Union of Chambers and Commodity Exchanges of Turkey

As per the protocol signed at the TOBB Union Center, Hakkari-Yüksekova’s Esendere Customs Gate to Iran, Van’s Kapıköy Customs Gate to Iran, Iğdır’s Dilucu Customs Gate to Nakhcevan, Ardahan’s Çıldır-Aktaş Customs Gate to Georgia and the largest Internal Customs Office in Turkey located in Halkalı, İstanbul will be modernized in accordance with the latest technologies by TOBB on a build-operate-transfer model.

In his speech at the signature ceremony, TOBB President Hisarcıklıoğlu emphasized that Turkey has risen up and achieved success after success during the last 10 years thanks to the dynamism of the private sector. Hisarcıklıoğlu said, “In 2011, while our neighbor struggled with the European economic crisis, Turkey grew by 8.5%, one of the two fastest growing countries in the world. Along with the increase in production, our exports increased rapidly as well. In 2011 we broke our record by exporting 135 billion Dollars.”

Pointing out that as the economy grows, so do their goals, Hisarcıklıoğlu spoke: “Our point of view has changed. Today, we talk about becoming one of the ten largest economies in the world and achieving an exports volume of 500 billion Dollars. These goals don’t seem all that far away to us anymore. I can easily say as someone who has traveled to every province of Turkey that these goals are engraved on the minds of our people and businessmen alike.

On the other hand, in addition to our plan of making Turkey an industrial giant we are talking about becoming a transit terminal and logistics center. We are planning to revitalize the ancient Silk Road. We are seeking to turn our strategic position between Asia and Europe into commercial gain.”

- Modernization of the customs gates is of great importance

Stating that they put great importance on fast and safe customs passages, Hisarcıklıoğlu said, “Especially when you consider that 40% of all our trade is done via land, the modernization of our customs gates becomes even more important. At the same time, this will be a great source of income for Turkey which has the 2nd largest land transportation fleet in the world. This is the vision with which we approach projects for the modernization of customs gates as TOBB.”

- Customs gates are the best example of private-public sector cooperation

Touching on the fact that customs gate are the best example of private and public sector cooperation, Hisarcıklıoğlu said, “These have been role models in showing what can be achieved with the cooperation of private and public sectors. Thanks to this cooperation, Customs and Tourism Enterprises (GTİ) Co Inc, founded in 2005 with the partnership of TOBB and 136 chambers and exchanges, has completed the modernization of the Habur, Cilvegözü, Kapıkule, Sarp and Hamzabeyli customs gates. The opening of the Nusaybin customs gate has been delayed due to complications on the Syrian end although the construction is complete.”

- The government profited without having to spend anything

Stating that while all this was being done, not a single kurus of burden was put on the public budget, Hisarcıklıoğlu pointed out that, quite the opposite, a significant amount of resources have been attained for it: “For all of these projects, GTİ invested 286 million TL over 5 years and paid a total of 150 million TL in taxes. The modernized land customs gates have halved the wait time, quadrupling their vehicle and passenger capacities.
The contribution of the reduced costs along with the wait time to the Turkish private sector is 450 million TL in just one year. Our investments have reflected unto the private sector as profit.”

- An extraordinary opportunity to prosper for Turkey’s eastern provinces

Stating that the work underway is an important step towards the revitalization of the historical Silk Road, Hisarcıklıoğlu said that it also presents Turkey’s eastern provinces with a great opportunity to prosper and went on, “This is one of the main reasons investors do not venture to the eastern provinces of Turkey, their distance from large export nodes. With these investments, we will connect the eastern border provinces to the high density cities of neighboring countries, ensuring that these provinces become viable for investment.”

- Information on the modernized gates

Hisarcıklıoğlu explained the opportunities the project will bring.

“The Esendere Customs Gate is 50 km from the Urumiye city of Iran with a population of 700,000, 90% of it Azeri Turks. The fast access of Hakkari to this market is an important chance for the prosperity of the region.

The Kapıköy Customs Gate is 50 km from the Hoy city of Iran and only 250 km to Tabriz. With its population of 1.4 million, Tabriz is the second most prosperous city in Iran. When the modernization of this gate is complete Van, Erciş and Tatvan will gain fast access to a market of 2 million population.

The Dilucu Customs Gate opening up to Nakhcevan will connect Iğdır and Doğubayazıt to our brothers in Nakhcevan.

The Çıldır-Aktaş Customs Gate will connect Ardaha and Kars to Georiga’s developing southern region. This will be a chance for our traders and industrialists to meet with Ahıska Turks in southern Georgia as well as giving them access to the Azerbaijani market, only 230 km away.

These four gates will give all of our eastern provinces to trade with our three eastern neighbors – Iran, Georgia and Nakhcevan. This is an important step towards the development of our eastern provinces as well as making investments in these provinces attractive to domestic and foreign investor.”

- The face of the East will change

Stating that they will contribute to the state of employment in the region and to trade by investing 120 million TL in the modernization of these gates in the eastern provinces, Hisarcıklıoğlu said that these projects will change the face of the region.

“Commerce begets prosperity and prosperity begets peace,” said Hisarcıklıoğlu and thanked the Customs and Commerce Minister Hayati Yazıcı for his contributions.

- Halkalı Customs Office moving to Çatalca

With this protocol, the largest Land Customs Office in Turkey with 700 TIRs passing through daily and 40 billion Dollars’ worth of goods being processed yearly, the Halkalı Customs Office will be rebuilt in Çatalca on a 220 acre plot. Hisarcıklıoğlu said, “As part of the modernization process, we will take important steps in addressing İstanbul’s need for a Logistics Center here and making our country a trade hub. As TOBB, we will invest 225 million TL to this project over 5 years. Hopefully a year after construction starts we will have completed the investments and open it up for operations.”

TOBB President Hisarcıklıoğlu went on:

“We are basking in the well deserved pride and happiness successfully continuing the modernization projects of the customs gates, the most effective and important example of private and public sector cooperation. The expansion of this procedure to include the region’s other countries will provide important contributions to the development of East-West trade and land transportation.
With your support, these projects provide an example for the customs procedures of other countries on the ancient Silk Road. In this regard, talks with Iran to make all customs gates between Iran and Turkey into “shared customs gates” are still ongoing. Likewise, talks with Georgia and Bulgaria to have GTİ take on the modernization of their customs gates are underway. I believe that with this vision, we will soon turn our country into the most important trade route and logistics center between Asia and Europe.”
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