Türkiye Transport and Logistics Sector: Market Outlook & Opportunities

Türkiye’s transport and logistics sector is poised for sustained growth, driven by strategic investments in infrastructure, technological advancements, and its pivotal role in global trade.

By Giulia Interesse

Growth in Türkiye’s transport and logistics sector has been driven by the country’s strategic geographic position connecting Europe, Asia, and the Middle East. Serving as a key transit hub and a major freight destination, the country’s transportation infrastructure is tasked to support increasing demands from urbanization, industrialization, and international trade.

With a population surpassing 84 million and significant inward migration to urban centers, the strain on existing infrastructure has intensified, particularly in major cities like Istanbul and Ankara. This has necessitated robust investments in intelligent transport systems (ITS), smart mobility solutions, and infrastructure modernization. Simultaneously, Türkiye’s Customs Union with the European Union (EU) has further propelled the alignment of its transportation networks with EU standards, creating opportunities for innovation and expansion.

As the government undertakes transformative projects, including the Grand Istanbul Tunnel and Canal Istanbul, Türkiye is not only addressing domestic needs but also positioning itself as a global logistics hub. These developments are unlocking significant opportunities for local and international stakeholders to contribute to and benefit from the nation’s ambitious vision for the future of transport and logistics.

Türkiye’s current transport landscape

Türkiye’s transportation network reflects both its economic ambitions and its role as a critical bridge between continents. While significant progress has been made in expanding infrastructure, the country continues to address challenges related to modernization and capacity to meet growing demands.

Infrastructure overview

The backbone of Türkiye’s transport system includes an extensive network of roads, railways, and maritime facilities, complemented by airports and logistical hubs. The road network spans over 28,000 kilometers of divided roads and 3,600 kilometers of highways. The government has outlined ambitious plans to increase these figures to 38,000 kilometers of divided roads and over 8,300 kilometers of highways by 2053, accommodating growing passenger and freight traffic.

Rail transport, a crucial pillar of Türkiye’s logistics system, has seen ongoing investments in high-speed and conventional rail lines. The current network, spanning approximately 13,100 kilometers, includes over 1,400 kilometers of high-speed lines and more than 11,600 kilometers of conventional rail. These lines are increasingly signalized and electrified, aiming for greater efficiency and safety.

On the maritime front, Türkiye’s extensive coastline is dotted with 219 operational ports. Plans to expand this to 255 ports by 2053 highlight the emphasis on maritime logistics, particularly for trade. Additionally, Türkiye is developing dry ports and multimodal transportation systems to facilitate seamless cargo movement and improve overall efficiency.

Economic impact

Türkiye’s transport infrastructure is pivotal to its trade-driven economy, particularly in its relationships with Europe. A significant portion of Türkiye’s foreign trade flows through its transportation networks, making infrastructure alignment with EU standards a priority. As part of its Customs Union obligations, Türkiye is modernizing its systems to meet EU regulations, enhancing trade competitiveness and fostering international collaboration.

The sector is also instrumental in supporting industrialization and urbanization. Major urban centers like Istanbul, Ankara, and Izmir are hubs for economic activity, requiring continuous infrastructure expansion to accommodate population growth and economic demands. This dual role as a transit hub and freight destination underscores the importance of Türkiye’s transport networks for domestic and international stakeholders.

Türkiye’s transport and logistics market overview

Türkiye’s transport and logistics sector has evolved significantly, driven by robust infrastructure development, government initiatives, and increasing trade volumes.

Market segmentation

The transport and logistics sector in Türkiye can be segmented based on transportation mode, service type, and region.

By transport mode, the market can be divided into:

• Road transport: In 2023, road transport dominated the sector, benefiting from an extensive road network that supports both domestic and international trade.
• Air transport: Essential for high-value, time-sensitive shipments, air transport is the second-largest segment, with steady growth driven by e-commerce and global trade.
• Sea transport: A crucial component for bulk goods and international trade, Türkiye’s maritime sector is supported by expanding port infrastructure.
• Rail transport: While smaller in scale, rail transport is gaining momentum with increased investments in electrification, signalization, and network expansion.

By service type:

• Freight forwarding: Leading the market due to its critical role in managing complex supply chains and international shipments.
• Warehousing: Driven by the growth of e-commerce, warehousing supports inventory management and storage.
• Value-added services: Packaging, labeling, and other tailored services are increasingly in demand as businesses seek enhanced customer satisfaction.
• Distribution: Efficient last-mile delivery remains a priority, particularly in urban areas where e-commerce is booming.

Looking at the market segmentation from a regional perspective, the northern region, including Istanbul, leads the market with its strategic location and advanced infrastructure. Other regions, such as the south, east, and west, are gradually catching up with ongoing infrastructure improvements and increased trade activities.

Competitive landscape

The logistics sector in Türkiye is highly competitive, with several key players making strategic moves to enhance their market presence:

• Borusan Logistics partnered with a leading e-commerce company in 2023 to improve last-mile delivery, leveraging the e-commerce boom to increase its market share by 5 percent.
• Ekol Logistics launched a digital platform integrating AI and blockchain technologies, achieving US$10 million in annual cost savings and improving operational transparency.
• Netlog Logistics invested US$200 million to expand its fleet with 500 advanced trucks, boosting its capacity by 20 percent and improving fuel efficiency.

Growth drivers and trends

Türkiye’s strategic location at the crossroads of Europe and Asia has positioned it as a key player in global trade. This central role is particularly significant with its participation in major initiatives like the Belt and Road Initiative (BRI). In 2024, the country saw goods worth US$200 billion transit through its borders, underscoring its importance as a vital trade corridor between continents. This geographical advantage, combined with its expanding infrastructure and trade agreements, makes Türkiye a critical link in international supply chains.

The e-commerce sector in Türkiye has witnessed remarkable growth, with sales surpassing US$40 billion in 2024. This surge has significantly boosted the demand for advanced logistics solutions. As consumers increasingly expect faster and more reliable delivery services, companies are investing heavily in last-mile delivery infrastructure, urban warehouses, and micro-fulfillment centers. These investments are not only addressing immediate consumer needs but are also paving the way for a more agile and responsive logistics network.

In line with this growth, the Turkish government has allocated US$15 billion in 2024 for infrastructure improvements, focusing on roads, railways, and ports. These projects aim to enhance connectivity across the country, reduce transportation costs, and improve the overall efficiency of logistics operations. By streamlining the movement of goods, Türkiye is strengthening its position as a key logistics hub in the region.

Sustainability is also becoming a major focus in Türkiye’s logistics sector. The Green Logistics Initiative, which promotes the adoption of electric and hybrid vehicles, is one of the steps being taken to reduce carbon emissions and mitigate environmental impact. By 2028, sustainability is expected to play an even more significant role in shaping the future of the logistics industry, as both government and private sector stakeholders strive to meet growing environmental expectations.

Finally, the adoption of emerging technologies such as blockchain, artificial intelligence (AI), and automation is expected to further transform Türkiye’s logistics landscape. Blockchain technology is set to enhance transparency and security in supply chains, while AI and automation are poised to improve operational efficiency. Together, these innovations are shaping a more resilient, efficient, and sustainable logistics sector that is well-equipped to meet the challenges of the future.

Market outlook and opportunities

Looking ahead, Türkiye’s transport and logistics market is poised for sustained growth, driven by a combination of increasing trade volumes, technological advancements, and strategic investments in infrastructure. The country’s strategic location, with its position as a bridge between Europe and Asia, continues to solidify its role as a key player in global trade.

By 2028, Türkiye’s logistics sector is projected to double its capacity, enhancing its status as a global logistics powerhouse. The expansion of intermodal transportation, alongside the growth of urban logistics solutions, will further strengthen the sector’s ability to meet rising demand and improve operational efficiency.

Despite these promising prospects, the sector faces several challenges. The high cost of fuel, which surged in 2023, has significantly impacted operational expenses, adding pressure on companies already grappling with inflation and fluctuating exchange rates. Moreover, regulatory complexities, coupled with a shortage of skilled labor, remain significant obstacles to the sector’s growth.

However, the Turkish government is actively addressing these issues through proactive initiatives. The National Logistics Master Plan, introduced in 2023, allocated US$50 billion for the development of critical infrastructure, including new logistics centers, improved rail connectivity, and modernized ports. By streamlining customs processes and promoting sustainable logistics practices, Türkiye is well-positioned to enhance its competitive edge on the global stage. With these investments, the country’s transport and logistics sector is set to thrive, creating ample opportunities for businesses while mitigating existing challenges.

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