Turkish logistics group Reysaş Logistics will establish a container factory in Hendek, Sakarya in Turkey, with an investment of $15 million, according to media reports.
Reysaş chairman Durmuş Döven stated that they have not been able to import enough containers due to the global supply shortage and that the costs involved are high, and so they have decided to switch to domestic production. The company aims to produce 50,000 containers within five years by starting production with 5,000-10,000 units per year, while it plans to produce containers that are used not only for logistics but also for special purposes.
Stating that Turkey has a logistical advantage against China, “We do not only want to meet local demand, but also to export to European and Middle Eastern countries. Because China cannot respond to the demand immediately and it also creates $1,700 shipping costs,” Mr. Döven said.
The recent container shortage and its effects on freight prices have also affected the steel industry. At the webinar organized by Turkey’s Foreign Steel Trade Association and SteelOrbis in April, ongoing problems regarding container transportation in Turkey were discussed and it was stated that the container shortage had increased the demand for bulk cargo and freight.