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Shipping giants bid to operate in Istanbul's new airport

Set to open in October, Istanbul's new airport is expected to make the city a center of global air shipping. The world's leading cargo companies have already bid to rent areas in the airport

Daily Sabah ECONOMY
Published June 18,2018
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United Postal Service (UPS), DHL and FedEx have been reported to submit their bids to lease areas to run shipping and cargo freight operations in Istanbul’s new airport due to start operating on Oct. 29.

Prominent global shipping giants like United Postal Service (UPS), DHL and FedEx have all submitted bids to lease areas at Istanbul's new airport, which is set to become the world's largest when it opens in October. Istanbul will also turn into the world's logistics hub, in addition to its central role in passenger traffic with the inauguration of the new airport on Oct. 29, Transportation, Maritime Affairs and Communication Minister Ahmet Arslan said. The airport is 90 percent complete and has already attracted the attention of leading global corporations, the minister noted.

The first stage of the new airport, which will have been completed in 42 months, will serve 90 million passengers annually. It will accommodate 3,500 take-offs and landings per day.

Moreover, the airport will have a 100,000 square meters of living space, a 25,000-capacity parking area, 143 boarding bridges, a 42-kilometer baggage system and a cargo capacity for 5.5 million tons of freight.

Minister Arslan said that the new airport will generate TL 73 billion ($15.44 billion) for the Turkish economy and will create more than 225,000 jobs.

He underscored that as air cargo continues to improve in the world and Turkey, Istanbul will be a center for passenger transportation as well as air cargo operations.

"In order to unleash the potential of Turkey's operational and currently-under-construction airports, in particular, the Istanbul's new airport, a new legislation has been prepared for cargo and postal services. It was the result of multiple meetings and workshops held between relevant institutions and corporations," the minister said.

The legislation stipulates that the shipping and postal services will be provided by foreign and local companies that fully comply with the legislative terms.

Minister Arslan highlighted that there is no condition that Turkish partners must hold majority stakes in the logistics companies that want to operate out of Istanbul's new airport.

"This amendment will allow global shipping companies to operate in Turkey and create a competitive environment," Arslan said, adding that the new Istanbul airport will be a big step towards making Turkey and the region an air freight transport hub.

Global logistics giant DHL Express Turkey CEO Claus Lassen recently said that Istanbul New Airport will make Turkey a regional logistics hub. He said explained that DHL is preparing to establish a 42,000-square-meter operation center there.

DHL Express holds a 53 percent a market share in Turkey's logistics sector. It operates in the country at 50 points with 1,000 employees and provides services for some 12,000 customers. The company has a fleet of 400 vehicles and two cargo planes.

Lassen highlighted that DHL sees the new airport as a significant opportunity for Turkey to become a regional logistics market.

The company is planning to build a new operation center at the new Istanbul airport. The new 42,000-square-meter fully automated operation center will be equipped with cutting-edge technology and green solutions.

IGA, the operator of a massive new airport, announced last year that it has inked cargo service deals worth 250 million euros with six local freight and logistics companies.

Six of Turkey's largest cargo companies including MNG, PTT, Çelebi Hava Servisi, HAVAŞ, Sistem Logistics and Bilin Logistics will serve at the Cargo City while MNG, Çelebi Hava Servisi and HAVAŞ will also operate on the Ground Services Campus, The new airport on the European side of Istanbul has designated 1.4 million square meters for cargo operations, including cargo aircraft parking areas. An additional 150,000 square meters has been allocated for ground services.