''Turkish Transporters Did Not Let Their Exporters Down''

Nuray Pekcan: Firstly, how is your business Mr. Erhan?

Erhan Gündüz: Fortunately, we are still able to start our engines in such troublesome times of Turkey and the world. Our businesses and our vehicles are operational. We continue to manage our businesses. Ever since the foundation of TENNAK A.Ş., we've always been conducting transportation on the European route. Germany and Belgium forms most of that route. Of course, that doesn't necessarily mean that we are limited by Europe. We have the capacity to reach any region accessible by road. However, we've mostly been working in Europe for the last 15 years. We serve respected organizations in our country in the automotive and spare part industries. Each year, we conduct nearly 1500 trailers worth of transportation operations.  We are an Ankara-based organization. Throughout many years, we've conducted the transportation operations of various defence industry companies in Ankara from the transportation of their first workbenches to present day.

Nuray Pekcan: How did the economic fluctuations of the recent months affect you?

Erhan Gündüz: As you stated, there have been some fluctuations in the currency since August. Our difficulties in procuring exporting vehicles has been the biggest problem it has caused in our sector. When you're transporting, you have a round-trip cost of about 4500 to 5000 Euros. You have to divide that cost to your exporter and your importers at certain rates. However, the decreasing currency investments, lack of new investments and cessation of commercial exports have significantly reduced the capacity. For example, sometimes we had to return 20 to 25 vehicles in Europe without any cargo and sometimes we had to return them at very low transportation freight charges. We did that only to continue to serve exporters that we collaborate.

"Being Able to Start Our Engines Is Sufficient Enough"

Nuray Pekcan: Well, didn't it affect your profitability when you had to return your vehicles empty or at very low prices? After all, you are talking about a cost of 4500 to 5000 Euros.

Erhan Gündüz: I can say that, especially on the European route, Turkish Transportation Sector has been operating for the last 2-3 years just to keep the system afloat. I can say that these days transportation is only limited to saying 'being able to start our engines is sufficient enough'. Because we have continuous responsibilities, working capacity and employees. Sometimes you don't have the luxury to stop, whatever the circumstances. Don't get me wrong; this isn't unique for the last 2-3 years. This sector has been operating at cost all along. Because the wheels have to keep turning.

Nuray Pekcan: So, do you pay out of your pocket to continue the sector and serve your customers?

Erhan Gündüz: Yes, we did pay and we still are paying.  Because we can't let down companies we've been working for tens of years. Otherwise, one morning we have to wake up and tell these companies: 'I won't go to Europe unless you give me 4500-5000 Euros.' Of course, we wouldn't consider such a thing ethical. Well if you ask me what happened: well, sometimes we were supported by our exporters with very modest numbers and sometimes, we never even received any support. Admittedly, exporters don't work with very large margins. Today, the global competition is based on Cents. In order to survive under the global competitive conditions, our exporters have to act at very strict and limited amounts. Under such conditions, it is impossible for us to increase our freight costs to 4500-5000 Euros. In case of such a thing, our exporters wouldn't make any profit. In that sense, I can say that Turkish transporters have done their part to maintain the sector. They never let any of their exporters down.

Nuray Pekcan: In today's business world, conditions may change at any given moment. Of course, in such times, it becomes harder to make any future projections. Globally, what are the main problems of the Turkish Transportation sector?

Erhan Gündüz: As the Turkish Transportation sector, our main issues with the global competition is the issue of 'Non-Tariff Barriers'. Especially for the last 2-3 months, we've had a unique visa problem in Ankara that we couldn't solve. Our Ministry of Foreign Affairs have been diligently working to solve this issue. However, currently the issue still persists. Ankara-based and South-eastern transporters may have trip issues in the upcoming months.

Nuray Pekcan: Why do the Ankara-based and South-eastern transporters have this issue?

Erhan Gündüz: Because these days, there is an issue resulting from the local practice of the relevant embassy in Ankara. They request additional information and documents that are impossible to accept and unreal to even obtain. That doesn't match up with the realities of the sector. In that sense, there is a major issue. We don't have a clear understanding of why the embassy demands these information and documents. We have to sit down and discuss the issue. Of course, we respect their right and laws as well as their sensitivities for their national securities. However, like I said, they demand documents that aren't possible to obtain for us.

Nuray Pekcan: So, when will you sit down together?

Erhan Gündüz: Currently both our Ministry of Foreign Affairs and our sector have requested appointments. We still haven't received a response.

Nuray Pekcan: Based on how foreign companies structure in Turkey with a sense of globalization, what would you say about its reflection onto the transportation sector?

Erhan Gündüz: Turkish transporters have seriously struggled since especially 1980s. In the end, they have regained their dominance in the market share and especially in its organization. In the past, transportation organizers were mostly foreign companies. Turkish transporters only took part in the logistics part of the business. These have been overcome through the process. However, in the future, the current economic crisis may bring the sector to a real danger: Local companies may start thinking: "I wish there was a well-paying foreign company that I could just sell and be done with this business." Thus, I can say that the sector won't be going towards a good direction in long term.