Logistics

According to the results of the “2008 Turkish Logistics Sector Study,” which is also supported by Borusan Lojistik, the Turkish logistics sector market size is close to TL 25.4 billion and 37% of the total revenue is generated by service providers, while the remaining 63% originated from logistical net asset usage in service areas.

Borusan Lojistik operates its port and 3PL businesses with a focus on creating synergy through service diversification, service integration, regional coverage, efficiency and knowhow. With current subsidiaries established in Iran, Algeria, the Netherlands, the UAE and the U.S., the Company continues to develop in line with its vision of providing “leadership that crosses borders in the logistics sector.”

The Company generated a turnover of $ 252 million in 2008. The volume of land transportation business remained unchanged last year at 4.6 million tons. General cargo handling amounted to 2.2 million tons and there was a 4% increase in container handling and a 33% growth in vehicle parking at the Borusan Gemlik Port. This rise in business volume was successfully achieved while the Port Expansion Investment Project was ongoing.

By the end of 2008 the warehousing capacity covered an area of 185,000 m2. At the start of 2008 the capacity of the Köseköy Pre-Delivery Inspection Service and Storage Facility was expanded by 50,000 m2, to a total of 235,000 m2.

The Borusan Gemlik Port is also being expanded to better meet the growing demand and business volumes from the South Marmara region. The first stage of the most recent investment, with a projected cost of nearly $ 100 million, began in January of 2008 and is scheduled for completion by the final quarter of 2009. By end of the first phase of investments, the general handling capacity will increase to 6.5 million tons of general cargo, 400,000 TEU containers and 250,000 vehicles, while there will be 1,400 meters of docking space and 280,000 m2 of terminal area. The second and third phases of the investment, which are projected to cost $65 million, are scheduled to be completed during 2012. With a total capacity of 7.5 million tons of general cargo and space for more than 650,000 TEU containers, it will be the largest port in the southern Mediterranean region.

In addition to its operational successes in 2008 Borusan Lojistik also began to recognize the benefits of the integration of modern administrative applications, which it has been utilizing as a managerial tool to reach strategic targets. The Company was granted the 2008 National Quality Success Award, becoming the first Turkish logistics company to receive this award in the large scale operations category.

In November of 2008 the Company also received the "IIP - Investors In People” certification, which is the first and only international human resources standard. With this certificate Borusan Lojistik became the first Turkish logistics company to document its investments in people. As a result of all these applications Borusan Lojistik successfully managed to increase employee satisfaction from 75% to 89% among its office personnel, and from 54% to 83% among its field personnel.

According to the results of the customer satisfaction and respectability survey initiated by Borusan Lojistik in 2008, the customer satisfaction level TRI*M Index score increased 7 points over 2007 and stood at 81 points while the respectability survey score climbed 4 points higher to a total of 95 points.

It is anticipated that the effects of the global economic crisis will be felt in the logistics sector in 2009 in parallel with overall contractions in demand and production. For this reason, the year is expected to be one during which it will be more important than ever to maintain the existing structure without giving up the objective of profitable growth and to achieve effective resource management and financial discipline.