergy Group initially undertook theconversion project of a regular freighter into144 MW floating power plant equipped withon-board generators driven by large engines.Group hence introduced the “Powership”concept and dubbed her “KaradenizPowership Doğan Bey”. A sister to this vesselthe “Rauf Bey” was their next project with thesame capacity and both ships were deliveredto Iraqi port of Umm Qasr to support the gridas the war-stricken Basra suffered shortage.Karadeniz Energy also successfully delivered alarger project to Pakistani port of Karachi lastyear, which can generate 230 megawatts. Thegroup built yet another powership, howeverthis time in Singapore.

“We are proud to see projects weenvisaged are coming to life for friendlyMiddle Eastern, African and Asian countriesthat suffer energy shortage and have to dealwith expensive electricity” said KaradenizHolding board member Mr. Doğan Karadenizsetting the goal for further growth withsimilar projects in Asian, African and MiddleEastern regions. He stated that the fourvessels’ combined capacity reached 675megawatts and that total cost to build themexceeded 500 million US dollars.

“Power of Friendship” projectIn line with the same goals Karadeniz

Energy Group developed, initiated andcurrently manages “Power of Friendship”project in an attempt to satisfy urgent powerdemand that may arise in any country, withvessels that can virtually have access to anyport. The group plans to reach 2010 MWcapacity with 10 different projects developedinitially for a number of countries acrossMiddle East, North Africa and South Asiaregions. Since 2003 the group has beenexporting electricity to Iraq as a part of “Powerof Energy” project and Karadeniz PowershipRauf Bey will reportedly meet about 30percent of Basra’s electricity demand.

Patrol boats meet tightdeadline

SNR Holdings affiliate IstanbulShipyard delivered five river patrolboats to Romanian Border Protection.According to the yard, boats were

ordered on 13th of January 2010 and all ofthem were delivered last month, making itwithin the “unusually” tight schedule.

Istanbul Shipyard last month handed overfive turn-key patrol boats code named “SNR-17” which were ordered by the RomanianBorder Protection and funded by the European

Union. The craft will serve on the DanubeRiver and help prevent terror, smuggling andriver pollution. Each boat is said to have cost1.5 million Euros amounting to a total value of7.5 million Euros while Istanbul Shipyardattaches more value to them as this project isapparently the first actual defense relatedexport made to a Member State involvingsecurity forces.

Each boat is 17.3 meter long and is said to beequipped with among others night vision,thermal vision, explosives and narcoticsdetectors, radars optimized for river operations.Two of the boats are to serve along the Ukrainianborder while the remaining three will secure theMoldavian, Hungarian and Serbian borders,respectively.

Cemre, one of the prominentshipyards located in theYalova / Altınova region,attracts the attention of the

industry with discrete projects andvessel deliveries amidst ruinous crisisthat brought many others to the brinkof closedown.

As the yard sees buildingsophisticated vessels -instead oftankers and coastal carriers- will playan important role in the industrialrecovery, it aims to build morespecialised turn-key service vessels inthe region and lead the country tobecome one of the pioneers in thisspecific industry. Mr. Sinan Kavala,commercial manager for CemreGroup, says it has proven to beseriously advantageous for the yardto focus on such ships, andfurthermore, to build them withoutany borrowings. “Deep sea typespecial service vessel market we havebeen active in received the big blowmuch later and its effect was lessintense. Although our production

rate decreased, we never had tocompletely come to a halt andmanaged to deliver the projectstimely” tells Mr. Kavala, although headmits they faced no less difficulty inforeseeing the market than the otheryards and “had to strive to meetobligations whilst maintainingcompetitiveness by constantlyinvesting in the yard facilities”.

Citing Cemre’s performance inthe top 500 Turkish exporters leaguewherein they rose to number 230 in2009 with a leap from number 348in 2008 and as far back as number535 in 2007, Kavala emphasisez theyard’s success as other yards lostground. However Mr. Kavala alsopoints out that they “cannot expectany comparable improvement in2010 when recession is inevitable”.Cemre currently builds a deep seafishing vessel for Hayvard Group,informed Mr. Kavala, also sayingthat they have commenced buildingof 2 platform supply vessels for thesame group and set out for building

a 4.800 DWT general cargo vessel tobe keel laid before the end of theyear.

“Employment boosting projects need support”Mr. Kavala thinks despite some

thorny floating dock and breakwaterissues, all has been well in the regionand referring to relations with thestate says: “Everybody has to dowhat is expected of them. We dohave problems but those cannotcause a nuisance for long if all partiescooperate and communicate. In fact,we definitely made serious progressin cooperation with other seriousinvestors of the region”. He alsoinsists that every project that has apotential to improve employmentrate should be supported.

“Turkish yards must not be abandoned to their fate”Mr. Kavala foresees harsh days

ahead for Turkish yards, yet believesthey can be overcome if faced

collectively. “Turkish shipyards haveproven themselves and could berevived taking the right steps” heasserts and expresses the importanceof specialised vessel projects. “Thereis no way we can compete with fareastern yards. We have to proveourselves with sophisticated designs.We have to make a difference” hesays. Mr. Kavala emphasizes thatgovernment support in far easterncountries as well as some Europeancountries make an “unjustdifference”. He indicates thatcountries like Poland and Spainquote lower prices compared toTurkish yards and that, Indian yardsare the first to respond to middleeastern demand. He says: “I believecollective deals can be developed onan inter-governmental basis.Shipbuilding industry is an importantsource of revenue and an obviousemployment booster that cannot beabandoned to its own fate. It must besupported for overcoming obstaclesahead.”

RMK Marine Shipyard,subsidiary of the largestTurkish conglomerate KoçHoldings, launched the

second coast guard vessel in the seriesof four. Mr. Rahmi M. Koç, HonoraryChairman to the Fortune 500 listedgiant, also attended the launchingceremony, as the occasion brought theTurkish Armed Forces and privatelyheld yards closer.

The “TCSG Güven”, following the“TCSG Dost” is the second vessel to hitthe water in the four ship project thatis being carried out at RMK Shipyard.Her elder sister TCSG Dost was

launched during June 2010 and iscurrently being fitted out withadvanced systems onboard, waiting tocommence trial voyages shortlyafterwards.

Honorary Chairman Mr. RahmiM. Koç of the Koç Holdings, whichown the shipyard, also attended thelaunching ceremony. In his speech tothe audience comprised of high rankofficials of the Turkish Army as well asmany other important guests, Mr. Koçexpressed the importance of militaryand private industry cooperation andemphasized the positive economicalimpact of such relations.

“However it is imperative that theprivate sector achieve what isexpected from it” he warned, pointingout that “failure to do so willdisappoint the Undersecretariat ofDefense Industry resulting in the ruinof the cooperation.”

Mr. Koç also pointed out to thebooming defense industry wherefigures show a 15 percent growth innumber of companies compared tolast year. "The sector achieved anexport volume of 600 million dollars”he stated, adding that theUndersecretariat looks to surpass 1billion US dollars next year.

According to the yard the first shipis slated for delivery in 2011 while thelatter three will be handed overduring 2012. The next pair in the 325million Euro worth series is to bearthe names “Yaşam” and “Umut”respectively. Based on ItalianCommandante-Siro class, the 88.4meter long ships have a displacementof 1.700 tons, being the largest craftin the Turkish Coast Guard Commandfleet. The quartet, with maximumspeed of 22 knots and range of 3.000nautical miles at a speed of 15 knots,will permit search and rescueoperations at sea state 5 or higher.

14 Turkish Marine PostSHIPBUILDING

Coast Guard welcomes second RMK ship

Turkey aims to lead in specific shipbuilding

Turkish Marine Post 15

Palmali launched its first Armada classtanker m/t Mubariz Ibrahimov, lead shipin the series of ten 7,050 dwt river-seaproduct carriers. Launched from Besiktas

Shipyard in Yalova/Altınova, the ship bears thename of the Azerbaijani National Hero, who wasmartyred in June 2010.

Russian shipping giant Palmali eyes yetanother addition to its river-sea fleet, which willbe delivered from the Turkish shipyard Besiktas.The launching ceremony of m/t MubarizIbrahimov, first tanker in the tally of ten, wasattended by Palmali President Mr. MubarizMansimov, Beşiktaş Group President Mr. İhsanKalkavan, Azerbaijan Consul-General Mr. HasanSultanoğlu and other industry representatives.

Mr. Sultanoğlu expressed his country’sgratitude as the ship was named after AzerbaijaniNational Hero Mubariz Ibrahimov.

According to the shipyard, Palmali ordered 10river-sea type tankers, set for delivery throughout2011 and 2012. Overall, the vessels are estimatedto cost 200 million dollars, while it is said that thecost of Mubariz Ibrahimov stood at 16,5 milliondollars. Palmali also has 5 orders of the same classoutside Turkey, to be built by Krasnoye Sormovoin Russia.

Palmali is known to be a major carrier servingSOCAR of Azerbaijan and LUKOIL of Russia in theBlack Sea and Caspian regions. The Group has alsois said to have secured long-term contracts fromTNK-BP.

Turkish flagged vessels’2010 performance isexpected to give thecountry another push

upward on Paris MoU’s topperforming flag states list.Turkey this year hopes to scorean excess factor of minus 0.49which -in statistical language-means the country keeps up thegood work.

Statistics reveal that in scopeof Paris Memorandum ofUnderstanding on Port StateControl (Paris MoU), 34 Turkishflagged vessels have beenreported detained throughout2010. It is understood thatTurkish Undersecretariat forMaritime Affairs has objected to3 of these detentions andmanaged to override one of

them while for the latter twoappeal procedure is still inprogress. As the organization’s2010 report is expected June2011, Turkish Undersecretariat,based on self calculations,announced that the excess factorfor Turkish flag could bereduced to minus 0.49 from lastyear’s minus 0.46.

Turkish flag had moved upfrom the “grey” list to theprestigious “white” list on theParis Memorandum ofUnderstanding on Port StateControl (Paris MoU)classification in theorganization's 2008 inspectionreport. Turkish Undersecretariatfor Maritime Affairs officials, sayin comment to sustainedperformance that cooperation

between administration andindustry played vitally in theirefforts. According to officials,Turkey's accession talks with theEU also made a positivecontribution to standards andregulations that helped improveTurkey's flag rating.

Turkey had been admitted togrey list during 2006, which wasconsidered a significantachievement back then as thecountry had notoriouslyremained in the “very high risk”category of the black list for atleast 3 years. In this year’sreport, Turkey appears amongBermuda (UK), France and theUnited Kingdom flags, whichrepresent quality flags with aconsistently low detentionrecord and high performance.

Palmali names tanker afterAzerbaijani hero

White listed Turkish flagcontinues surge

SHIPBUILDING

İzmir’s Aliağa district, a center of industry withmanufacturing plants, petrochemical andrefinery facilities and host to a ship demolitionyard, has become the “ship demolition center”

of Europe.The district has been attracting numerous

European firms since last year due to its modernship demolition facilities. A total of 127 ships,mostly from European countries, were demolishedat the shipyard in Aliağa in 2009, while 187 vesselswere disposed of in the region in the first 10 monthsof 2010.

Adem Şimşek, chairman of the Ship Recyclers’Association of Turkey (GEMİSANDER), -who wasalso elected new Chairman of International Ship

Recycling Association (ISRA) on December 13,2010- said the ship demolition facility had beenmodernized recently, business health and safetyconditions at work improved and a total of $10million spent to prevent pollution. Şimşek also saidEuropean maritime firms preferred the Aliağa shipdemolition yard thanks to the Aegean town’senvironment-friendly facilities.

The chairman noted that nearly 1,800 peoplewere employed at the ship demolition yard, adding152,757 tons of ships had been demolished in theregion in 2008, while the figure had risen to297,881 tons in 2009.

“During the first 10 months of 2010, 187 shipsweighing 333,280 tons in total were scrapped inAliaga. Our goal is to reach 425,000 tons by the endof the year. We aim to recycle 98 percent of the shipssent to our region,” he explained.

Şimşek said five to six countries currently dealwith ship demolition; however, none of thesecountries have made progress in terms of Europe’senvironmental standards. “Turkey is the onlycountry among them that acts in accordance withenvironmental regulations and EU standards,” henoted.

Şimşek added that Turkey does not acceptproblematic and dangerous vessels, nuclear waste orships with asbestos for disposal.

Aliağa becomesEurope’s shipdemolition center

Dalsan, originally a dredgingand port constructioncompany is set to complete anew shipyard area project

just outside the Tuzla Region. The areawas assigned to Dalsan in 2007 by thestate for development of a newshipyard area. It is understood that 75percent of the dredging and fillingworks have been completed in additionto 25 percent of the total pierconstruction. Even at this stage, thenew site attract potential buyers,comprised of local as well as foreignparties, which heralds newemployment and businessopportunities for the region.

Mr. Dalsan Chairman, NusretCoşkun tells that two foreign partiesare interested. Among them, GermanDIC Group has reportedly created

Bosphorus Shipyard and plans to setup a repair yard upon 120.000 squaremeters with 350 meter long shore line.The yard is planned to admit panamaxvessels and over, specifically for repairsand serve with two drydocks, says Mr.Coşkun. The Swedish investor whosename is not disclosed is understood toset up a mega yacht shipyard. “We lookto complete at least half of the DICGroup facilities and deliver incommission before 2012” says Mr.Coşkun, adding that the Swedishproject has also started gainingmomentum to get down to businesswithin the year.

Project overlooked since 1995According to Mr. Coşkun, Dalsan’s

shipyard project was sparked in 1995with an inital petition from Turkish

Shipbuilders’ Association who hadenvisaged a congestion in the future.Although the project was approvedand included in the seventh five yeardevelopment plan the same year, no

further steps have been taken until2004, when Dalsan took up the projectand conducted studies. Mr. Coşkuntells that eventually Dalsan’s projectwas taken to Undersecretariat ofMaritime Affairs in 2007 andpermission were granted at the end ofthat year. “We could not advance at thepace we desired, due to the crisis”complains Mr. Coşkun, howeveremphasizing the distance taken duringpast 4 years “has been promising”. Inaddition to the already completed 500meter long pier, construction works ofanother 2,5 kilometer wharf andinfrastructure remains. Depth will be15 meters at the wharves and 10,5meters at the drydocks, explains Mr.Coşkun. The project is currentlyfinanced by the company’s equity andupfront payments of the investors.

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

16 Turkish Marine PostSHIPBUILDING

Nusret Coşkun

Adry cargo ship order lined upfor Bulgarian interests atGisan Shipyard arousestechnical interest as the

ship’s light structure permits lesscostly operation withoutcompromising capacity and speed,shipyard claims.

Gisan Shipyard at Tuzla recentlyundertook a shipbuilding project thatseems to catch much attention of theindustry. 16.500 dwt bulker designedby Delta Marine Engineering forBulgarian interests can attain a topspeed of 13 knots, driven by a mere3.800 kW main engine, an attirbute it

owes to designer as light tonnage ofthe vessel is only 3.200 tons,according to the specifications. As aresult, construction costs and fuelconsumption are drastically reducedmaking the vessel much moreprofitable.

Owner eyes delivery first half Gisan General Manager

Türker Yaltır conveyed technicalinformation on the vessel.According to Mr. Yaltır the vesselwill have a lenght of 152,5 metersa breadth of 22,5 meters and adraught of 7,5 meters. The shipwill be geared with three 45 toncranes and will cost 15 millionUS$. “These characteristics drawshipowners’ interest at a timewhen fuel and steel prices arehigh. There is a significant addedvalue to this ship as it cost less to

build and operate it” Mr. Yaltır saidand added that if the first is receivedwell, additional vessels can beordered. It is understood that thevessel is slated for delivery beforesecond half of the year.

Gisan continues deliveriesGisan Group having two shipyards

in Tuzla and Yalova regions, has thecapacity of building up to 21,000 dwtvessels informed Gisan shareholderand Executive Director Mr. VedatParlar. “Gisan currently builds a fuelcollection vessel for Turkish CoastalSafety Administration and a 21,000dwt chemical tanker on account ofAltınbaş Holding at Yalova in additionto 2,600 dwt chemical tanker and a16,000 dwt bulker at Tuzla” he said.Shipyard, having booked only twonew orders since the crisis broke,plans to focus more on repairs whilecompleting previous orders.

Organized by NTSR, 11thInternatinal MaritimeExhibition looks set to fill allbooths as 90 percent of

reservations have been reportedbooked. The fair this year is expectedto attract 600 exhibitors from 32countries, while estimated attendancesurpasses 11 thousand people.

EuroportIstanbulInternationalMaritimeExhibition invitesinternationalmaritime players to Istanbul for the11th time. The fair is organized byNTSR in an exclusive cooperationwith the Turkish Chamber and will beheld at between 23-26 March 2011 atIstanbul Expo Centre. The premisesare also at proximity to Tuzla area, achoice which will surely increase thenumber of visitors from Turkey’slocus of shipbuilding.

Held almost precisely two yearsago between 25-28 March 2009, the10th Europort Istanbul attracted 217exhibitors representing 610 brandsfrom 34 countries and 7,869 visitorsfrom 48 countries. Netherlands,United Kingdom, Spain, Germanyand Greece topped visitors list,followed by visitors from Bulgaria,France, Japan, Belgium, Italy andScandinavian countries. Mr. Jos vander Vegt, CEO of Ahoy Rotterdam

said in a press release that “what oncestarted as ‘Exposhipping’, a mainlynational Turkish exhibition, has nowdeveloped into a truly internationalmaritime trade fair in Turkey”. Mr.van der Vegt seems to expect furtherincrease in number of attendantscompared to previous fair as he statedthat 10th fair had surpassed the 9th

one by 40 percent.His Turkishcounterpart in theorganisation, NTSRGeneral ManagerMr. Serkan

Tiglioglu, on the other hand,emphasized that Europort Istanbuloffers “a gateway to new marketopportunities for the participatingcompanies”.

Europort and Mare Forum join forcesMeanwhile, it has been

announced that this year the twomaritime event organisers EuroportIstanbul and Mare Forum IstanbulMare are to join forces and merge thetwo events into one major fair takingplace from 22 to 26 March 2011.Mare Forum Istanbul will reportedlybe held one day prior to EuroportIstanbul, allowing exhibitors andvisitors of Europort to also attend theconference. Likewise, Mare Forumparticipants will have the opportunityto visit the exhibition.

Turkish Marine Post 17SHIPBUILDING

Cost-effective bulker attracts owners

Europort Istanbulalmost booked out

Private maritime training andcertification center Ekol looksto be awarded a contract byThome Ship Management of

Singapore, who paid a visit to theinstitution premises last month. Fareastern company is understood to seek anearby training center for EasternEuropean recruits instead of Philippines.

Istanbul based Ekol Seamanship &Training Center, educates officers andseamen to be employed onboardinternationally operated ships since1993. Having recently invested nearlyhalf a million Turkish Lira (325,000 USdollars) the institution now teaches 375students and 120 course attendants atnew facilities equipped with advancedtraining and simulation systems.Principal Yusuf Sertkaya asserts that thefacilities “perhaps house Turkey’s mostadvances ship safety training center”.

Thome to set training outpost Meanwhile Ekol is at the onset of

signing a cooperation contract withSingapore’s Thome Ship Managementreveals Deputy Principal Capt. CelilGüven. “Thome Ship Managements paida visit during December 2010 and werevery impressed with the standards we

have achieved and proficiency of thestaff” he says. According to Capt. Güventhe sides are looking to ink a contractwhereby Thome will train Europe,Balkan and FSU recruits at Ekol facilitiesin Istanbul rather than Philippines. Thescope of trainings will includeorientation to Thomes in-house systemsas well as further technical education.

ECDIS focus adds valueProviding training services to

foreign officers and crew does seem tobe a new challenge for Ekol as Capt.Güven emphasizes that the institutionprovides complementary training for

foreign companies, most significant ofthem being ECDIS courses. Ekol, since1998, educates deck and engine roomofficers to be employed onboard vesselof up to 3,000 gross tons and with 750to 3,000 kW installed power. Thegraduate officers can later on continueto attend courses provided for licenseupgrades, Capt. Güven indicates addingthat Ekol also trains other companies’ ororganizations’ crew on demand citingCoastal Safety Administration and ArkasHolding personnel as references. Capt.Celil Güven mentioned about Ekol’ssubsidiary Akademi, which isunderstood to train petty officers.

18 Turkish Marine PostEDUCATION

Ekol tipped forSingaporeantraining contract

İİstanbul Deniz Otobüsleri A.Ş.(Istanbul Fast Ferries - IDO),municipality owned ferry operatoris up for tender just after posting

126 million Turkish Lira (81,3 milliondollars) profits ultimo 2010. Ahead ofthe bidding period, rumors suggestthat a strenuous race is expected totake place among domestic and foreignlarge concerns.

Put out to tender effective as fromJanuary 2011, İstanbul DenizOtobüsleri A.Ş. (IDO) attracts domesticconglomerates, foreign funds andstrategic buyers alike. Cited localinterest include Koç, Sabancı andBoydak groups as the ferry operator’snew owner is expected to bedetermined before the end of firstquarter, following the bidding periodscheduled to start 31 January.

IDO General Manager Mr. AhmetPaksoy (PhD), explained in astatement to Turkish Marine Post thatthe procedures began during secondhalf of 2010 following IstanbulMetropolitan Municipal Board’sresolution. In the following quarter,Mr. Paksoy conveyed, management oflines serving Prince Islands, GoldenHorn, Bosphorus and all Water Taxilines were turned over to anothermunicipal establishment. Named “CityLines” in homage to 160 year oldconventional ferry operator that wascreated during Ottoman Era for publicwater transportation, the newestablishment now manages 34passenger ferries and 49 terminals,formerly run under IDO, he told.

Growth brings international acclaim22 year old IDO has attained

remarkable success in the past 6 years,

as the company rose from a small localferry operator in 2005 to “World’sLargest Commuter Ferry Operator” in2009. Company’s growth was fuelledby adoption of ISM Code in fleetoperations, implementing ISOmanagement standards and EFQMExcellence Model as well as the mergerwith conventional ferry lines and new-building fleet composed of 7 differenttype of ships to be employed inintercity services. Vigorous investment

agenda and increased public relationsefforts including customer loyaltysurveys, promotions and culturalevents brought Mr. PaksoyINTERFERRY Presidency for the year2009. Statistics also displayapproximately ten-fold performanceimprovement in 6 years as companyreportedly transported over 100million passengers onboard 52 vesselbetween 36 terminals compared to 6year 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 andmain capital of the company”. He citedEgypt, Oman, Dubai, Syria andThailand among countries thatapproached IDO for know-howtransfer involving water boundpassenger transport, and said “We arenow in a position to provideconsultancy or direct projectmanagement services to establishpassenger lines upon any givenwaterway across the world”. Mr.Paksoy pointed out to transportopportunities surrounding MarmaraSea Basin and commented “IDO’sfuture vision can only be as broad asthe horizons of those who acquire it”.

Turkish Marine Post 19NEWS

IDO with figures

End 2010 Financial Performance�

� Projected End 2011 Financial Performance

Revenues

million TL (252 million dollars)

390 Profit

million TL (81,3 million dollars)

126EBITDA

million TL (54,8 million dollars)

85

Revenues

million TL (238,7 million dollars)

370Profit

million TL (46,5 million dollars)

72EBITDA

million TL (77,4 million dollars)

120

IDO currently employs 52 vessels on 18 lines running across 36 terminals. The fleetis 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 CityLines Administration in September 2010 and will remain in public service.

Ahmet Paksoy

Giants to duel over ferry tender

Turkish Marine Post, in this firstissue, is pleased to feature Mr.Mustafa Gürsoy, Gürdesan’sChairman, on these “Marine

Equipment” pages. Mr. Gürsoy, who atthe same time is a board member of

ODEK (Oruç Reis MaritimeSociety), is the leader and inspiringforce behind capable Gürdesancrew. Gürdesan was established in1982 with onboard equipmentrepairs as mainstay. Howeverbusiness developed beyond repairsand in time Gürdesan shifted tomanufacturing equipment likehatch covers, windlasses andderricks, he tells. According to Mr.Gürsoy, currently the companycontinues to produce a broad rangeof marine equipment includingdeck machinery, rudder systems,hatch covers, cargo cranes and life-saving equipment in a 2 hectarefactory. “On average, foreign originparts constitute only 20 percent ofany given Gürdesan product. Idaresay, after 30 years into theindustry, we have accumulated aremarkable component know-howwhich enables us to drag our pricesbelow as much as 30 percentcompared to the Europeanproducts” he says pointing out tocompany’s in-house manufacturingcapabilities and agressive pricingstrategy.

Tuzla trends shape production policy According to Mr. Gürsoy, prior

to 2002 only 20 percent ofGürdesan’s turnover had stemmedfrom production whereas the majorpart had been coming from repairs.During the newbuilding boomperiod, the ratios have switchedplaces as production then rapidlyrose to take up 80 percent of allcompany activities. “Howevernowadays we are using 50 percentof overall capacity, evenly sharedbetween repairs and production” he

says. The crisis and the following waveof cancellations seem to have taken theirtoll on Gürdesan too, as Mr. Gürsoyexplains “Over 100 projects that we hadbeen contracted for were cancelledduring crisis. Although we were long oninventory to fulfill contracts, we did notopt to impose sanctions, as we thinkeverybody is in the same boat”.

Owners “follow quality”Mentioning about Gürdesan’s

growth plans, Mr. Gürsoy says thattheir facilites will soon be extended tocover 4 hectares, doubling the existingLoyout. He emphasized the importanceof Far Eastern and Russian exports forGürdesan where apparently a strongdemand is developing. “Our exportactivity is actually a result of Tuzla’sperformance in selling ships abroad.One Tuzla built ship owner later oncalled us to order equipment for hisvessels being built in Taiwan. This isnot uncommon to us anymore asforeign owners of Turkish built vesselscan actually see Gürdesan qualityonboard and compare it to therelatively expensive European orJapanese equipment. We see ourselvesin the same league with our globalcompetitors” he says.

Propulsion plant underwayGürdesan is also known to take

part in Turkish Naval projects, as thecompany is reportedly commissionedto manufacture deck machinerypackages for 10 naval ships. Furthernews into the company is thatpropulsion will become a serious newfield for Gürdesan as Mr. Gürsoyspeaks as follows: “We are looking tostart propulsion systems productionjointly with a UK based partner. Bothfixed pitch and controllable pitchpropellers of up to 6 meter in diameterare going to be produced. Althoughour partner focusses on exportoriented production, we hope to beable to meet some domestic demand aswell as producing for naval projects”

Gürdesanembarks onpropellerproduction Deck machinery and marine equipment producerGürdesan continues to expand both in terms ofmarket share and product range. Company lastweek told Turkish Marine Post about its plans tocommence propulsion systems production, incooperation with a UK based partner.

20 Turkish Marine PostMARINE EQUIPMENT

Mustafa Gürsoy

Turkish Marine Post 21

Ensar Engineering recentlyfound time to focus onproduct developmentwhich has long been

delayed due to massive work loadprior to crisis, admits generalmanager Mr. Özkan Göksal. “Weplan to switch to automatedmanufacturing for some of ourproducts, but we can invest innecessary machinery if the marketpicks up” he says adding that Ensaris now acting to improve qualitybased on client feedback.

Meanwhile, the companyrecently announced “multipurposecover” as a new additon to theirproduct line following succesful

completion of necessary tests.According to Mr. Göksal, theproduct permits flexible productionsizes ranging from 450x600 mm to500x1.600 mm. With two stainlesshinges and three-point bolts, thecover comes with decorativefinishes such as wood, textiles, otherregular patterns and rudder wheelengraved handles. Mr. Göksalindicates that the product line waslauncehd in order to meet costumerdemands dating far back. “Thiscover is infact a very simple productthat everybody can manufacture.However, sea environment andonboard usage calls for additionalrequirements or costumer demands,

which make a special designnecessary” he tells. Intended usageareas for the cover includes, spacesleft behind contoured ship surfaces,inspectable spaces such aselectricity, piping or ventilationsshafts over ceiling or wall panelsand other inspection points ofcontrol units. Mr. Göksalemphasizes the importance of firesafety as even this “simple” productis made of fire proof materials, andcombines aestheteics andfunctionality for wherever the needmight be. Ensar plans to launchseveral other products in the comingmonths as safety tests are dulypassed.

Ensar endures crisis with R&DFireproof panels, cabins and doors manufacturer Ensar lost one third of its business volume created by yards’ newbuilding projects as crisisswept orderbooks. Meanwhile, the company clinged tightly to R&D thatapparently bears fruits for the future.

MARINE EQUIPMENT

Iwas watching a television showfew days back and the presenterof the show said that they decidednot to take part in the financial

crisis. I wish we shipping people coulddo the same however we are not inshow business. Turkey’s economy hasnot been affected as much as EUeconomies but still the stagnantneighbours are a big worry here.

It has been almost three years sinceshipping markets taken toll of ongoingfinancial crisis. Recently many peopleturn to know everything about financialcrisis and no author want stay in an area where so manyexperts exist therefore we will not spend much here too.

Some may argue that the current status of the marketmay even be the way it should be. My expectations are aboutworld shipping to partly stay as it is for at least few moreyears to come because shipping is an industry where financerelated parameters have taken over the parameters ofinternational trade volume. Total increase in worlds overalltrade volume was up in 2010. But how much of it felt byshipping companies? Has someone taken jam out of mydoughnut? Many argue that bosses of finance crisis effectedwestern economies want to turn their consumers’ attention tolocal produce however this may in the long run hit theshipping market badly. But in my view current crisis will endwhen financial headquarters’ decide what to do with themoneys they command. What I understand from the currentpicture is USA led liberalist world economy is no longer agood working machine. Neither Friedman’s monetary ideasnor Keynes’s General Theory working nowadays. Manyordinary people like myself asking the same question. Is thesystem changing here? I think yes. Decades of monotonouscycles coming to an end therefore finance headquarters needto make a decision to commit themselves to a part of theworld or to tell us the new magic. Last few decades financeenjoyed resting peacefully in north Europe’s and northAmericas arms however some already decided to takeadvantage of taking early part in supporting fast developingeconomies like China and India however many of us can stillnot think of a finance and trade world without USA simplybalancing everything for us. Cut the long story short it maytake finance world few more years to decide the newfinancial system therefore current status there to stay with usfor some more time.

I think in current climate and periods we should to sitback and think better and stronger structures. Many deferredplanning and alternative-marketing strategies can easily beour main subjects during these tough times. Before 2008 forfew years we were spoiled with constant positive

expectations and new generation including myselfdo not know how to handle the rainy days.

Turkey’s shipping decided to have open doorthis year. Please welcome to Turkey to see thevibrant, productive and positive attitude ofshipping.

First I have to say that what I closely witnessedlast two and half years in Istanbul is a refreshmentof the industry. To my astonishment the fleetexpansion has taken place so quickly and rapidly.Many of the investors either first time invested toshipping or some of the owners have takenadvantage of relatively cheaper second handpurchase prices. Although the freight markets are

not so attractive recently the many owners seem to hold on.There is more good news I can phrase from Turkey. Such asthe establishment of new maritime entrepreneurs’ club calledODEK who are making this journal and many more socialactivities among shipping people possible and more andmore international attention towards whole Turkey’seconomy and Turkish shipping industry. Turkey’s tightbanking rules, banks have not been able to make big enoughmistakes to go bust. On the contrary they announced recordprofits last year. Sooner or later they will have to sell themoney stuck in their safes. As a result we have seen moreinvestor friendly banking profile here in turkey. Thereforehave already started to see some recovery from the financialfront here. Turkey’s economy is also expanding at a healthylevel and as a result shipping industry also expected toexpand at a parallel level. Despite Europe still showing someuncertainties we are very much used to regularly hear localnews about either a foreign companies investment in Turkeyor a Turkish company’s investment abroad to join forces withtheir European or oriental counterparts.

Many of the readers would well know that when it comesto shipping and trade customs east of Suez and west of Suezare almost two different worlds. There are many local traderoutes west of Suez and some ships never sail other thannorth Atlantic and Mediterranean. Many of these ships areowned and operated by European companies on the otherhand shipyards in Europe are relatively expensive and notgetting any cheaper. But on the other hand there is a eagershipbuilding and ship repair industry waiting for Europeanshipping industry to take more responsibility about placingorders, sending their vessels for repair, investing and helpkeeping Turkish shipbuilding and ship repair industry livelyfor their own future benefits.

There are two shipping industry fairs to come this year inIstanbul. You may use one of these as an excuse to take a fewhours plane ride to Istanbul. Come, meet us and try tounderstand Turkish shipping industry. Get into dialogue withus. You never know. You may still be surprised.

Open door policy

22 Turkish Marine PostINSIGHT

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 andAggregate Capacity

69 / 3.5million dwt

Number of Yards UnderConstruction and Capacity

57 / 3,8million dwt

Number of Floating Docks atTurkish Yards

18 Number of Drydocks, Active and

Under Construction

9 / 22Total Number of Active Ports

and Piers

176

Captain Mehmet Altun

Turkey withfigures

Turkish Bunker Association (TBA) is celebrating its 10th anniversarywith 5th International Istanbul Bunker Conference to be held on 1-3 june2011 at Four Seasons Hotel on Bosphorus.

‘Our succesfull past 10 years now is being honoured by 5thconference in 2011 which includes important speakers such as CEO oflargest 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 verysuccesfull in their field. Not only Mr Yavuz Kalkavan, CEO of BesiktasGroup, Prof Oral Erdogan and Alkin Kalkavan of TURKON, we alsointroduce young well-known Turks working in our industry abroad in UKand Singapore experts on credits and financial issues who all will begiving valuable speeches for our guests.’ saying Ms Yesim Muhtaroglu,Chairman of TBA.

5th Istanbul Bunker Conference on June

Turkish Marine Post 23

Established less than 7 monthsago with the vision to assembleTurkish shipping businessmenand create added value via

solidarity, ODEK (Oruç Reis DenizcilerKulübü – Oruç Reis Maritime Society)has reached more than 65 members andapparently set a goal of joint ownershipas first step. Among thenewly establihedsociety’s aims are toguide members throughinternational investmentenvironment and createa pool for joint efforts.ODEK Secretary GeneralMr. Vedat Parlar statesthe organisation hasbeen in demand overtheir anticipations andbelieves that it will soon reach highnumbers in members. “Turkish shippingsociety has several other NGO’s andassociations that encompass certainvocational groups, however somebusinessmen and companies desired tovoice their own concerns as a seperategroup” explains Mr. Parlar. “We aim tobring together those who wish to makea move jointlyand take other NGO’s likeTurkish Industry and BusinessAssociation (TUSIAD), IndependentIndustrialists and Businessmen'sAssociation (MUSIAD) andConfederation of Businessmen andIndustrialists of Turkey (TUSKON) asmodel to apply for shipping” he says.

Mr. Parlar furthermore tells that theSociety unites businessmen from diverseindustrial fields and says that they “seekways to do new things for the industry”.It is understood that the Society initiallyseeks to have a say in maritime realted

legislation as they intend toestablish direct contact with countrylaw makers whilst sustainingenvironment of trust among itsmember business people. “It isimpossible for individuals to revealnew opportunies abroad, all bythemselves. We intend to send joint

delegations andinvestigatecooperationpossibilities withinsurrounding countries”he says. According toMr. Parlar, CentralAsian, Middle Easternand African countries“could holdopportunities involvingTurkish shipyards”.

Large tonnage “a must for coaster owners”The Society is also keen to

contribute to the long debatedsolution for “olding Turkish coastalfleet” as Mr. Parlar addresses thereason for slow growth as “highcosts due to incooperativeoperations”. He indicates that theirintention is to encourage owners tojoin their efforts and says “Wethink coastal vessel owners mustconsider switching to largertonnages, we therefore aim todevelop cooperation amongowners and other enterprises”. Mr.Parlar reveals their plans to createa pool with member contributionsand acquire a handysize vessel. “Ifall goes as planned, we shallconsider adding new tonnage tothe pool” he says.

ODEK, namely Oruc Reis Maritime Society, organizes meetings encouraging young shipping executives to become mor active within the industry.

ODEK

ODEK aims new generations

Vedat Parlar