One of the largest container terminals in Türkiye, DP World Yarımca, situated in northwestern Kocaeli province has paved the way for reducing trade times between China and the country to approximately 25 days, according to the company on Thursday.
DP World Yarımca, by utilizing a previously unused railway route from China to Türkiye, has deducted the trade times affected by the Red Sea disruptions from up to 60 days.
According to a statement from the company, Türkiye has become a production center, especially in the automotive sector, in recent years.
The importance of steel, chemicals and other essential raw materials coming mainly from China and other Asian countries has significantly increased due to these productions.
However, the recent disruptions in the Red Sea have caused significant delays for Turkish importers and exporters. With ships unable to use the Red Sea, transportation times have increased to approximately 60 days due to the need to navigate around the southern tip of Africa, adversely affecting the availability and supply process of materials vital to the automotive industry.
During this period of disruptions in global supply chains due to ongoing issues in the Red Sea, DP World Yarımca has provided a new solution to alleviate the critical shortage of raw materials affecting Turkish importers, especially in sectors such as automotive.
Responding to the urgent needs of numerous manufacturers and importers using Türkiye as a production and export hub for the automotive sector, DP World Yarımca has started using a previously unused railway route from China to Türkiye to ensure the arrival of vital raw materials in the country.
With this route, trade times through the Red Sea have been reduced to approximately 25 days.
This route, starting from China, passes through Central Asia to reach Azerbaijan's capital Baku, and from there the goods are transported to Türkiye. At the end of this route, goods originating from China are delivered to various factories in Türkiye using various transportation methods.
This not only bypasses the delays caused by congestion in the Suez Canal but also strengthens customers' supply chains and increases competitive advantages.
The efficiency of the service will be further enhanced by combining it with a new route passing through Georgia after maintenance works are completed in 2025. This will further reduce transportation costs, making the route more economical and sustainable for customers.
CEO of DP World Yarımca, Kris Adams, stated that this new route is a feasible option designed to offer a middle ground in terms of speed and cost, helping customers overcome global disruptions by their teams.
"Air transportation offers speed but is costly and has limited capacity. The new route provides a seamless and efficient transportation process from origin to destination using rail and trucking services," he remarked.
Rashid Abdulla, CEO and general manager of DP World Europe, noted their commitment to facilitating trade in Europe with this route and showcasing their ability to provide rapid solutions to urgent issues for their customers. He emphasized their dedication to maintaining the flow of trade and supporting global supply chains.
Hakan Ayhan, CEO of IFC Vesuvius, mentioned that one of their customers had experienced interruptions in material flows due to difficulties in the Red Sea, leading to increased costs and uncertainties.
"This service has been a lifesaver for us for urgent materials, allowing us to continue our operations and meet customer demands," he said.
