Category: Business

  • Canal Istanbul detailed

    Canal Istanbul detailed

    Istanbul Mayor Kadir Topbas said the new shipping canal proposed by Turkey would handle 150-160 ships per day, IHS World Markets Energy reported.

    The waterway, proposed as an alternate to the cramped Bosporus, would take eight years to build for an estimated US$10 billion, Topbas added.

    The Canal Istanbul scheme to link the Black Sea with the Sea of Marmara was unveiled yesterday by Prime Minister Recep Tayyip Erdogan.

    Ships would still need to transit the Dardanelles to reach the Aegean Sea.

    As IHS Fairplay reported recently, the canal would run 45-50km in length, with a depth of about 25m and a width of 150m, added Erdogan, who said it would accommodate ships up to 300,000dwt.

    It would cut through government-owned land – mostly undeveloped forest – just west of Istanbul, reported the Wall Street Journal, which added that backers claim it would create thousands of jobs for workers at Turkish companies.

    “Erdogan’s unveiling of the plan, which has long been dreamed about by Turkish strategic thinkers, came across in large part as an election-season ploy, and the political opposition dismissed it as such, citing the cost and unrealistic nature

    of the still-half-baked proposal,” IHS World Markets Energy commented.

    The prime minister said today’s long waits to enter the Bosporus, which is just 700m wide at its narrowest point and has strong currents and several blind turns, cost shippers US$1.4 billionn per year.

    The scheme might be aimed at gaining leverage for Turkey in talks with Russia to secure commitments of crude for the as-yet-unbuilt Samsun-Ceyhan oil pipeline, one of a range of other Bosporus bypass pipeline proposals, IHS World Markets Energy said.

    If Canal Istanbul is built, “the rationale for projects such as Samsun-Ceyhan and the

    Burgas-Alexandroupolis pipeline linking Bulgaria to Greece could be undermined”, it pointed out, however adding: “Rising levels of oil exports from Kazakhstan and Russia could still necessitate construction of pipelines to bypass the Bosporus if Turkish officials intend to divert all oil traffic away from [it], as Erdogan insinuated yesterday.”

    via Canal Istanbul detailed – Dredging News Online.

  • Turkey’s Universal Hospital Chain to Get $140 Million Investment

    Turkey’s Universal Hospital Chain to Get $140 Million Investment

    By Ercan Ersoy

    Asia Debt Management Capital of Hong Kong, PGGM NV and the World Bank’s International Finance Corp. agreed to invest $140 million for a 26 percent stake in Turkish hospital chain Universal Saglik Yatirimlari Holding AS.

    Universal, which runs 18 hospitals in 12 cities, will use the proceeds to invest in more sites in Turkey, especially in smaller towns, Chairman Azmi Ofluoglu said in an e-mailed statement from the four companies. They didn’t say how much of a stake each of the buyers will acquire. Istanbul-based Daruma Corporate Finance advised the seller in the deal, they said.

    Turkey’s economic growth is attracting investors in the country’s burgeoning health-care industry. The economy expanded 8.9 percent last year, the fastest pace since 2005, and may grow 4.6 percent this year, according to April 11 estimates from the Washington-based International Monetary Fund.

    Abraaj Capital Ltd., the Middle East’s biggest private equity firm, bought 54 percent of hospital operator Acibadem Saglik Hizmetleri & Ticaret AS for about $606 million in 2007 and 2008. Carlyle Group, the world’s second-biggest private equity firm, bought 40 percent of hospital operator Medical Park Saglik Grubu AS for an undisclosed price in 2009. Argus Capital Partners and Qatar First Investment Bank last year purchased 40 percent of hospital chain Memorial Health Group.

    To contact the reporter on this story: Ercan Ersoy in Istanbul at eersoy@bloomberg.net

    To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

    via Turkey’s Universal Hospital Chain to Get $140 Million Investment – Bloomberg.

  • Turkey to export armored vehicle

    Turkey to export armored vehicle

    ISTANBUL, Turkey, May 4 (UPI) — Turkish armored vehicle maker Otokar plans to export eight-wheeled armored vehicles it has just developed, the newspaper Hurriyet Daily News reported.

    “The Turkish armed forces needs no such vehicles in the very short term,” Serdar Gorguc, the Otokar general manager said.” On the other hand, many militaries in the world are in need of such vehicles, so we are in this business.”

    Otokar plans to display its Arma 8×8 at an international defense fair next week in Istanbul, Turkey.

    The Arma is an amphibious tactical wheeled armored vehicle with a high degree of ballistic and mine protection.

    Otokar said the Arma 8×8 will be competing with rivals for contracts in at least two countries in the next two months but the countries weren’t identified.

    Otokar is owned by Turkey’s top business conglomerate, Koc Holding and produces a family of seven armored vehicles.

    Last December it signed contracts worth $9.3 million for exports of several vehicle types and a contract worth more than $10 million for the first export of its Arma 6×6 vehicles.

    Under a $500 million contract, Otokar and its partners have been tasked to deliver four prototypes for a new generation tank by 2015. In agreement with South Korea’s Hyundai Rotem, Otokar is obtaining technology transfer from the company that produced South Korea’s K1 and K2 main battle tanks.

    via Turkey to export armored vehicle – UPI.com.

  • Karsan, From Turkey, Is Rejected as New York Taxi

    Karsan, From Turkey, Is Rejected as New York Taxi

    The Karsan van, with a retractable wheelchair ramp, got a lot of support in Brooklyn when the company promised to build a factory in Sunset Park.

    By MICHAEL M. GRYNBAUM

    The Karsan V1, an oblong Turkish van vying to become the exclusive vehicle of the New York City taxi fleet, has features that would make a Crown Victoria weep: London-style jump seats; a moon roof for panoramic views; even a pledge to build the cars in Brooklyn. (The Crown Vic, the fleet’s old mainstay, was made in Canada.)

    “How can we possibly reject this proposal?” Marty Markowitz, the Brooklyn borough president, said at a rally he organized on Sunday to support the van.

    The Bloomberg administration is set to present a few reasons why.

    The Karsan van has been rejected by the Taxi and Limousine Commission, according to a city official who has been informed of the decision, and who insisted on anonymity because it had not been made public. The rejection came after a review raised concerns about whether the Turkish company, untested in the American market, could reliably execute the high-concept product it had designed.

    That leaves the city’s Taxi of Tomorrow competition — which will award a contract for the next decade’s yellow cabs — with two contenders. Both finalists were submitted by more established automakers and are less aesthetically distinct: the Ford Transit Connect and the Nissan NV200 vans. Mayor Michael R. Bloomberg is expected to announce the selection this week.

    Karsan’s bid attracted far more attention than its competitors’, earning international headlines as a stylish new look for the traditional New York cab. Its makers hired Rubenstein Associates, the public relations firm, to supervise a media campaign, and the vehicle attracted strong support by advocates for the disabled because of its retractable wheelchair ramp.

    But an analysis commissioned by the city concluded that Karsan would present the “highest risk” to the taxi industry if chosen for the 10-year contract. The report, prepared by an automotive consultant, Ricardo Inc., put it bluntly: While Karsan had demonstrated “the will and technical capability” to build its proposed taxi, the company was “a new manufacturer, with a new manufacturing paradigm, not familiar with the U.S. regulatory framework, with no current sales, service or support infrastructure” in the United States, according to the report, excerpts of which were obtained by The New York Times.

    The consultant appeared concerned about whether Karsan, which has rarely tried to design and build a new vehicle from scratch, had “fully evaluated the risks and countermeasures required to ensure that their product will deliver and maintain the same level of maturity as that of their competitors over the life of the contract.”

    Jan Nahum, the executive director of Karsan, said in a statement that he was shocked that he had not been directly notified of the decision, and he described the premature release of the report as inappropriate. “Furthermore,” he added, “we were unaware of any such report, and the concerns reportedly raised in it have never been expressed to us.”

    Karsan said last month that it was prepared to build a plant in Sunset Park, potentially creating hundreds of jobs. The announcement was hailed by some city politicians, including several who spoke at Mr. Markowitz’s event outside Brooklyn Borough Hall on Sunday.

    “Imagine the rebirth of solid, union, middle-income jobs,” Mr. Markowitz said. And Julie Kushner, a United Auto Workers director who also spoke at the rally, said Karsan’s selection would “represent the first auto assembly jobs in the city for decades.”

    While Karsan has been eliminated, city officials are said to have encountered drawbacks in all three finalists.

    Ford’s submission, for its existing Transit Connect van, was viewed early on as problematic and uninspired, and some taxi officials were taken aback to see the city include the car as a finalist.

    At one point, the Ford entry was considered “a fallback” that could be picked if other, more exciting options did not pan out, according to two individuals with direct knowledge of the city’s deliberations who requested anonymity because the discussions were supposed to be private.

    City Hall officials would not comment on internal deliberations. But Mayor Bloomberg appeared to allude to Karsan’s perceived problems on his radio program last week.

    “You’ve got to look at how much experience companies have had in building cars,” he said on Friday.

    Juliet Linderman contributed reporting.

    A version of this article appeared in print on May 2, 2011, on page A20 of the New York edition with the headline: In Contest for New York’s New Taxis, Turkish Entry, the Karsan, Is Rejected.

    via Karsan, From Turkey, Is Rejected as New York Taxi – NYTimes.com.

  • Turkey at Heart of New ‘Not-Quite-BRIC’ Index

    Turkey at Heart of New ‘Not-Quite-BRIC’ Index

    By Joe Parkinson

    A few months back, economists were openly debating whether fast-growing Turkey should be elevated into the elite club of ‘BRIC’ economies — Brazil, Russia, India and China — that are slated to dominate global growth over the next decades.

    Aside from the fact that it would have made the acronym less catchy (think BRICT or TRIBC) investor concerns over Turkey’s rapidly widening current account deficit and Middle East turmoil conspired to put that debate on ice. But Turkey is considered a key player in the second-tier of emerging economic powerhouses: referred to by the lesser known, and, alas, more forgettable acronym CIVETS.

    Turkey, Columbia, Indonesia, Vietnam, South Africa and Egypt — all large, but not continental size economies with young populations — have been attracting waves of foreign investment. These economies are expanding robustly, are not overly reliant on natural resources and — with the exception of Egypt — possess relative political stability.

    Conscious of the potential of these economies and undeterred by the clunky acronym, Standard & Poor’s on Tuesday launched the CIVETS 60 index — comprised of 10 stocks from each economy. Unsurprisingly, Turkey’s top 10 is dominated by the country’s banking giants — tightly regulated firms that have won plaudits for weathering the financial crisis in rude health. Also present are the country’s two biggest holding companies — Sabanci and Koc — and Turkcell, the dominant telecom firm.

    Standard & Poor’s Michael Orzano, associate director of global equity indices, says the index has been created to reflect CIVETS economies becoming “increasingly important” to international investors.

    Turkish stocks make up 21% of the weighted index, slightly trailing South Africa and Indonesia but a significantly higher percentage than Columbia, Vietnam and Egypt. Turkey-watchers say the index is likely to become an important tool to track Turkey’s performance relative to congruent economies in other regions. Economists note that Turkey’s neighborhood — plagued by euro-zone debt woes and Middle East political crises — could make it tougher to maintain rapid growth than other CIVETS, with the exception of Egypt.

    But if Turkey does manage to maintain robust growth and preserve financial stability, it may not be long before the discussion of whether Turkey deserves a promotion to the ‘BRIC’ premier league is back on the agenda.

    via Turkey at Heart of New ‘Not-Quite-BRIC’ Index – Emerging Europe Real Time – WSJ.

  • Huawei, Superonline implement WSON app in Istanbul

    Huawei, Superonline implement WSON app in Istanbul

    Huawei and Turkcell Group company Superonline implemented a directionless and colorless WSON (Wavelength Switched Optical Network) application in the Istanbul metro network.

    As the enhanced version of ASON (Automatically Switched Optical Network), WSON is based on the DWDM transmission network, having optical level switching capabilities.

    Designed and implemented by Superonline and Huawei through intensive engineering works, the Istanbul Metro WSON application is said to be the first successful commercial project of its kind with respect to realisation via upgrade over a live network that carries commercial services and its advanced optical switching technology (independent of direction and wavelength).

    In essence, WSON technology enables the uninterrupted flow of traffic to be transferred to alternative lines in case of multiple system failures and/or intersystem fibre cuts, which may occur in DWDM networks. This is due to the smart signalisation established by WSON between the applied network’s systems.

    via Huawei, Superonline implement WSON app in Istanbul (Turkey).