3PLs' increasing appetite in warehousing business in Turkey

Essay by afsino January 2007

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3PLs' increasing appetite in warehousing business... As Turkish companies tend to focus on their core businesses rather than investing in warehouses, 3PLs' have been experiencing a fierce competition in the sector lately to acquire strategic locations to build warehouses. Although land, lease or staff costs seems to be the main concern for logistics companies, the profitable structure of warehousing business raise 3PLs' appetite to increase their investments in storage capacity expansion going forward.

3PLs in Turkey perform special warehousing services based on their customer needs, in which the table above demonstrates the total covered custom bonded and unbonded warehousing spaces of well capitiliazed logistics players. The main key is to find the right location to execute distribution to end customers, to set up the storage lay out and to provide JIT (Just-in-Time) services.

Alisan Logistics: Established in 1985, Alisan Logistics has been running its logistics activities with a fleet of 200 owned trucks.

The company's main distinction from other 3PLs mainly comes from its specialized chemical (powder&liquid) transportation business. Alisan Logistics will end 2006 with 4,350 sqm warehousing space and expected to increase the figure to 5,000 in 2007YE.

Arkas Logistics: Arkas Logistics, a subsidiary of Arkas Holding, mainly provides domestic, cold chain,import-export transportation, overseas and domestic distribution and storage services, railway transportation and container transportation to its customers. The company currently, has 15,000 sqm of storage space. Arkas Logistics will invest in storage capacity expansion by 40,000 sqm in 2007. The parent company, Arkas Holding is active in maritime shipping, port and container terminal operations, air freight services, railway and automotive transportation with other group companies.

Balnak Logistics: Balnak Logistics is one of the leading 3PL company since 1988. The company offers land, air, maritime, railway services plus domestic distribution and custom clearance services.