TURKEY: An Introduction to Shipping
Besides their geopolitical and strategical importance, the Turkish Straits are highly congested with international maritime traffic – owing to the fact that they are the sole waterway connecting the Black Sea and the Mediterranean Sea. In total, almost 40,000 ships traversed Istanbul’s Bosphorus Strait in 2022.
Turkey’s geographical position alone provides for a robust marine sector, regardless of other factors. The shipyards, renowned for their skilled and innovative work, serve government and commercial clients worldwide. Additionally, given that Turkey connects Europe and Asia, suppliers from various industries find it advantageous to conduct business here. The shipbuilding and repair business is regarded as one of the most promising industries in Turkey and has enjoyed substantial growth in recent years.
The total number of yachts in the Mediterranean basin has now reached approximately 1 million, following significant increases every year. France, Spain and Italy make up 75% of the Mediterranean basin marina capacities. However, the restriction of new investment locations in these countries, the pollution of the western Mediterranean Sea and the increase in operator fees made the eastern Mediterranean countries attractive.
As of August 2021, there are a total of 649 boat manufacturing sites (152 of which are on the coast) and a total of 151 boatyards (27 of which are on the coast) – 38 of these structures have tourism operation or investment certificates. Turkey’s yacht-mooring capacity in the sea of coastal structures with tourism operation certificates is 15,150.
The New Turkish Commercial Code
From a legal perspective, the Turkish Commercial Code 1957 has recently been amended by a new Turkish Commercial Code (the “new TCC”), which came into force on 1 July 2012. The language of the new TCC is more simplified than its predecessor. In the past, many of the international maritime conventions to which Turkey is a signatory had been incorporated into its domestic legislation by the German Commercial Code (GCC), which formed part of the old TCC.
The new TCC was introduced to address general dissatisfaction with the lack of uniformity in the previous legislation. İn the case of maritime casualties such as collisions, grounding, and other casualties, the new TCC is the fundamental legal source, followed by International Maritime Conventions (of which Turkey is a signatory).
The new TCC contains the Maritime Law, which is crucial for foreign investors wishing to conduct business in this sector in Turkey. This legislation governs key concerns, such as the purchase/sale of ships, the rights of shipowners, the usage of the Turkish flag, the owner’s responsibilities, etc.
Within the new TCC, foreign investors may find the regulations related to loading, discharging, the transportation of goods, and any accidents that may happen at sea. These accidents are also regulated by international legislation. The Turkish authorities are represented by the Coastal Safety and Vessel Salvage Management, an entity that is present in all the ports of Turkey and in its waters.
In order to protect the health and wealth of Turkey’s own waters, the Turkish Environmental Code is used as the main law to prevent pollutions during and after the shipping process. Under this code, significant fines are imposed on ships contribute to the process of pollution by releasing petroleum, chemicals, garbage, sewage and other environmentally harmful materials into the Turkish waters. In addition, Turkey and its shipping sector acknowledges international environment conventions as part of the regulations to protect its waters.
COVID-19 Measures in Relation to the Turkish Shipping Industry
Since the Maritime Health Declaration was issued in the middle of 2020, the Turkish Authority has taken further measures to ensure safety with regard to the pandemic. These measures have been effective in controlling the spread of COVID-19 and minimising its damage. Notably, the exemption for truck drivers and seamen when it comes to presenting a PCR test, and the quarantine requirements placed on others coming into the country, have enabled all transactions in Turkish ports to be handled more effectively – given that they have their own health processes to go through in their line of work.
Some of the health measures are still in force, including quarantine for crew members who have tested positive for COVID-19, PCR tests, and other measures aimed at ensuring safety in the workplace.
The Outlook
As international trade begins to recover from the COVID-19 pandemic, the shipping sector in Turkey is expected to grow significantly in the post-pandemic years. The increase in enforcement of the digital logistic and the number of smart ports in Turkey are among several developments that will help boost the industry.
As stated previously, Turkey has a geographical advantage within the maritime industry, further development in the shipping sector throughout the country, legal and technical regulations that are regularly updated by the authorities, and the potential to become the hub of the international maritime and shipping sector. All these factors combine to attract investment in Turkey.