Category: Business

  • High-speed rail sets pace in Turkey

    High-speed rail sets pace in Turkey

    00221917e13e0f8b701215

    A tunnel-boring machine is crucial in building a high-speed railroad in Turkey. The current phase covers 158 km, and just over one-third of the track must travel through tunnels. The longest is 6.1 km. Zhang Haizhou / China Daily

     

    Ge Meng, an engineer, is one of about 40 Chinese working on this project. Zhang Haizhou / China Daily

    Project serves as springboard to enter European market, reports Zhang Haizhou in Ankara.

    It was noontime and the temperature was more than 30 C on this typical summer day in Pamukova, in mountainous west Turkey.

    When everyone else was having a lunch break indoors, chief engineer Wu Jiuyi was standing in the sun, staring at steel tracks piled and glinting on the muddy land, 160 kilometers southeast of Istanbul.

    “We have everything ready,” he said as he scratched his forehead. “If the Turks can hand over the finished groundwork we can lay the tracks quickly and do the other work to wrap up this project.”

    The project is a 158-km high-speed railway (HSR) between Inonu and Kosekoy, Phase 2 of a prospective 533-km Ankara-Istanbul line.

    Expected running speed on the new line will be 250 km/h.

    As high-speed rail develops rapidly in China, the country is working hard to sell its technology and products to Europe.

    News reports have mentioned China’s ambitions to have its high-speed rail operating in European countries, including the United Kingdom, Bulgaria and Hungary.

    But the project Wu and his colleagues, from the China Civil Engineering Construction Corp, are building in Turkey remains the only Chinese HSR project in Europe.

    Turkey’s economy is counted as European, and ranked sixth, as the country seeks membership in the European Union. Geographically, about 97 percent of Turkey lies in Asia and the 3 percent in the extreme northwest in Europe.

    Construction began in October 2008, and plans call for the line to open by December 2013.

    “We now have 35,000 tons of steel track, bought from Italy, ready for the project. All other equipment is almost ready, too,” said Wu, who’s the chief engineer in charge of laying all the tracks.

    On Monday, the first batch of equipment from China was unloaded at Istanbul’s Haydarpasa port. It included two 117-ton freight locomotives and a special ballast-roller.

    Two Turkish companies, in partnership with China Civil Engineering, are doing the groundwork. In mountainous Turkey, Wu and his colleagues have frankly expressed their concern that the work may be delayed.

    The terrain poses the biggest difficulty, said Zheng Jianbing, senior engineer and assistant president of China Civil Engineering. “Phase 2 is the most difficult part of the Ankara-Istanbul HSR.”

    Although the project is just 158 km long, 55 km of it involves tunnels and 10 km is bridges. The longest tunnel is 6.1 km, the longest bridge 1.96 km. The highest part of the project is more than 800 meters above sea level, the lowest about 20 meters.

    “More surveys than expected need to be done during the course of the construction due to the difficult terrain. The influence on the progress is quite big,” Zheng said.

    Springboard to Europe

    Despite those challenges, Zheng said the 158-km project is very significant for the company and the development of Chinese high-speed rail overseas. “We consider it a springboard to enter the European market.”

    And it will produce “zero” financial profit for his company, he said.

    But Zheng, who has spent more than a decade building railways abroad, also said China should take a measured pace in trying to push its technology into the European market.

    Take Bulgaria, for example. Alexander Tsvetkov, then Bulgaria’s minister of transport, announced in early November that Sofia had been invited to join the project for high-speed rail from China through Turkey and Bulgaria to central and western Europe.

    Zheng admitted his company hopes to extend its business to Bulgaria, but he said it’s still too early for a concrete plan or project.

    “I think it’s better to be slow,” he said. “It’s a fresh market, and there are many rules in the European market. Like in Turkey, I still cannot say I understand everything, though we began here in 2004.”

    Some European high-speed rails have noticed China’s designs on the European market. “China is about to rise to a true global competitor,” said Alexander Machowetz, a spokesman for Siemens Industry Sector in Germany.

    Machowetz said Siemens “acknowledges the ambitious goals of the Chinese manufacturers in the international markets”, but he also said his company has been “very successful” as a supplier of high-speed rail technology in the Chinese market over the past few years.

    “International competition and cooperation in project-based partnerships” are common in railway projects, he said, but “Siemens has proven its ability to cope with competition of any kind”.

    Hiring locally

    Construction of Phase 2 began in 2008, but China Civil Engineering started its preparation as early as 2004 to win the bid for the project. Thirty companies, including some from Japan, South Korea and Europe, formed eight partnerships in the competition.

    China Civil Engineering’s partnership, with China National Machinery Import & Export Corp and two Turkish companies, Cengiz and IC Ictas, won the bid in December 2005. The contract was signed in July 2006.

    A total of $1.27 billion was raised from both countries. China contributed $720 million in loans.

    Now more than 1,000 laborers, technicians and support staff are working on the project. Just over 40 are from China, Zheng said. “We hope in the future to have only a few senior Chinese administrative staff here, leaving all other jobs to local people.”

    Talking about its future here, Zheng said the company is in discussion with Turkey about building a 2,000-km high-speed railway linking the border towns Edirne in the northwest, close to Bulgaria and Greece, and Kars in the northeast, near Georgia and Armenia.

    “We are discussing with them. We want to cut the project into different phases and construct them one by one,” he said.

    Turkish State Railways, which is in charge of the country’s HSR development, had not responded by deadline to a China Daily interview request on whether China would get more projects.

    But according to the agency, Turkey plans to construct some 6,000 km of high-speed railway by 2023, the country’s 100th anniversary.

    The Ankara-Istanbul line is the country’s first high-speed line. Phase 1, which runs more than 200 km from Ankara west to Eskisehir, was built by a Spanish company and opened in early 2009.

    When the entire line opens, travel time between Ankara and Istanbul, the country’s two largest cities, will shorten from seven hours to less than four.

    Sino-Turkish ties

    “HSR is just a beginning for further economic cooperation” between Turkey and China, said Selcuk Colakoglu, director of Asia-Pacific Studies at Ankara-based International Strategic Research Organization.

    “Turkey has transformed itself from a security state to a trading state during the past decade. If you want to be a trading state, you should have a very developed transportation link.” Colakoglu added that building HSR links throughout Turkey is “very important for a sustainable rapid development”.

    China’s support in Turkey’s high-speed rail would be “beneficial for both Beijing and Ankara”, he said. “China seems a best alternative to build HSR with high-tech and reasonable cost, including financial support. I believe that some other strategic cooperation would follow construction of HSR.”

    Xiao Junzheng, political counselor at the Chinese Embassy in Ankara, said the $1.27 billion Phase 2 of the Ankara-Istanbul high-speed line is the two countries’ biggest cooperative construction project.

    “The project has enhanced the confidence of the Turkish government and market in Chinese technology,” Xiao said.

    He said the project will not only deepen Sino-Turkish economic cooperation, but also will bring “significant” benefits to Turkey’s economic development. For example, Xiao said, the number of rail passengers between Ankara and Istanbul is expected to rise from 4,000 daily to 25,000 when the high-speed railway opens.

    When asked if China would aim at more HSR projects in Turkey, Xiao said, “The Turkish market is a very big one, so it is not possible for it to be dominated by any single country or company. Also, the investment would be really big.

    “China is just a latecomer in the construction market here,” he said. “South Korea, Japan and Russia are all more active. But I believe Chinese companies can stand firm in Turkey’s construction contract market with their technology strength and good credit.”

    Stefaan Van Kerchove contributed to this report from Brussels.

     

    (China Daily 07/16/2011 page12)

  • Buying gold? Try Istanbul’s Grand Bazaar

    Buying gold? Try Istanbul’s Grand Bazaar

    In these austere economic times, many have sought refuge for their savings in gold.

    Gold rose to record highs last week but it’s not just on the financial markets where people are looking to protect their wealth.

    In Istanbul’s Grand Bazaar, traders have been buying and selling gold since 1461, the early days of the Ottoman Empire. Its shops attract between 250,000 and half a million visitors annually.

    One Moroccan tourist on a visit to the market told euronews the quality of gold varies from one store to another, but the prices are usually good. “Nevertheless, I always negotiate,” he said.

    An estimated 22 billion euros worth of gold is traded at the Grand Bazaar each year.

    Bora Bayraktar, Euronews’ correspondent in Istanbul said “Grand Bazaar is one of the important places where gold has been exchanged for 550 years. Even today, daily 2.5 tonnes of junk gold is brought here for processing.”

    Copyright © 2011 euronews

    via Buying gold? Try Istanbul’s Grand Bazaar | euronews, world news.

  • Turkish armored vehicle exports soar

    Turkish armored vehicle exports soar

    ANKARA, Turkey, July 15 (UPI) — Turkish exports of armored vehicles are expanding, including purchases by the United States for the first time.

    A Turkish military senior procurement official involved with supporting Turkish arms exports, speaking on condition of anonymity, told Hurriyet that Turkish armored vehicle manufacturers are expanding beyond their traditional Middle Eastern markets.

    “We are happy to see these companies now chasing deals in parts of the Far East they have not yet sold their products to, and there are initial signs of penetration into difficult markets like the U.S.,” he said “All of that is very encouraging.”

    Turkey’s Defense Industry Manufacturers Association Secretary-General Kaya Yazgan told Hurriyet, “The making of armored vehicles is one of the strongest sectors in our defense industry.”

    Istanbul’s Otokar, which is owned by Turkey’s top business conglomerate Koc Holding, produces seven armored vehicle variants and its 2010 sales to civilian and military clients topped $313 million.

    In May Otokar displayed Turkey’s first indigenously built tank, the Altay, at the IDEF’11 international defense industry fair in Istanbul.

    Head of Turkey’s Undersecretariat for Defense Industry Murad Bayar said Altay tanks would be entirely built in Turkey, with Turkish defense industry company Aselsan. It will build the Altay’s electronic systems, providing Identification Friend-or-Foe systems.

    Otokar officials say that Altay tanks will be ready for sale by 2016.

    Otokar exports products to the armed forces of nearly 20 countries.

    Last December Otokar said that it had received its first order from a foreign military for its ARMA new armored combat vehicle, which comes as either a 6×6 or 8×8 wheeled armored vehicle.

    The company added that the ARMA, a modular multi-wheel configuration wheeled armored vehicle, would be exported before making its debut in the Turkish military. The amphibian vehicle weighs 20 tons fully loaded for combat and has a crew consisting of a driver, a commander and eight personnel. ARMA is transportable by various means including C130 aircraft.

    Otokar also builds the Cobra, a 4×4 vehicle, which comes in 10 models designed for different missions. Otokar has sold Cobras to more than 10 other countries and the vehicle has been utilized in a variety of both NATO and U.N. missions.

    “There is increasing demand for the Cobra from an increasing number of countries,” Otokar said in a news release.

    In 2009 Turkey’s total arms exports amounted to $832 million. Other leading Turkish arms manufacturing companies include Hiscar Automotive Industries, Ankara’s FNSS, which is 51 percent owned by Turkish business group Nurol and Izmir’s BMC, which is owned by the Cukurova Holding industrial conglomerate.

    via Turkish armored vehicle exports soar – UPI.com.

  • Mixed-Use Zorlu Center Raises Stakes in Istanbul

    Mixed-Use Zorlu Center Raises Stakes in Istanbul

    By JON GORVETT

    Published: July 14, 2011

    15iht reistanbul articleLarge

    Zorlu Property

    A rendering of the Zorlu Center, a mixed-use extravaganza rising in Zincirlikuyu, on the city’s European shores.

    ISTANBUL — While Istanbul is often described as a city of contradictions — somehow growing both more Western and more Eastern, more open and more closed — only a few real estate projects have seized on these contrasts as the foundation of a development philosophy.

    One that has is the Zorlu Center, a mixed-use extravaganza rising in Zincirlikuyu, on the city’s European shores. This four-tower, five-function and two-theater project aims to provide the city’s most luxurious apartments as well as entertainment for people without a lira to spend.

    The Center, scheduled to open by the end of next year, also illustrates the continued dynamism of Istanbul’s high-end real estate market — and of Turkey’s robust economy, scarcely affected by the global downturn that has flattened its neighbor, Greece.

    The Center site, which totals 102,000 square meters, or almost 1.1 million square feet, was bought in 2007 for $800 million by Zorlu Property, part of the Zorlu Group, now one of the largest conglomerates in Turkey and in Europe. When the project is complete, Zorlu Property says, the company will have invested more than $2.5 billion. (In Turkey, top-end real estate generally is priced in U.S. dollars.)

    The residential units in the Center, which will vary from 117 square meters to 733 square meters, are selling at $9,500 to $18,000 per square meter, depending on the type of apartment and the view, although the developers think demand will push prices for the best units to $20,000 per square meter by the time the apartments are ready for occupancy at the end of 2012.

    If the prediction is accurate, that would put the Center’s top prices at the low end of the world’s most expensive residential range. Knight Frank real estate said that, for January 2011, luxury prices in Hong Kong were $30,677 per square meter; in London, $26,328; and in New York, $22,614.

    The development seems to be affecting surrounding areas, too. Data from Colliers International real estate brokers show that districts around the Center now command $7,500 to $10,000 per square meter in next-door Etiler and around $6,000 per square meter in nearby Levent.

    “Until recently, we’ve all been wondering how far up prices could go,” said Mehmet Even, an assistant general manager at Zorlu Property. “Istanbul has been basically a wealthy place for hundreds of years, although admittedly, the last century has been a bit quiet. Now, though, it’s definitely taking off again.”

    The project, so far advertised only by word of mouth and its towers’ growing outlines on the city skyline, has sold 30 percent of its residential units since pre-construction sales began in October 2010.

    Location, of course, is everything. Zincirlikuyu is a place where a jumble of highways from Asia and Europe intersect, before heading off again into the central business district, the upmarket residential region of Etiler and the older commercial and residential venues of Nisantasi, Taksim and Besiktas.

    “What we’re trying to do here is create a private place that is also very much a public part of Istanbul,” said Mehmet Emre Zorlu, a board member of Zorlu Property Group who, born in 1984, also is a good example of the growing number of youthful businesspeople in this ancient city.

    To achieve that goal, the architects Emre Arolat and Murat Tabanlioglu — the Turkish winners of an international competition for the design — have created a south-facing terrace overlooking the Bosporus, partly as a level surface for construction and partly as a public gathering area. On this terrace, “we have a hard shell that evolves into a soft and green hill,” Mr. Arolat said.

    Four towers rise from the terrace, including the residential development, a $175 million Raffles Hotel and spa, and around 22,000 square meters of office space. There also will be a shopping center, with parking and access roads created below ground level at a cost of $100 million.

    via Mixed-Use Zorlu Center Raises Stakes in Istanbul – NYTimes.com.

  • Looking at REX’s Vakko Fashion Center in Istanbul

    Looking at REX’s Vakko Fashion Center in Istanbul

    Structure: Vakko Fashion Center and Power Media Center

    Architect: REX Architecture, the Manhattan-based firm of Joshua Prince-Ramus — former partner of architecture star Rem Koolhaas at his Office for Metropolitan Architecture.

    Clients: Vakko and Power Media

    Location: Istanbul, Turkey

    VAKKO 06 Credit Iwan Baan

    History: Cem Hakko, CEO of Vakko and Power Media, hired REX to build the company headquarters in 2008, when he was visiting New York for fashion week. Hakko told the firm that it had about a year to complete the project. Taking an adaptive reuse approach, the group applied plans for a canceled project at the California Institute of Technology to an abandoned skeleton in Istanbul — an unfinished hotel that had been unoccupied for 20 years. Coincidentally, the U-shaped skeleton of the site matched the dimensions of the canceled project, which sped up the process. Caltech’s loss became Vakko and Power Media’s gain, allowing for construction to begin a staggering four days after the commission was finalized in February 2008. By March 2009, REX had fulfilled Hakko’s wishes: most of the structure was complete. Vakko held the building’s opening ceremony in January 2010, and the building took its place as one of the gems of contemporary architecture in Istanbul.

    Cost: Confidential

    Purpose: To serve as headquarters of Vakko, a luxury Turkish fashion retailer that creates womenswear, menswear, shoes, and more, as well as for Power Media, tantamount to Turkey’s MTV.

    Features: The Vakko Fashion and Power Media Center — winner of the 2011 Wallpaper magazine Design Award for Best Workspace — is actually two structurally independent components. It is comprised of a three-story, rectangular doughnut-shaped building, dubbed “the Ring,” that holds regular office space. This surrounds a taller, six-floor tower made from a stack of angled steel boxes, called “the Showcase,” which houses executive offices, showrooms, an auditorium, and meeting rooms. Prince-Ramus repurposed the subterranean spaces originally intended to function as hotel’s parking lot into radio and television studios for Power Media.

    The structures’ two different surfaces make for an interesting contrast. The glass façade on the Ring consists of window panes slumped with structural Xs to increase strength, while the exterior of the Showcase is made of mirror-glass, giving its interior a kaleidoscope effect.

    via Looking at REX’s Vakko Fashion Center in Istanbul – ARTINFO.com.

  • Best Workspace: Vakko Fashion And Power Media Centre, Istanbul, By REX

    Best Workspace: Vakko Fashion And Power Media Centre, Istanbul, By REX

    Best Workspace: Vakko Fashion and Power Media Centre, Istanbul, by REX

    Architecture

    Built in just a few months, wallpaper.com follows how, using 
a half-built hotel structure, as well as the cleverly adapted plans of a cancelled US commission, the new Istanbul HQ of Turkish fashion house Vakko takes shape. The centre was designed by New York practice REX, led by Joshua Prince-Ramus, who sought to merge the disparate functions of Vakko’s fashion business together with Vakko CEO 
Cem Hakko’s ventures into youth media, collectively known as The Power Group. The solution is almost two buildings in one. REX placed TV and radio studios for Power in the original underground car park, beneath a stack of angled steel boxes housing meeting rooms, showrooms and an auditorium. This forms a centrepiece in the core of the building’s outer concrete ring, which itself contains offices. Meanwhile, 
the ground floor, hidden beneath the entrance drive, houses a space where the Vakko fashionistas can eat and socialise with the Power media crowd. Constructing a vast project like this to such a wildly unrealistic time frame would normally be unthinkable, if not impossible. Yet, inside the cool, calm offices and stacked, mirror-clad rooms that form its prismatic heart, Vakko has an HQ that really cuts it.  www.rex-ny.com

    via Best Workspace: Vakko Fashion And Power Media Centre, Istanbul, By REX | Architecture | Wallpaper* Magazine.