Drivers of Logistics Performance: A Case Study of Turkey
Understanding and breaking down the elements of trade and logistics performance can help countries improve freight transport efficiency and highlight where international cooperation is helpful to overcome barriers.
We use an international benchmarking tool – the World Bank’s Logistics Performance Index (LPI) – to identify factors that have a critical impact on competitiveness, and to understand which policies may reduce persistent bottlenecks. In this context, we undertook a case study looking at the logistics performance of Turkey. To do this we completed extensive desk research and quantitative analysis concerning the country’s logistics performance. We also conducted a series of in-country meetings with experts, policy makers, associations, and selected companies involved in trade and logistics services. These meetings were held under the guidance and participation of Professor Lauri Ojala, University of Turku.
What we found
- Turkey’s customs clearance has improved as a result of a decrease in the variability of clearance times.
- Massive road investment plays a crucial role in increasing Turkey’s infrastructure performance in the LPI...
- ...on the other hand, Turkey’s heavily road-dominated transport system results in high transport costs.
- Port hinterlands are limited.
- Turkey’s logistics performance is primarily bolstered by the development of the private sector.
- External factors and political risks increase shipment costs and decrease on-time performance.
- Variability is one of the main factors of efficiency of customs and border clearance.
- Capacity management plays a vital role in infrastructure efficiency.
- Intermodal transport systems, including good access to roads, terminals and seaport channels ensure a high-quality transport infrastructure.
- A successful and powerful private sector is the leading factor in providing high quality logistics services.
- Resilience-improving policies and investments are necessary.