TURKEY: BIMONTHLY SOUTHEAST ECONOMIC NEWSLETTER

UNCLAS SECTION 01 OF 02 ADANA 000064 SIPDIS E.O. 12958: N/A TAGS: ECON ENRG TU SY SUBJECT: TURKEY: BIMONTHLY SOUTHEAST ECONOMIC NEWSLETTER TURKEY'S LARGEST WIND FARM UNDER CONSTRUCTION IN OSMANIYE Rotor Elektrik, a subsidiary of Zorlu Enerji, is constructing Turkey's largest wind farm in the mountainous Gokcedag area of Osmaniye province's northeastern Bahce district. Listed on the Istanbul Stock Exchange and one of Turkey's five private power companies, Zorlu Enerji is owned by Zorlu Holding, which has investments in textiles, appliances and electronics, and real estate. The 180 million Euro project covers an area of 15 kilometers. Of the project's 54 2.5MW wind turbines, construction on 30 is complete, and 14 are currently operational and generating a total of 35 MW of electricity per day. The project manager expects the facility to become fully operational in March 2010. The electricity generated is connected to the national grid. HATAY PROVINCE AIMS TO CAPTURE WIND POWER Belen Elektrik company, a subsidiary of Ankara-based Guris Holding, has begun testing Hatay province's wind power with ten 3 MW wind turbines. The project site covers four kilometers in the Belen district. The current total capacity for electricity generation is 30 MW, with plans to ramp up to an annual production of 95,700,000 kWh/year. According to the project manager, eight wind turbines are in commission, and work to resolve technical problems on the remaining two continues. THE ROAD TO DAMASCUS IS VISA FREE On October 13, Turkey and Syria reciprocally lifted visa requirements, boosting hopes for increased economic activity in the service and consumer goods sectors in eastern and southeastern Turkey. Association of Tourism Investors President Turgut Gur said removing the visa requirement may translate into at least 1,000,000 Syrian tourists entering Turkey in 2010. Adana and Mersin Hilton report a significant surge in year-on-year business in the week following Turkey's signing of the visa protocols, with up to 40 percent of clients coming from Syria. PUBLIC LAND IDENTIFIED FOR NEW AIRPORT IN MERSIN PROVINCE Mersin Chamber of Commerce and Industry President Serafettin Asut announced the nation's airport authority (DHMI) had given approval for the construction of the new Cukurova Airport in spite of controversial government reports suggesting the swampy soil was not suitable for runways. DHMI dismissed reports, pointing to advanced technology to resolve geological hurdles. Construction could commence as early 2010 and be completed in 18-24 months, if project financing for the airport (BOT model) goes as planned. Mersin's business community is optimistic the airport will be a boon to the local economy and provincial tourism, in particular delicate agricultural products like Mersin's strawberries that rely on cold chain. Adana business circles are displeased with this development, as they view the new airport as a threat to Adana airport's own expansion plans and waste of resources. The often bitter arguments aired in public will likely continue. TOURISM ASSOCIATION SETS SIGHTS ON TURKEY'S EAST Turkey's Association of Tourism Investors (ATI) has thrown its support behind the GOT's "democratic opening" initiative, with a view to unlocking the business potential of the country's eastern region teeming with rich historical and religious sites. Given last year's 12 percent increase in tourism to eastern Turkey, investors are giving priority to the east and readying delegations of business people to survey potential hotel sites and other infrastructure needs. Hotel chains like Hilton are also expanding in the east, with a new Hilton Garden Inn Diyarbakir set to open its doors in early 2010. ATI President Turgut Gur said his organization recently held its annual meeting in Mardin, a city where villas are being converted into boutique hotels. BUSINESS IS BRISK AT MERSIN INTERNATIONAL PORT Mersin International Port reports a 7 percent year-on-year increase in its business volume at the end of August 2009. According to the Mersin Chamber of Shipping, a surge in imported goods, domestic shipping activities, and a 48 percent increase in cement exports are behind the upsurge in port business. TURKEY'S LARGEST RAILWAY LOGISTICS CENTER PLANNED IN TARSUS Turkish State Railways (TCDD) 6th Region Manager Hasan T. Koprulu announced 17.9 million TL (USD 1.3 million) in land expropriations were underway in the planned construction of Turkey's largest loading facility and logistics center in Mersin province's Tarsus district. The logistics center will be fed by ADANA 00000064 002 OF 002 connections to area organized industrial centers and integrated with other modes of transport. Container loading/unloading, storage areas, customs and duty paid facilities will be included. Employment generated by the construction will help invigorate the local economy. MERSIN TECHNOPARK SEEKS AMERICAN PARTNERSHIP Established in 2006, the Mersin Technopark (MT) is a product of collaboration between Mersin province, city, state university, chamber of commerce, and other business organizations. The MT, described by its manager as a work in progress, provides technological and entrepreneurial support to companies and is seeking to expand its scope with international collaboration. Currently, 23 start-up companies are doing business at the MT in the software, automotive, food processing, alternative energy and healthcare sectors. IBM and the United Nations Development Program have collaborated with MT and other local partners to contribute to its key mission: to expand economic opportunities, increase access to educational resources and find sustainable solutions to environmental issues. In late 2008, a visiting Chinese delegation signed a goodwill agreement with the MT for expanded ties, and a group of Turkish entrepreneurs reciprocated with a trip to China. MT management desires American partnerships as well. TRUCKING COMPANIES IN HATAY FEELING ECONOMIC PINCH Shrinking demand, an excessive number of trucking companies, and the low cost of sending freight by sea or rail have affected the bottom line of ground transportation businesses. One such company owner, Suleyman Ustun, said his company has been badly affected by the global crisis, with a 50 percent decrease in his 2009 business. Ustun said the lifting of the visa regime between Turkey and Syria would not affect the trucking sector, but welcomed the recent reduction of some costs such as the 160 USD border-crossing fee levied on drivers every six months. DARNELL