1. Prof. Dr. Tunçdan Baltacıoğlu Izmir University of Economics Turkey
CAN THE LOGISTICS RELATIONS BETWEEN HUNGARY AND TURKEY BE STRENGTHEN ON THE BASIS OF TRADE RELATIONS?
Prof. Dr. Tunçdan Baltacıoğlu
Izmir University of Economics
Turkey

2. Major Global Trade Routes 1400-1800
Baltic
Western
Europe
Central Asia
North America
China
Hormuz
Mexico
Havana
India
Canton
Pacific
Ocean
West Africa
Aden
Caribbean
Manila
Pacific
Ocean
East Africa
Aceh
Malacca
Indian
Ocean
Southeast Asia
Peru
Brazil
Atlantic
Ocean
Source: Presentation by Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, Hempstead, NY, USA. ( )
Trade Route
Dominant Capital Flow

3. Changes in Global Trade Flows
Before 1970
After 1970
Developed Countries
Developed Countries
Source: Presentation by Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, Hempstead, NY, USA. ( )
Developing Countries
Developing Countries
Industrial Pole
Flows of merchandises
Flows of raw materials

4. Economic Integration and Interdependencies
Interdependent Groups
of Nations
Independent Nations G1 a a h h b b g g
Source: Presentation by Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, Hempstead, NY, USA. ( ) c f d d c e f e G2

5. Impacts of Integration Processes on Networks and Flows
Before Integration
After Integration
International border
Network
Source: Presentation by Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, Hempstead, NY, USA. ( )
Flows

6. Major Economic Blocks, 2000
Source: Presentation by Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, Hempstead, NY, USA. ( )
The Andean Community of Nations (in Spanish: Comunidad Andina de Naciones, abbreviated CAN) is a trade bloc comprising the South American countries of Bolivia, Colombia, Ecuador, Peru and Venezuela (which is in the process of leaving the bloc). The trade bloc was called the Andean Pact until 1996 and came into existence with the signing of the Cartagena Agreement in Its headquarters are located in Lima, Peru.
The Andean Community has 120 million inhabitants living in an area of 4,700,000 square kilometers, whose Gross Domestic Product amounted to US$745.3 billion in 2005, including Venezuela.

7. C:\Documents and Settings\oyurt\Desktop\eu_members_nov06_416.gif

8. International Trade and Transportation ChainsB
Origin
Trade barrier
Destination
Composition
Transport Chain
Decomposition
Source: Presentation by Jean-Paul Rodrigue, Dept. of Economics & Geography, Hofstra University, Hempstead, NY, USA. ( ) A B
Rail
Maritime
Road
Transshipment
Customs

9. LOGISTICS/SUPPLY CHAIN COMPETENCE
INTERNATIONAL TRADE
LOGISTICS/SUPPLY CHAIN COMPETENCE
1 Euro reduction in cost from supply chain efficiencies is equivalent to a 12 Euros increase in sales revenues...

10. Turkey as a “Landbridge” Between Europe and Asia
Addition of new EU member states will bring attendant challenges of increases in the congestion on railroads and motorways in Europe while connecting to the developing markets of the Far East and to the development of Trans European Networks (TEN) in connection with the Pan- European Network
There is likelihood for the role of Turkey to develop as an alternative route in coordination with the Pan-European Network – once considered in ancient times as the Silk Way Road
The importance of Turkey – at the intersection of the Asian and European transport corridors while holding similar custom regulations of the EU as a non-member of the union – is increasing due to these developments in global trade

11. HUNGARY as a “Critical Logistics Node in Europe and “Gate to the Balkans”
Hungary has an important logistical position due to having lots of transportation networks and 4 main Europen transportation corridors inside its boundaries
After being admitted as a full member in the Europen Union, Hungary becomes a gate to the Balkans
International firms logistics center in Hungary gives them a great advantage in terms of transportation cost for carrying the goods both to Western Europe or Asia via rail roads

13. Hungary as a “Critical Logistics Node” in Europe
The Convention regarding the Regime of Navigation on the Danube signed in Belgrade on 18 August 1948 is the international legal instrument governing navigation on the Danube. In order to execute the implementation of the “Danube River Regulation of Navigation”, a commission was constituted
In 2001 in the 59th Annual General Meeting of the Danube Commission, Turkey’s participation to this commission was admitted as an observer.
This observer status of Turkey in the commission is perceived as the first step in becoming a full member

14. Danube River and The Black Sea
Apart from being complementary water ways for navigation, Danube River and The Black Sea are related to each other in economical cooperation
Water/river transportation between Turkey and Hungary will be declined

15. COLLABORATION OPPORTUNITIES FOR TURKEY AND HUNGARY
Critical Logistics Node in Europe
Technological support
Member of EU
Similarly, it is aimed to raise the level of transportation infrastructure of Hungary to the required level of European Union until 2015
Turkey
Potential Logistics Center between Europe and Asia
Geographical advantage
Candidate member of EU
For becoming an important logistics center between Europe and Asia,Turkey is investing on logistical infrastructure

16. Questions?