Transbosphor Denizcilik Chairman of the Board and IMEAK Chamber of Shipping (DTO) Board Member Captain Mustafa Can attended the Last Session program presented by Ali Çağatay on EkoTürk TV. Explaining maritime economy from A to izzard, Captain Mustafa Can said that the big ship companies in the world have opened offices in Turkey and that the maritime industry will raise Turkey to the top with a little support from the state. Can said that all projects came to life before the maritime ministry was realised.
Captain Mustafa Can says :
“I graduated from the best in the business”
“I am a graduate of ITU Maritime Faculty. This university is the master of this business. I presented the Turkish flag as a captain in the seas of the world for 10 years. Then I worked as a port manager. To repay my debt of gratitude to my school, I taught at my own university for 5 years then I started shipping agency. You see the return of the maritime economy as cargo owners are also your stakeholders in the agency where you serve all types of ships. If the bill of lading didn’t come from the bank, you even have the authority not to unload your cargo. It is one of the most important jobs in the world. In 2010, when the maritime markets were very bad, I established my first maritime company. From that day until today, in 11 years we have reached 6 large ships of 6 thousand tons from 2 small ships of 3 thousand tons.
We couldn’t find a load for the first six months
“With the onset of the pandemic, our ships suffered very seriously. For the first six months, we could hardly find a load because the sudden closures also affected the producers. They decided not to produce until the goods in their possession were exhausted. But last December, I said that whether the vaccine is useful or not, people’s consumption needs have to be met. Factories that do not have raw materials in their warehouses will face a serious demand problem. I made a claim that steel prices would increase and there would be incredible price increases in ships.”
Container companies do not want new ships
“Since 2008, shipping markets suffered a lot and hundreds went bankrupt. Large container companies went bankrupt. I said that it would take another year for this to reflect. As a matter of fact, we have shipyards that produce construction ships with high technology. We have seen that there is no increase at the moment. There are ships that are only in Norwegian shipyards, and there are also a few river-type ships. Container companies have also filled their orders next year, as they earn so much. They neither want to put new ships nor open new lines. They think this job is temporary. They also show the low baltic dry index in recent days as proof. I don’t think so. I think this is a corrective action, it will go up to 2500 – 3000 again and even break the 2008 record again.”
However, ship orders will start next year
“I think ship orders will start next year because there is still no satisfaction with consumption. You cannot find a new car, you wait in line for 3-4 months for luxury cars. Due to the chip crisis, cars without front panels are coming from England. They say you can put chips and sell them there. They can give a day after three months. This will not over because chip manufacturers also think that this is temporary and they do not make new investments. When they think to move on, this job will continue for at least six more months. This consumption demand will also remain at a high level. Our radars are affected by the chip crisis due to our technical equipment, but we do not face this situation as there is no demand for new ships at the moment. There are problems with new cars, new electronic devices, factory devices, even scales. The price increase it created is already reflected.”
If you go to the port, there is no staff
“The real problem is not just the scarcity of container ships. While container ship going to port, there are no people to evacuate at the port. When you evacuated at this time there is no truck driver. If we produce container ships, they will lie fallow. This situation will continue until the entire chain recovers from the effects of this pandemic. High prices will be encountered on container ships for a minimum of two years.”
The projects are delusion without the Ministry of Maritime Affairs
“There was a Koster Project. Without the Ministry of Maritime Affairs, such projects are a dream. In the beginning, you have to establish a maritime ministry and give this sector its due and then you will enter into these expectations. Our coaster ships were number one in the Mediterranean. These are very old. As DTO, we set out to develop a coaster renewal project together with the government. How many ministers have we seen for exactly 8 years, they all said ‘we will do it for sure’. The state did not even say, ‘Compound 10 people and we will vouch for you’. Therefore, we could not find the power to explain this to the state. It turns out how right we were. These ships make 10 thousand dollars a day. This is a lot of money. When you consider that this will continue for two more years, it could reach 15-20 billion dollars. Unfortunately, Turkey missed it.”
The state should support CGF
“Our shipyards are very successful. We’ve revolutionized chemical tankers. Almost half of the tonnage up to 20 thousand tons in the world is produced by Turkish shipyards. After 2008, when the unfinished ones were completed, new constructions did not come again. How can the government encourage newly built ships and Turkish owned ships? They said scrap incentive, I claimed that nothing will come of this business and I was right. The state said in 2013, bring your ship for scrap and I’ll give you double. At that time, the banks were on top of the shipowner, he couldn’t move. He could not afford to scrap a ship he used to earn his living and wait two years for a new construction.. There was no bank to give loans to the ships anyway. If someone had said, ‘I will support it with the Credit Guarantee Fund (CGF), it would have been very useful’.”
There is an example of a low interest loan
“The 1980 military government issued low-interest loans. Ninety percent of the current companies have become this way through them. It took the first step in Turkey’s transition to the big ship. This government and this state have to do it again. When the Turkish shipyard condition was put together with the CGF, the price would go up ten percent, but it would be done in a Turkish shipyard and it would be done with the loans of Turkish banks. For example, we would buy goods from Russia and take them to Algeria. The freight would be on us. In other words, our foreign trade deficit would be closed from a business that had nothing to do with Turkey. Hopefully we will be able to achieve this in the years to come.”
Even the prime minister couldn’t tell
“We have Turkish-owned but foreign-flagged ships 3-4 times as many as the Turkish-flagged ship. The world’s largest ship owners are now opening offices in Turkey. We provide employment. Since the employees are Turkish, they also plan the repairs of the ships in Turkey. Turkish sailors began to take a very large place in the world maritime economy. In Singapore, the port is cheap, everything is cheap, credit is free, everything is free. Even from there, there are very big companies that have moved their offices here. There are tanker companies. There are also companies that are waiting for them saying, “Let’s see what they are doing”. In this regard, a separate arrangement should be made in order for our government to bring all the trade of the companies here. A separate zone is established, called the seafarers’ zone. Make sure that Turkey’s foreign trade deficit ends. I am speaking so assertively. The ships owned by the son of our former prime minister, Binali Yıldırım, are operated from the Netherlands. So our regulations are not appropriate. Our finances are not ready for this. There are serious problems with our finance officers. Since I know that even the prime minister can’t tell, who am I to tell?”
New shipbreaking zone required
“If Turkey opens its arms to all seafaring companies, it is not a dream for us to see 40 percent in the world market. We’re more than good at shipbreaking. There will be greater demands in the meantime. We need to open a new shipbreaking place. It could be in the Black Sea. Izmir Aliaga is not enough anymore. There was a study about it in progress and it has been stopped. I know this has been put before our transport minister again. I think they should do this. It will bring life to the Black Sea. There are hundreds of ships that are unable to pass the straits from the Black Sea, have sunk in dozens of regions up to the Turkish republics, and are waiting for recycling.”