june 2011 no : 11 / 338

Arkas opens a new office in Tbilisi

Arkas Georgia employees at the Tbilisi office Operations are now underway at the second office of Arkas Georgia in Tbilisi. This office, which officially opened on May 17th, will expand Arkas’ service area in the Caucasus.

Established in order to strengthen Arkas Line’s position in freight transport in the Black Sea and the Caucasus, Arkas Georgia has opened a new office in Tbilisi. As the capital of Georgia, Tbilisi is the only port of entry to the Caucasus from the Black Sea making it a national trade and logistics center. Arkas Georgia chose Tbilisi in order to be close to local forwarders and Georgian importers and exporters, which are mostly located in Tbilisi, and will handle agency services for Arkas Line here just as it does in the Poti office.Products such as grain, food, cigarettes, construction materials, machinery, spare parts, used cars and furniture are sent to Georgia and the Caucasus and exports to the world from the Caucasus Region include iron ore, aluminum, copper, fertilizer, wine, mineral water and hazelnuts. Arkas Georgia will provide fast, on-site service to customers conducting trade between Turkey and George thanks to the Tbilisi office.

Arkas has offices in 15 countries on the Black Sea and Mediterranean and has raised the number of its offices overseas to 46 with the commissioning of the Tbilisi office.

Tiflis: 24 Mtskheta Street 0179 Georgia

Tel: 995 32 913 404 Fax: 995 32 913 747 tbilisi@arkas-georgia.com

Arkas Anadolu Logistics provides combined transportation to

Iraq

Arkas Anadolu Logistics integrates various transportation modes in order to serve customers who export to Iraq with low-cost solutions.

Arkas Anadolu Logistics integrates various transportation modes, namely “sea (cabotage transportation) – rail” and “highway – rail for transportations to Iraq. Arkas Anadolu Logistics performs cabotage transportation with vessels operated by Arkas Line from ports in Istanbul, Kocaeli, Bursa and Izmir and then ships the freight, which is unloaded at the Port of Mersin, overland to Iraq. In situations where sea transportation is not suitable, it

combines rail and highway to provide alternative solutions. Freight is shipped by rail as far as Gaziantep and from there to Iraq via highway. Most of the shipments from Turkey to Iraq involve fast moving consumer goods, food and construction materials.

Arkas Anadolu Logistics provides reliable door-to-door transportation services to exporters doing business with Iraq at affordable rates. Arkas Anadolu Logistics also ships transit freight. As the Port of Mersin is the most suitable point of entry for trade between Iraq and America/Europe, it transports freight that arrives there on to Iraq.

Arkas Line agencies meet in Istanbul

Western and Eastern Mediterranean agents Arkas Line representatives in the Mediterranean and Black Sea meet in Istanbul for the agency meeting held annually. Goals for 2011 were reviewed at the meeting.

The meeting held in Istanbul was attended by 120 representatives of Arkas Line agencies in the “Western and Eastern Mediterranean” and the “Black Sea.” Officers from Arkas Shipping branches in Izmir, Istanbul, Bursa and Mersin were also present at the meeting with agencies from Greece, Italy, France, Spain, Algeria, Morocco, Egypt, Lebanon, Syria, Tunisia, Bulgaria, Romania, Ukraine, Russia, Georgia and Germany.

Cooperation and synergy with agencies is critical to improving existing lines and developing new projects. Therefore, the purpose of these regularly held meetings is to strengthen communication between agencies.

Decisions regarding quality enhancement were made at the last meeting and the importance of investing in special equipment, such as reefer and open top containers, in order to satisfy customer needs was emphasized. The next agency meeting is planned for the month of September.

Arkas Line offers regular line transportation in the Mediterranean and Black Sea, and with the investments being made in equipment and vessels, it aims to strengthen its position in the region and improve customer satisfaction.

Black Sea agents

A 6,700 m2 warehouse for Kayseri from Arkas Anadolu Logistics

Kayseri warehouse

The bonded section of Arkas Anadolu Logistics’ bonded and non-bonded warehouse with 6,700 m2 of indoor space in the developing Anatolian city of Kayseri was commissioned on June 1st.

Arkas Anadolu Logistics General Manager Mustafa Çiper and Arkas Regional Coordinator and Vice President of the Logistics Group Gürkan Barutoğlu visited Kayseri Chamber of Industry (KAYSO) Chairman of the Board Mustafa Boydak in his office on Wednesday, May 11th because the warehouse in Kayseri was going to commence operations. In his remarks here, Arkas Anadolu Logistics General Manager Mustafa Çiper said that work on the bonded and non-bonded warehouse with 6,700 m2 of indoor space on 17,000 square meters had been completed with support from the Kayseri Chamber of Industry and that the bonded portion of the warehouse was commissioned on June 1st.

Çiper stated that the warehouse would greatly facilitate the work of importing industrialists saying, “This investment makes it possible to store imported goods in this bonded warehouse before taxes are paid and without a time restriction. We think that this will provide significant advantage in terms of current costs.” Arkas Regional Coordinator and Vice President of the Logistics Group Gürkan Barutoğlu, on the other hand, thanked Mustafa Boydak for his support and expressed his hope that the warehouse would be beneficial to the city of Kayseri.

KAYSO Chairman Mustafa Boydak stated that these storage facilities would provide industrialists with a tremendous advantage saying, “In order to do our job well, we must ensure that support services in that city are excellent. That is what we are doing. Our industrialists will receive affordably priced service here. With these services, we will witness the growth and development of Kayseri’s industry. We look forward to continued investment from Arkas and would like to express our gratitude to them.”

Russia’s door to the world: Novorossiysk

Monument Malaya Zemlya in Novorossiysk, south Russia

Located in the federal administrative district of Krasnodar Krai, Novorossiysk is an important port city.

For centuries the region has been known for its grain trade, and today Novorossiysk enjoys a strategic position at the junction where international transportation corridors meet and petroleum from Russia and Kazakhstan reaches the Black Sea.

Arkas vessel at the Novorossiyks port

Novorossiysk was a Greek colony specializing in the trade of grains in antiquity and then became a settlement for Genoese colonies in the 13th century. Beginning in 1722, the region was under Ottoman rule for a long time before passing to the Russians after the Russo-Turkish War (1828-1829).

The modern-day city of Novorossiysk was founded in 1838 as a Russian base for the deployment of the Russian Fleet in the Eastern Black Sea. The city had no transportation links to the interior of Russia, but development of the city occurred rapidly with the decision in 1882 to build a railroad tline would reach the port. The first cement factory in the region was opened the same year. The number of docks was increased and construction of the railroad was completed in 1888 allowing railway cars carrying petroleum and grain to reach the port.

Novorossiysk is also one of the 12 cities tline was declared a “hero city” for the heroism it exhibited in resistance to German forces during World War II from 1941-1945. Novorossiysk was damaged extensively, but was rebuilt and over time its population grew as industry developed. Industrial center

With a population of approximately 300,000, Novorossiysk is more of an industrial city than it is a coastal town for tourists. It is the heart of Russia's cement industry. Rich limestone mines support the cement industry in the city and surrounding areas. Other industrial fields include port operations, ship building and repair, steel, food, grain, metal products and light industry. As the country’s foremost port on the Black Sea, the city is connected to industrial and population centers via railroads and highways as well as to the TransCaucasus (Azerbaijan, Armenia and Georgia) and Central Asia. It is also the home base of the Black Sea Fleet of the Russian Navy. The importance of the pipeline to the regional economy

The Caspian Pipeline Consortium (CPC) transports Caspian petroleum from the Tengiz Region of Kazakhstan to the Black Sea near Novorossiysk. Petroleum from the regions of Kashagan and Karachaganak is also exported from here. Since 2004, Russian petroleum from Kropotkin in the Krasnodar Krai region has been included in the pipeline as well. Novorossiysk is the Black Sea port tline handles the most petroleum. The Caspian Pipeline Consortium’s project to increase capacity will double the amount of petroleum tline Novorossiysk receives. The capacity of crude oil tanks in the region and the CPC Sea Terminal will also be increased. The project is scheduled for completion in 2014 and is expected to make a significant contribution to the national and city economy.

On the other hand, Russia’s efforts to transport crude oil to the Pacific and China via the (ESPO) pipeline to meet demand in Asia are expected to have a negative effect on the city’s economy. By the end of 2014, one million barrels of oil a day will be transported from Siberia to China. This means tline 10% of the petroleum transported to Europe via ports and pipelines will be redirected to Asia. The strategic location of the port in Russia's foreign trade

The port of Novorossiysk handles about 30% of the country’s maritime foreign trade in its capacity as an import and export center. The port handles dry and liquid bulk cargo, general cargo and container cargo throughout the year as there is no ice in the winter months. The port has the best conditions in the Black Sea and the Sea of Azov in terms of geography, topography and infrastructure. The system of jetties and seawalls built in the port has minimized the time tline the port is inoperable and makes year-round navigation possible. The port is located at the juncture of international transportation corridors tline connect Russia with the Mediterranean, the Middle East, Africa, South and Southeast Asia, as well as North and South America. Cargo shipped from Southern and Central Russia, including the regions of Ural, Volga and Central Asia, are transported from here to different ports around the world.

Another important characteristic of this port is the fact tline it is the deepest in the Commonwealth of Independent States and the Baltic Region (maximum depth at petroleum docks is 24.5 meters, and 14.5 meters at bulk cargo, general cargo and container docks). Therefore, it is able to service large capacity vessels resulting in low freight charges. Storage facilities also provide an advantage in export for (freight on board) FOB delivery. Built on approximately 100 hectares, the port has 43 docks with a total length of 9.15 kilometers. It has 18.9 hectares of outdoor storage, 6.2 hectares of indoor storage and 0.416 hectares of cold storage.

Dock equipment includes 14 mobile cranes with capacities of 1 ton and 45 to 103 tons, 60 gantry cranes with capacity varying from 5-63 tons and one 5-tone overhead crane. In 2009, container traffic amounted to 234,800 TEU, but rose 100.8% in 2010 to 471,000 TEU (3.81 million tons). Even though there was a decline in other cargo compared to the previous year, the total amount of cargo handled, including container tonnage, was 81.6 million tons, of which 55.42 million tons was liquid, 11.8 million tons was bulk cargo and 10.56 million tons was general cargo.

Arkas services develop in parallel with customer requests

“Aurora” has been providing agency services in Novorossiysk since 2003, but in 2007, it joined Arkas and was restructured as Arkas Russia. Arkas Russia provides agency services for Arkas Line, Tarros and Hapag-Lloyd with 77 employees. It accepts import shipments tline arrive at the Port of Novorossiysk and delivers them to Russia and all of the nations in the Commonwealth of Independent States via rail and highway connections. Arlogic Russia, which began operations at the beginning of 2010, aims to expand and diversify its logistics service in Russia. Arkas acquired the PIL agency in Russia in 2011, and the company established as PIL Novorossiysk has commenced operations. Resources www.uk.finance.yahoo.com www.allbusiness.com www.encyclopedia.farlex.com www.businessweek.com www.nsma.ru www.nmtp.info www.cpc.ru www.wikipedia.com

Arkas Russia Novorossiyks office employees

Autoport – the only port for automobiles

Trade and Customer Relations Assistan Manager Ercan Poyraz attended to the conference (sağdan fourth from the right)

The first Turkish port to specialize in automobiles, Autoport attended a conference entitled “The Future of the Automotive Sector from Now Until 2023” organized by OYDER (The Association of Authorized Automobile Dealers).

The conference organized by OYDER on April 27th at the Lütfi Kırdar Convention and Exhibition Center was attended by Minister of Industry Nihat Ergün, Minister of State Zafer Çağlayan, President of the Union of Chambers and Commodity Exchanges of Turkey M. Rıfat Hisarcıkoğlu, Minister of Finance Mehmet Şimşek, and the Presidents of OSD (Automotive Industry Association), ODD (Association of Automotive Distributors) and TAYSAD (Association of Transportation Vehicles Supply Industry) as well as representatives from the automotive sector.

Five targets were identified for the purpose of making Turkey a manufacturing base and R&D center as part of the “Strategy Document and Action Plan for the Turkish Automotive Sector”, which was a focus of the conference. One of the targets was developing automotive ports suitable for automotive products and the transportation infrastructure of the area.

At this point, the importance of Autoport, the first Turkish port to specialize in automobiles built by Arkas Holding in 2005 in the town of Yeniköy / Kocaeli, became apparent with regard to meeting the need of the automotive sector. As the only automotive port in Turkey, Autoport will play a strategic role in realizing the 75-billion-dollar export goals which have been set for 2023.

Distance from Autoport to automobile manufacturers:

• Ford Otosan 2 km • Hyundai 20 km • Toyota 60 km • Honda 75 km • Tofaş 110 km • Oyak Renault 115 km

www.autoport.com.tr autoport@autoport.com.tr

Arkas Holding’s strength lies in its "experienced human

resources”

Bernard Arcas, Lucien Arkas, Diane Arcas Aktaş Arkas Holding employs 5,700 people in 52 companies both in Turkey and abroad and continues to expand with the strength afforded by its experienced and professional workforce.

Arkas rewards its employees according to their seniority at the Service Awards Ceremony that it holds annually. At this year's ceremonies, gratitude was expressed to a total of 615 employees in Istanbul, Izmir and Mersin while Arkas Holding Chairman Lucien Arkas celebrated his 47th year in the business. In his remarks at the awards ceremony in Izmir, Arkas Holding Chairman Lucien Arkas expressed how proud he was of the fact that the business he started in 1964 with a team of 10 people had grown until today it is an international holding with 5,700 employees in 52 companies.

Mr. Arkas employed the snowball analogy to describe how, over time, solid growth was transformed into a well-established organization. He said, “The human factor undergirds every part of this achievement - beginning, middle and end. Experienced human resources are extremely important. I am just the orchestra conductor. If our people had not been so accomplished on their instruments, we could never have come so far.”

At the ceremony, Arkas Holding Executive Vice Presidents Bernard Arcas and Diane Aktaş celebrated 20 and 15 years of service respectively. Arkas Holding CEO Önder Türkkanı was among those who received the 10-year service award. The employee with the shortest CV is at Arkas

Teoman Moler, who has worked at Arkas for 50 years, was also recognized at the awards ceremony. Moler's Arkas adventure began in 1961 and he has completed his 50th year. Today, Moler serves as a member of the DB Schenker Arkas Executive Committee and though his CV is short, it includes a wealth of experience.

World Sailors The sailor who opened the Spice Route to Portugal Vasco da Gama

Route that Vasco da Gama followed for his India trip

The Portuguese sailor Vasco da Gama was the first explorer to leave Europe and reach India directly.

Spices which could not be found in Europe or which were very expensive were brought to Mediterranean ports from India by caravans crossing the Arabian deserts. The Portuguese king Manuel I (1469-1521) wanted spice to be brought directly overseas and for Portugal to play a more influential role in the spice trade. Even though Captain Bartholomew Diaz reached Cape Hope at the very southern tip of Africa in 1488, he was forced to turn back when his men refused to continue en route to India. The king asked Vasco da Gama (1460-1503), the son of a noble family, to continue on the route that Dias had left unfinished, reach the land of India, which was considered sacred by the Christian world, and to find the treasures of the East. He also commissioned Diaz to help Gama prepare and gave order that no expense be spared. The ships were equipped with cannons that had been newly developed in Europe and enough food to feed the crew for three years. The first journey

Gama began his first journey from Lisbon on July 8, 1497 with 4 ships and 170 men. The ships followed Dias’ route and travelled 6,000 miles at open sea in over three months reaching the Great Fish River on the Eastern Cape. At the time, this was the longest journey that had taken place on the high seas. They named it Natal, which was a Portuguese term referring to the birth of Jesus. They continued along the East African coast which was controlled by the Arabs, and there were hostile encounters in a number of places. In Mozambique, Gama introduced himself as a Muslim, but when rumors began to spread that they were Christian pirates, he was forced to leave. Later, he set sail for the land that is today known as Kenya. He attacked the ships of unarmed Arab merchants and seized their cargo. After a battle with natives in Mombasa, he reached Malindi in the north. With a guide provided by the Sultan of Malindi, he crossed the Indian Ocean in 27 days and reached Calcutta on May 18, 1498. Game was greeted enthusiastically here, but his presents stopped generating interest after a while. When Gama was unable to sell his Portuguese goods, he was forced to begin the homeward journey in August with very few spices. Most of the sailors died on this journey because he failed to take into account the monsoon winds. In July and August 1499, only two ships managed to return to Portugal with about 50 sailors. Second Journey

The king immediately began preparations for a second journey and commissioned Pedro Alvares Cabral as commander. Cabral set off with 13 ships on March 9, 1500 and ended up discovering Brazil when he accidentally took a western turn and crossed the Atlantic trying to follow Gama’s route. Then, he headed for India.

Even though he brought gold and precious goods, he was unsuccessful in trade. When many of his men were killed in a revolt by Muslim natives, he bought other spices on his journey and returned on June 23, 1501 with 4 ships and valuable spices. Then, the king appointed Gama as admiral of the navy and re-commissioned him. Gama reached India on February 12, 1502 with the Portuguese Armada consisting of 15 ships and 800 men. In order to avenge Cabral’s men who were killed, they captured Arab ships they encountered on the Indian Ocean and seized their cargoes. When Gama returned to Europe in 1503, he had a cargo of gold and silk. Third journey

After a trade agreement was reached between Calcutta and Portugal in 1513, the Portuguese began their colonization of India. In 1519, Gama was appointed Count of Vidigueira by the King. Gama and all his descendants were granted all of the income and privileges of Vidigueira. Gama became famous for his success in resolving the problems that occurred in India. In 1524, he returned to India one time after a twenty-year hiatus as the general governor of the Indian colonies to replace the unsuccessful Portuguese representative. However, a short time after reaching Goa, he contracted malaria and died on December 24, 1524.

The significance of Gama's journeys

Gama is considered one of the successful explorers of the geographic journey of exploration conducted by Europeans in the 15th and 16th centuries. Gama's first journey realized Portugal's 80-year-old vision for controlling the spice route.

The fact that Gama found a direct route to Asia and reached India was not the discovery of new lands. These regions were already known by Europe, Africa and Asia. Still, Gama's journeys to India played an important role in the success of Portugal's first attempts at colonization and Portuguese prominence in the Indian Ocean as well as making a significant contribution to the Portuguese economy. In fact, he pioneered the modern European approach to colonization.

The Merchants of Calicut, India, held as hostages by Vasco Da

Gama during his voyage in 1498

Sources:

* www.wikipedia.com * www.bbc.co.uk * www.fordham.edu *www.oldnewspublishing.com, Vasco da Gamma Seeks Sea Route to India, Richard Sheppard Illustration of Calcutta merchants held for ransom by Vasco da Gama

SAP consultancy for Likit Kimya from Navigator

Likit Kimya, which offers integrated solutions to the detergent, paper, food and construction sectors in the area of bulk and packaged chemicals, has launched an SAP project in consultation with Navigator.

Navigator is helping Likit Kimya attain its goal of handling all of its operations on a single ERP (Enterprise Resource Planning) platform, ensuring standardization in processes and enhancing efficiency. The SAP application that will be implemented in consultation with Navigator will support Likit Kimya’s corporate vision.

Within the scope of the SAP project, Navigator will create an ERP environment where sales and distribution, materials, purchasing, stock and quality control, production planning, maintenance and repair and all financial processes are operated in an integrated fashion. Likit Kimya conducts its operations in parallel with its vision of providing its customers with the highest quality service from ordering to delivery and now it will be implementing a structure from which it can manage its business processes at lower costs and with higher quality, efficiency and customer satisfaction. Furthermore, it will also enable outputs that are specific to the company’s business needs such as supplier assessment reports, delivery performance reports and customer visitation reports.

In brief...

AArfor sponsors the 10th Southeast Freight Forwarder and Logistics Operators Congress

The 10th Southeast Freight Forwarder and Logistics Operators Congress was held May 26-27th at the Point Hotel Barbaros in Istanbul and was attended by countries like Bulgaria, Romania, Greece, Serbia, Ukraine, Syria, Egypt, Azerbaijan and Kazakhstan. Assessments of the logistics sector were made at the conference, opportunities and problems were discussed and logistics strategies were identified. Arfor offers a combination of all of the services that customers need at home and abroad in supply chain management and sponsored the conference organized by UTIKAD to contribute to development in the sector.

Arkas Anadolu Logistics attends the “Expo Gateway to the Middle East” trade show in Gaziantep

Arkas Anadolu Logistics is attending the “Expo Gateway to the Middle East” trade show to be held June 2-5th at the Gaziantep Middle East Convention Center with attendance from Iraq, Syria, Iran, Jordan and Lebanon.

The event will host three different trade shows, namely the Industry and Trade with Iraq and Neighboring Countries Trade Show, Food and Consumer Goods Trade Show, and the Construction and Building Trade Show. Arkas Anadolu Logistics officers will meet with visitors at stand E12 offering information and solutions related to transportation, one of the most important requirements for companies wanting to do business in the Middle East.

For more detailed information: www.expomideast.com