A Strategic Base in the Global Supply Chain: Türkiye

Abstract

Türkiye is becoming a new base in the global supply chain due to its geopolitical position and the cost advantages it provides. Due to the COVID-19 outbreak, logistics problems, especially production and transportation costs, have further strengthened Türkiye's position in this context. Türkiye's strategic location, strong logistics infrastructure, costeffective and qualified workforce, along with a liberal investment climate, offer a suitable environment for international companies. Türkiye ranks well in the World Bank’s Logistics Performance Index, which valuates countries' logistics performance in customs, transportation, and infrastructure. Türkiye has served as a bridge between the east and west since historical times. During the Seljuk period, caravanserais and other infrastructure and service areas were established in Anatolia to support commercial activities. The Silk Road, which had an important place until a certain period of the Ottoman Empire, lost its importance due to other developments. The "One Belt One Road Project" initiated by China, still in progress and planned to be completed in 2049, will make Türkiye even more important in terms of the global supply chain in the next 10 years. İpekyolu follows the northern and southern routes in Anatolia. With China's "One Belt One Road Project", the Silk Road will regain its former importance as the "Modern Silk Road". Chinese President Xi Jinping fi rst mentioned the Land and Sea Silk Road project in one of his speeches in 2013. It has been decided to name these two projects as the "Belt and Road Initiative-BRI" or the "One Belt One Road-OBOR" project. The word belt constitutes the land route of the project, which includes highways, railways, oil and natural gas pipelines, and infrastructure investments. The word road includes the sea routes covered by the project. The routes of these corridors are provided by multidimensional corridors in the direction of Asia-Europe instead of a single route. Within the scope of this project, many infrastructure investments are made in Türkiye as well. In this study, the cost advantages that Türkiye will provide to the global supply chain will be evaluated due to both its cost and geographical location and the infrastructure investments made.