''Things Look Very Bleak But There Is Still Hope''

He is a young and successful politician and businessman who has a different vision. We thought that our trip would not have been complete without visiting Mr. Ökten who has conducted important activities in the transportation sector and decided to visit him.

 Mr. Mahmut, can we begin by learning a bit about you?

As AS YAPI Conglomerate, we've been operating in the logistics, production and exports segments for nearly 20 years. Our operations also include businesses like construction chemicals, concrete production facilities and gas stations. Even though being located right near the Habur Border Gate provides an economic edge, we have been overwhelmed by the issues that have continued in the region for nearly 7 years.

'Textile City' Project for Silopi

In addition to being a businessman, you are also a politician side. You were a representative candidate for the Justice and Development Party in the previous term. What is your vision of the unity and solidarity of the people of this region?

 I was a representative candidate from Justice and Development Party for the Şırnak province in the June 24 elections. Our region has majorly suffered from the recent trench events. Our people are truly innocent and truly valuable. I think that they did not deserve any of these. Our government is currently making major investments into our region. Many houses have been destroyed, infrastructure has been demolished; however, our government has constructed a lot of housing through TOKİ (Housing Development Administration of Turkey). There have been serious changes in Cizre and Silopi. We want our citizens to protect this change together. I would like to say an important thing about the region. We have a two-year project for Silopi Organized Industrial Zone. We're at the land allocation phase. We also have a textile city project. Şırnak Governor's Office has been highly sensitive on this project and they have made a lot of contribution. If we can realise this project, it will offer employment for nearly 5 thousand people. This will be an initiative that will change the economic fate of the region.

"We Have Brands That Are Among the Top 3 In Iraq"

When is this project scheduled to complete?

Following our land allocation, there will be a very fast circulation as the land will already belong to the Treasury. Currently, many companies are waiting for the land allocation to begin their investments. Each year, we make 10-12 billion dollars’ worth of exports from our Habur border. We have a very large gate that opens to the Middle East. In those times, I resigned from my position as the Vice Chairman of Şırnak Chamber of Industry and Commerce and became a representative candidate. Nowadays, I keep thinking, as the people of the region, what is our role in all of this. Load comes from İstanbul and exported through here. So, why shouldn't we minimize these logistics values from the bottom of this and send them right from here? Today, our people have realised that. I've been manufacturing construction chemicals for nearly 10 years and we even have brands that are among the top 3 in Iraq. That is very important for us. Currently, we have external capital and many businessmen who can mobilise our own dynamics here to establish factories. Hopefully, we will soon get a reply and begin serving our people.

Does the government provide any incentives for things like loans, land allocations etc.?

Şırnak is Ministry of Economy's 6th enterprise zone. Accordingly, there are incentives for land allocations as well as insurance and interest supports. You can take advantage of these incentives if you can get the incentive documents. There are very significant incentives. The important thing is to systematically implement these incentives.  For example; there is an agency called DİKA, Dicle Kalkınma Ajansı (Tigris Development Agency) that supports Mardin, Şırnak, Siirt and Batman provinces. We also have Eastern Anatolia Exporters Union.

 "Fuel Transportation Between İskenderun, Erbil and Kirkuk..."

In the past, terror-related events used to be more frequent in the country. Nowadays, we don't have any serious issues; however, there are still problems that occur inside the neighbouring countries or problems that we have with the neighbouring countries. Under these circumstances, how would you estimate the transportation potential of the region through exports, both in terms of exporters and economy?

Logistics is a major industry. We're talking about a sector that may extend from vehicle body manufacturers to tire manufacturers, repair shops to fuel and to everything else. I'm thinking: 'What can we do to mobilise such strength?' For example; it could be fuel transportation between İskenderun, Erbil and Kirkuk When we can realise that, believe me, it would create a lot of movement to help both the sector and new logistics fleets to grow. However, the regional instability causes an unstable growth for our logistics companies. Sometimes you can see 3 to 5 months of spring and sometimes you can see 6 months of recession. Inevitably, our businessmen begin having problems with their payments and they can't even find buyers at half the price when they try to resell their vehicles. Unfortunately, we have the handicap of neighbouring the Middle East. It affects us a lot. The logistics operators need to be more aware.

"We Have to Criticise Ourselves!"

What sort of awareness are you talking about?

Well, I can say one thing; people have purchased excessive number of vehicles. That was wrong. We have to criticise ourselves a bit. Some things happen because our businessmen can't predict the future. For example; fuel transportation has been great for the last 6 months; rents are also at great levels. So, we direct almost all our investment to those areas. I believe that we should be more cautious. We shouldn't act impulsively.

Is this true for the regional logistics companies too?

Things are looking very bleak right now but there is still hope. We're seeing that relations are going good with the Baghdad government. We've been following it on both the social and mass media. That makes us happy. I'm sure that these good relationships will have a positive outcome in the future. They've implemented an additional customs fee between Baghdad and Erbil. We expect that it will be revoked soon. As soon as that is revoked, demand for our exports will increase even more. We will be able to sell products at much more affordable prices. Because the price of the products has increased when they travelled from Baghdad to Basra. Our path will be cleared as soon as that fee disappears. We have more hope for the upcoming days.

3 factories have been inaugurated between Sülaymaniyah and Kirkuk. As soon as those are inaugurated, their taxes for our cement have been increased on the ground of protecting their goods. Of course, our exports began to decrease; however, our food exports still continue.

Is there an increasing trend there for food?

There has always been a sympathy and demand for Turkish products. We need to continue that in a positive manner. Our country does not only export to this region. If we look at our export figures, our country exports to various locations around the world. Previously, our flour exports were very high. Currently, governments apply certain measures to protect the balance of their internal markets. I think that we should wait and see what will happen and take steps accordingly.

Do you believe that logistics companies will display a parallel growth with exports in the upcoming term?

Absolutely. However, as logistics operators, we have to pull ourselves together. As the supply levels are not at the expected numbers and results, transportation fees automatically drop. It is a matter of supply and demand. Prices go down in the market as there is a lot of vehicles. We had colleagues who fell down hard, especially due to the state of the US Dollar currency. If exports increase, naturally the demand for logistics will also increase and that would improve the prices. Our people may reach really good levels in their own sectors as well. However, I believe that we should be more cautious from now on.

Most of the global brands have already established structures in Turkey and they have long-term plans. They are taking advantage of the Turkish market so well. Perhaps are we scared on our own? Or are they braver than us?

These companies have corporate structures. We haven't even achieved such an identity yet, let alone make such projections. The American embargo has currently been implemented in Iran. The Iranian market has been closed. Syria is over. Iraq is still unclear. Yes, Turkey is a bridge. I can see that really well when we go to other countries. As these foreign companies are much more advanced than us in terms of corporate management and production capacities, they can take that much further risks than us.

Can you estimate that the regional potential will improve even further in the future?

We may have issues in the short term; however, this region certainly has a very bright future ahead. I have no doubt about it; however, there isn't any sustainability. For example; Baghdad government disagrees with the Erbil government and we face the risk of losing all our customers. All our sector begins to receive damage. Now, I think that all of these will improve in the future. When Syria is open in the future, it will be a new gateway for both our exports and our logistics sector. What are we going to use to transport our products? Our vehicles. 3 to 4 thousand vehicles enter and exit through the Habur border gate in Silopi each day.

We all need to protect this country together. We don't have any other country. And we love both our country and our people. Hopefully production will increase soon and our logistics operators will carry these products. We hope that we will manufacture high value-added products and offer them to the global market.