Özyeğin University 3rd İstanbul Hub Seminar 27 04 2017

AGENDA

 Aircargo Market Growth on Value & Volume Basis in Turkey & Globally

 Istanbul Current Airports Quick Outlook

 İstanbul New Airport Cargo Facility Outlook

 Challenges

Evolution of Air Cargo Volume by Regions

The Cargo activity is mostly driven by the sustained growth of air freight volume, notably in emerging regions

126.0 CAGR 15-20 ddle-East +4.0% Afr Mi La As Eu No 10.0 6.4 6.2 52.1 5.9 5.6 49.9 5.4 47.8 5.1 45.6 43.6 41.6 21.1 21.7 19.8 20.5 18.6 19.2 32.0 32.7 33.3 30.0 30.6 31.3

Source: DKMA , Roland Berger

[m tons]

4

Market Growth in Cargo 1,644 1,726 2,021 2,249 2,249 2,593 2,893 3,073 2,942 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2008 2009 2010 2011 2012 2013 2014 2015 2016 TON (000)

Source: General Directorate of State Airports Authority (DHMI)

(million)

2003-2015

198% Increase

Turkish Market Growth in Air Cargo

Turkish Air Cargo Market Volumes by Airports

%61

0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000

İstanbul Atatürk İstanbul Sabiha Gökçen

Ankara Esenboğa İzmir Adnan Menderes Antalya TOTAL OF 5 AIRPORT OVERALL TURKEY CARGO

2016 2015 2014 %4 %8 %87 %100 %11 %4

“Although Road Freight,Sea Freight and Rail Freight trades are

Declining/ Stable

Air Freight Trade is ’‘Increasing”

Source : Turkey Statistical Institute

Turkey Logistic Mode of Transport

The 2023 vision of Turkey is to achieve 500 Billion USD on Import&Export Foreign Trade

Exports by mode of transport, 2013-2016)

Year Sea Rail Road Air Other

2016 78.409.448 641.446 44.760.797 17.747.106 987.150 2015 78.036.876 806.721 46.708.755 17.275.523 1.010.997 2014 86.304.496 922.776 55.270.960 14.103.312 1.008.613 2013 82.930.885 956.521 53.674.535 12.960.697 1.279.999

Imports by mode of transport, 2013-2016

Year Sea Rail Road Air Other

2016 120 374 893 1 428 154 34 306 712 22 969 548 19 536 832 2015 124 439 886 1 169 581 34 364 154 20 002 844 27 257 894 2014 141 381 287 1 206 626 37 300 980 24 696 997 37 591 227 2013 139 927 201 1 773 400 40 058 217 32 602 866 37 299 565

Turkish Air Cargo Market Growth on Value (

$

)

2014 Air share was

% 19

2016 it reaches to

% 24

But unlikely still not in the

top 20 for Cargo airports

rankings for now..

Global Cargo Airports Ranking

18

th by GDP

14

th on Pax Traffic

Atatürk International Airport ( IST )

Sabiha Gökçen Airport ( SAW )

IST & SAW AIRPORTS

% 72

AIRPORTS LOCATION in ISTANBUL

SOURCE: GENERAL DIRECTORATE OF STATE AIRPORTS AUTHORITY

Özyeğin University 3rd İstanbul Hub Seminar 27 04 2017

IST

 Onwed and managed by DHMI

 Terminal managed by TAV Airports

 Contract valid until 2020

 61 million passengers in 2015

 Three Runways

SAW

 Onwed by Defense ATM managed by DHMI

 Terminal managed by Malaysia Airports

 28 million passengers in 2015

THE LARGEST AIRPORT IN THE WORLD Atatürk International Airport

Sabiha Gökçen Airport

GENERAL INFORMATION

 Owner of the Land & Airport: General Directorate Of

State Airports Authority (DHMI)

 Members of the IGA Consortium: Cengiz, Mapa,

Limak, Kolin and Kalyon Holdings

 Planned Investment: 10,3 billion EUR during

construction

 BOT* Period: 42 Months (construction) + 25 Years

(operations)

AIRPORT FEATURES





Location: North of Istanbul, 35 km distance to

city centre

Airport Area: 76,5 million square meters Passenger Capacity: 90 million (2018), 150

million (2028)

Support Area1 : 1,390,000 m²

Additional Buildings: Airport City (Offices,

Hotels, Conference and Exhibition Buildings, Hospitals, Training Centres), Parking Garage and Station, Port etc…

 

Master Plan Phases ( We Focus on Cargo )

Facilities 2 Million Pax

MNG Phase 1A

Cargo Warehouses

Customs , Forwarders area

Cargo City

– Phases 1

Warehouses /Customs / Forwarder areas

Support Area1 : 1,390,000 m² Freighter Stands : 37

Support Area2 : 200,000 m² (Phase4) Freighter Stands : 6

Cargo Bonded Warehouse (Online) Phase1 : 130,000 m²

Phase2 : 215,000 m² Phase3 : 270,000 m²

Phase4 : 300,000 m² (+Support Area2)

Agent/Forwarder Non Bonded Warehouse (Offline)*

Phase1 : 30,000 m² Phase2 : 50,000 m² Phase3 : 80,000 m²

Phase4 : 100,000 m² (+Support Area2)

Online Warehouses Express Cargo Warehouses Online Warehouse PTT Cargo Warehouse Online Warehouse MNG Airlines Forwarders Customs& Agencies Forwarders Online Expansion Zone

Air Side Tunnel and Road to Terminal Pier min.1,900m max. 3,305m LandSide Road min 2 ,max.4 Lane Roads 1,700m»

Air Side Tunnel and Road to Caterıng Area;1,230m

Handlıng Area;780m THY Campus;1,800m

• Land and air Side Connections • Social areas

• Canteens and Cafes • Mosque • Forwarders • Connections to Apron • Security Gates THY CAMPUS CATERING HANDLING COMPANIES CAMPUS

Land Side Road to Cargo City 1,120m

Apron Tunnel 470m, Cargo City min2,max4 lane

roads 1,700m 3,290mTotal to Cargo City

Air Side Tunnel and Road to Caterıng Area;1,230m

Handlıng Area;780m THY Campus;1,800m

Cargo City

– Phases 1

Handling,Catering Facilitiy areas

Water Tank And Drınkable Water Pump Regıonal Aır Traffıc Control Buıldıng Airport Maıntenance Center Aırport Snow Center Garage Buıldıng

Solid Waste And Waste Collection Zone Meteorology Center Duty-free Wharehouse 16

Cargo City – Phases 1

Access by airside Tunnels to Passenger Aircrafts

Air Side Tunnel and Road to Terminal

CHALLENGES

 Operational Readiness and Airport Transfer ( ORAT )

 Improvements on customs transit procedures

 Efficiency of customs and border management clearance ( hub & spoke )

 24/7 Full operations on customs

CHALLENGES

 Easy Access to airport facilities within city areas

 Multimodal / intermodal transportation strategies ( road,sea,rail modes …)

 The competence & quality of logistic services

Turkey Logistic Performance Index ( 2012-2016 ) 2012 Score /

Rank 2014 Score / Rank

2016 Score / Rank

The effiency of customs & border management

clearance 3,16 / 32 3,23 / 34 3,18 / 36

The quality of trade & transport infrastructure _{3,62 / 25 3,53 / 27 3,49 / 31} The ease of arranging competitively priced shipments

3,38 / 30 3,18 / 48 3,41 / 35

The competence and quality of logistic services _{3,52 / 26 3,64 / 22 3,31 / 36} The ability to track and trace consignments

3,54 / 29 3,77 / 19 3,39 / 43

Timeliness of shipments in reaching destination

within the scheduled or expected delivery time. _{3,87 / 27 3,68 / 41 3,75 / 40}

Source: World Bank

Turkey’s Logistic Performance Index (2012-2016)

• In 2012 rank 27th • In 2014 rank 30th • In 2016 rank 34th

LPI intends to provide necessary information for the steps to be taken so as to reduce the logistic troubles occured in the international commence.

MNG AIRLINES

THANK YOU .

For more information:

26

• 2. Trade corridors and transport facilitation projects are critical to addressing the needs of landlocked developing countries and targeting improvements such as transit and border infrastructure (for example, one-stop border facilities; box 3.1), transit procedures, and the reduction of controls in transit.

• 1. Border management reforms targeting improvements in customs processing and the coordination of controls by other agencies, for instance, risk management, the reduction of physical inspection, automation, and the implementation of single windows to facilitate information sharing, as well as the transparency of information and transactions for traders