Turkey as a transit hub: geo-economic significance

Post Series: Transit Through Turkey

Turkey has consolidated its position in recent years as a major transit hub at the crossroads of Europe, the Middle East, the Caucasus and Central Asia.

Its favorable geography, extensive port and transport infrastructure, and multimodal corridors create a versatile platform for redirecting flows between western and eastern markets. For companies seeking to reduce risk and accelerate cash-to-cash cycles, the Turkish factor can be a strategic advantage when properly integrated into the supply-chain design.

Geographically, Turkey links container and Ro-Ro flows from Europe toward the Caucasus and Caspian; Asian and Southeast Asian flows land in Mersin and Izmir; while Istanbul (IST) provides quick air insertions for critical shipments. The customs and trade frameworks that exist for a number of industrial goods also reduce administrative friction for companies that maintain correct documentation and compliance processes.

Domestic infrastructure supports multiple modal options: major ports (Ambarlı, Mersin, Izmir, Samsun) act as transshipment and consolidation nodes; the Baku-Tbilisi-Kars (BTK) railway and trans-Caspian connections provide rail access to Central Asia; and dry ports/logistics parks deliver buffering capacity to smooth seasonality. This multimodal mix enables route designs tuned to total cost of ownership (TCO) and required service levels (SLA).

However, advantages coexist with risks: seasonal terminal congestion, queues at Caspian ferries, volatile surcharges (PSS, war-risk) and tighter banking/sanctions filters. Successful deployment of Turkish routes requires proactive slot booking, buffer windows, standardized compliance packages (HS codes, EUD, origin certificates) and an aligned financial architecture (LCs, escrow).

The business value manifests along four vectors: speed and resilience via multimodal options; cost optimization by blending FCL/LCL and leveraging dry ports; operational flexibility to switch corridors under external shocks; and improved compliance control through local provider expertise. For companies targeting CIS and Central Asian markets, embedding Turkey into the logistics strategy can deliver measurable competitive benefits when governed by scenario planning and rigorous operational discipline.

Recommendation: treat Turkey as a strategic supply-chain node rather than a mere transit point. Build scenario plans (base / escalation / de-escalation), standardize compliance packages and lock SLAs with key terminals and 3PL/4PL partners to maximize gains and reduce operational risk.