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MULTI-MODAL TRANSPORTATION IN ANATOLIA:

FUTURE PROSPECTS

by

Ali Orhan AYDIN1, Arzu ALVAN2, Kevin Odulukwe ONWUKA2 and


Selnur ŞARMAN3
1
Department of Industrial Engineering
Faculty of Engineering and Architecture
Yasar University
Bornova, İzmir, TURKEY

Tel: +90 232 461 4111 (ext. 249)


Mobile: +90 555 679 8043
Fax: +90 232 461 4121
E-Mail: aliorhan.aydin@yasar.edu.tr
2
Department of Economics
Faculty of Faculty of Economics and Administrative Sciences
Yasar University
Bornova, İzmir, TURKEY

Tel: +90 232 461 4111 (ext. 318/348)


Fax: +90 232 461 4121
E-Mail: arzu.alvan@yasar.edu.tr; kevin.onwuka@yasar.edu.tr
3
Department of History of Art, Faculty of Literature
Ege University, Bornova, İzmir, TURKEY

Tel: +90 232 461 4111 (ext. 407)


Fax: +90 232 461 4121
E-Mail: selselnur@hotmail.com

December, 2006
2ND INTERNATIONAL CONFERENCE ON
TECHNOLOGY AND ECONOMIC DEVELOPMENT

2
MULTI-MODAL TRANSPORTATION IN ANATOLIA:
FUTURE PROSPECTS
Ali Orhan AYDIN1, Arzu, ALVAN2, Kevin Odulukwe ONWUKA2and Selnur ŞARMAN3
1
Department of Industrial Engineering, Faculty of Engineering and Architecture
Yasar University, Bornova, İzmir, TURKEY
aliorhan.aydin@yasar.edu.tr; sedat.sarman@yasar.edu.tr
2
Department of Economics, Faculty of Faculty of Economics and Administrative Sciences
Yasar University, Bornova, İzmir, TURKEY
arzu.alvan@yasar.edu.tr; kevin.onwuka@yasar.edu.tr
3
Department of History of Art, Faculty of Literature
Ege University, Bornova, İzmir, TURKEY
selselnur@hotmail.com

ABSTRACT
From logistics perspective, Anatolia has always been very important trade route. Even
though this importance, Turkey cannot get adequate benefit of its geographic advantage. It is
due to the fact that, Information Communication Technologies are not adequately utilized in
transportation domain. With this respect, this paper offers some new approaches to put
natural geographical advantage in practice by properly applying and adapting emerging
Information Communication Technologies.

Keywords : Transportation, Information Communication Technologies

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1. Introduction
The roots of our modern life lie in the civilization of abundant crescent, which witnessed
the development of the first urban society and the invention of writing [1]. Anatolia (a.k.a.
Asia Minor) is the northern part of the abundant crescent. Anatolia is a peninsula of Western
Asia and it is bounded by the Black Sea to the north, the Mediterranean Sea to the south,
and the Aegean Sea to the west (See Figure 1) [2].

Figure 1. Asia Minor lies east of Bosphoruss, between Black Sea and the Mediterranean Sea
[2].
Anatolia has a strategic position; since, it takes place at the intersection of Asia and
Europe continents and a part of abundant crescent. Due to this position Anatolia has been a
cradle for several civilizations since prehistoric ages [2]. Moreover, from the beginning of the
history of civilizations, Asia Minor has always been very important trade route.
In the early times of civilizations, Anatolia was an important trade route beginning from
Mesopotamia and ending at two points: Asia and Europe. It became much more important
after the Silk Road is formed. The Silk Road is an interconnected series of trade routes
mainly connecting China, with Asia Minor, the Mediterranean and Europe (See Figure 2) [3].

Figure 2. The Silk Road.


Trade on the Silk Route was a significant factor in the development of the great
civilizations like China, Mesopotamia, Persia, India and Rome. It helped to lay the
foundations for the modern civilized world [3]. Idea behind in forming Silk Road was to
transport reach resources of east to west. When Morco Polo visited China, he noticed that
“China was one of the most fertile, best cultivated, most industrious, and most populous
countries in the world” [4]. In the frame of this reference, initially silk and spices are
transported to the western countries. In the meantime, the Silk Road was connecting the
whole civilizations of Asia.

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In the early times of civilizations agricultural products were very important; therefore, trade
of early times was based on these products. But today, share of agricultural products in
Gross Domestic Production of all well developed countries has little importance. However,
industrious products has much more share and importance [5]. Therefore, trade routes of
today’s world are formed in accordance with industrial products.
Currently, most well developed countries take place in the east and west of Anatolia.
While at the eastern side of Anatolia Japan, China and India exist, at the western side
England, Germany, Italy and France take place. Therefore, the same trade route shown in
Figure 2, once again becomes one of the most important routes.
Today Anatolia is the Asian portion of Turkish Republic and from the logistics perspective;
this land offers competitive advantage at this sense to the people who live in. On the other
hand, economic indicators shows that this advantage is not utilized in a good manner by
Turkey. It is because of the fact that Turkey cannot develop and implement adequate
applications of Information Communication Technologies in transportation domain.
In this frame of these references, this paper offers some applications of ICT to put present
advantage in practice by properly applying and adapting emerging Information
Communication Technologies. With this respect, in the second section of state-of-the art in
Information and Communication Technologies related with transportation activitie is
elaborated. Afterwards, logistics activities and ICT investments in Turkey are analysed
economically. In the fourth section, offered applications of ICT to be developed and
implemented in transportation domain in Turkey are introduced to provide a guideline in
achieving more efficient management and planning opportunity in transportation activities.
Finally, paper ends with the conclusion and discussion.

2. State-of-the-Art: Information and Communication Technologies


In 1970s, production systems were using planning approaches which are Material
Requirement Planning (MRP) and Manufacturing Resources Planning (MRP II) [6]. On the
other hand, at that time there were no appropriate ICT applications for managing and
planning transportation activities. In the following decade, inspiring from MRP and MRP II
concepts Distribution Requirement Planning (DRP) put forward to built up to cover some
other functions of production systems. DRP which is the firts ICT application related with
transportation activities focuses on managing distribution channels and product deliveries [7]
In 1990s, Enterprise Resource Planning (ERP) emerged for managing all inbound
processes of production systems. These applications were not covering processes related
with outbound activities which are the most important source of cost [6]. Therefore in the
middle of the 1990’s many advanced applications of ERP systems are developed to cover
outbound activities of production systems. Supply Chain Management (SCM) applications
are the software to manage and plan transportation and distribution resources [8].
While the former approaches were focusing only processes within an organization, the
main concern of this new managerial approach is to focus on interactions and processes
between production systems and their suppliers [9, 10]. Because minimizing costs, supplying
demanding customers’ needs, and getting competition advantage become key factors for
production systems to survive [11].
Today in transportation domain new Information and Communication Technologies
emerged and DRP and SCM applications begin to utilize these technologies. These
technologies mainly cover the followings: Positioning Systems (PS), General Purpose Radio
Service (GPRS), Radio Frequency IDentification (RFID), and Geographic Information
Systems (GIS).
To manage activities regarding to dispatching and transportation fleet management
became one of the most important issues in this domain. Fleet management activities
requires vehicle tracking systems that are used for managing fleet of vehicles. To track fleet
Positioning System receivers are required to be installed on each vehicle [12]. Today there
are three different positioning systems: Global Positioning System GPS, Global Navigation
Satellite System GLONASS and Global Navigation Satellite System GNSS. GPS is the
system that is developed by United States and today all applications use this system except

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for few instances. Russia has also one another system which is called as Russian Global
Navigation Satellite System (GLONASS) for tracking mobile entities. Within a few years
European Union is going to start using its own Global Navigation Satellite System GNSS
which is initiated by the GALILEI project. It must be emphasised that GNSS has the ability to
interoperate with GPS and GLONASS [13].
In these systems, ground stations which are located worldwide continuously monitor
satellites. GPS receivers detect the radio signals that are transmitted by these satellites [14].
After performing some calculations by the help of these signals and ground stations, GPS
receivers determines absolute coordinates of any mobile equipment [15].
After determining vehicles positions, data is transmitted to a management centre by using
GPRS technology. One of the most important motivation of using GPRS technology is that it
reduces costs of investment [16, 17].
In the management centre positional and speed information of vehicles are evaluated by a
special Geographic Information Systems (GIS). Because due to tough competition GPS-GIS
integrated systems provide vital data in visual form. This information becomes easily
comprehendible by drivers, customers, and fleet managers by using GIS applications [18].
By integrating these systems and a Management Information System (MIS) like DRP or
SCM, new applications are developed to more efficiently manage and plan transporation
activities related with fleets.
RFID also found very useful in tracking good movements. Emerging technologies are
integrated with RFID technology to enhance efficiency in tracking inbound and outbound
material movements. RFID technology is more advantageous that barcodes; since, it does
not require line of sight access to read and it can be read-write. Even though, there is a high
cost in RFID investments, it provides strength to management and planning in purchasing,
storing, packaging, shipping and tracking activities [19].
To enhance efficiency and reduce costs further, nowadays intelligent applications began
to be developed and implemented in this domain. The main motivation behind this intention
is that intelligent applications provides following advantages [20]:
a. respond to changing conditions quickly by their flexibility attribute,
b. preserve skills by using learning from experience concept,
c. minimise the cost of managing, planning, and controlling activities by autonomy
property,
d. handle data more efficiently, and
e. provide integration by interacting between other systems.
Especially, in transportation domain most important advantages that is gained through
intelligent applications are the result of autonomy and integration [21]. By autonomy and
integrator properties intelligent applications, track vehicles and goods to provide guidance to
users by showing them the correct/shortest paths and routes to follow.
Today, most of the intelligent applications are developed according to agent technologies.
Autonomous intelligent agents and multi-agent systems represent a new way of analysing,
designing, and implementing complex systems [22]. Especially, agent-based view offers a
powerful tools and techniques that have the potential to considerably improve the way in
which management and planning activities are performed [23]. Therefore, in the last decade,
several transportation applications are developed based on this technology and these
studies are briefly explained in Table 1.
Table 1. Agent-Based Transportation Applications [21].
Mode of MAS
Agent
Researcher Transporta Time Horizon Control Struct
Attitude
tion ure
Budenske et. al. Centraliz Dynami
Air Operational Both
[24] ed c
Perugini et. al. Distribut Dynami
Air Tactical Selfish
[25] ed c

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Zhu et. al. [26] Distribut Benevole
Air Tactical Static
ed nt
Böcker et. al. [27] Centraliz Benevole
Rail Tactical Static
ed nt
Sjöland et. al. Centraliz Benevole
Rail Tactical Static
[28] ed nt
Bouzid [29] Distribut Dynami Benevole
Road Tactical
ed c nt
Fischer et. al. [30] Distribut Dynami Benevole
Road Tactical
ed c nt
Kohout and Erol Distribut Dynami
Road Tactical Selfish
[31] ed c
Sandholm [32] Distribut Dynami
Road Tactical Selfish
ed c
Sawamoto et. al. Distribut Dynami Benevole
Road Tactical
[33] ed c nt
Buchheit et. al. Distribut
Intermodal Operational Static Selfish
[34] ed
Bürckert et. al. Tactical and Distribut Dynami
Intermodal Selfish
[35] Operational ed c
Dong and Li [36] Tactical and Distribut
Intermodal Static Selfish
Operational ed
Funk et. al. [37] Distribut Dynami
Intermodal Strategic Selfish
ed c
Proshun et. al. Distribut Dynami Benevole
Intermodal Strategic
[38] ed c nt
Bergkvist et. al. Distribut
Intermodal Strategic Static Both
[39] ed
Abouaissa et. al. Strategic and Distribut Dynami Benevole
Intermodal
[40] Tactical ed c nt
Zhu and Bos [41] Distribut Dynami Benevole
Intermodal All
ed c nt
These applications cover different functional areas of transportation domain. Mainly these
areas include following issues:
a. Fleet tracking and management,
b. Vehicle routing,
c. Allocating resources to loads,
d. Load balancing,
e. Inbound and outbound material movement tracking,
f. Managing relations with suppliers, and
g. Managing distribution channels.
These newly emerging Information and Communication Technologies and its applications
are proved to be improving efficiency in different functional areas of transportation activities.
Moreover, these technologies and applications reduce costs related with planning and
management activities of transportation.

3. Economic Analysis of Logistics Activities and ICT Investments in Turkey


Technological developments are affected by the politics, social and economic forces.
Transportation technology in Anatolia actually started taking place at the late period of
Ottoman Empire (1800s). At that time several reforms to organize and modernize the
transportation technologies are put into application by the Ottoman state. The economic
activities in Ottoman Empire relied on agriculture, manufacturing, and trade. Since the

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transportation facilities are mostly used in economic activities, modernization of old fashioned
methods brings an revitalizing effect on every point of economic relations. At the last quarter
of 19th century industrialisation started in Europe. From that time the old fashioned
production processes are started to be replaced by mass production in big factories. The use
of steam in railroads and steamship operations made the transportation more effective and
faster than before [42].
Transportation sector with its association to production is very important for the economy.
Development in transportation system is vital for a modern society. Since the globalization is
the mobility of people and the goods freely within the countries, there is always a need for
modernized, high technology transportation services. Therefore we can say that the transport
sector should be continuously innovative[43].
At this stage of the study the economic view of the transportation activities in Turkey after
1923, which is the date of born of the Republic of Turkey is being evaluated. At the same
time the importance of Information Communication Technologies (ICT) at transporataion
domain is discussed and ICT investments in Turkey are analysed. Since transportation
activities are vital for every stage of economic activities, improvement of their effectiveness
thgrough adapting new technologies is a necessity. From the point of this view, the use of
ICT at transportation domain gains importance. The use of ICT in transportation gained
importance at the mid of 1990s [44].
Transportation has a wide use in production sector. As technological changes helps to
make transportation more effective, both consumers and producers gain. Since
transportation is a vital instrument for economic activities, it is done by vehicles like trains,
cars, tracks, ships, airplanes, etc. Lengths of the roads which are used for transportation
purposes are also important. According to Table 2, between the years 1970 and 2004 the
length of the total roads in Turkey increased from 59, 453 Km to 61, 814 Km. While the
length of the provincial roads increased from 23,915 Km to 30368 Km, the length of state
highways decreased from 34, 536 Km to 31, 446 Km. The complexity and modernization of
the roads are also important in order to have efficient transportation.
Table 2. Provincial Roads and State Highways (Km).

Year Total State Highways % Provincial Roads %


1970 59 453 35 016 58.9 24 437 41.1
1980 60 761 31 976 52.6 28 785 47.4
1990 59 128 31 149 52.7 27 979 47.3
2000 61 090 31 397 51.4 29 693 48.6
2001 61 305 31 376 51.2 29 929 48.8
2002 61 369 31 319 51.0 30 050 49.0
2003 61 491 31 358 51.0 30 133 49.0
2004 61 814 31 446 51.0 30 368 49.0

Source: State Planning Organization (DPT).


There are mainly three ways to transport people and goods; railways, airways and
seaways. Since Turkey locates on important trade routes, these ways play very imporatant
role at the transportation of traded goods between east and west. Table 3 shows the
transportation of Crude Oil, Natural Gas and LNG between the years 1980 and 2003. There
is a sharp increase of Crude oil trasportation between 1980 and 1990 via Irak-Türkiye Crude-
oil pipeline. After than because of the use of new Bakü-Ceyhan pipeline, the transportation of
crude-oil via Irak-Türkiye pipeline decreased year by year. On the other hand, at begining of
1990s natural gas and LNG started to be transported. Unlike crude-oil transportation via Irak-
Türkiye pipeline, transportation of natural gas and LNG increased from 3, 302 Million SM3 to
20, 675 Million SM3.
Table 3. Pipeline Transportation (Oil and Natural Gas).

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Natural Gas and
Crude Oil (Thousand Tons)1
LNG
Years
Freight Transit Freight Domestic
(Million SM3)
Transportation Transportation
1980 20232 1680 -
1990 45670 6153 3302
2000 38747 6139 14723
2001 31280 6325 16092
2002 23763 6280 17329
2003 14000 5236 20675
1. Refers to total transportation via Irak-Türkiye Crude-Oil Pipeline
Source: DPT
Table 4 shows the number of airplanes, flights and passengers recorded in Turkish
Airlines (THY) between the years 1940 and 2003. Airline transportation in Turkey shows
upward trend since 1940s. According to the information gathered from Turkish Airlines
(THY), at the year 1940, number of airplanes were only 8. During last 63 years the number of
airplanes in THY increased to 65. Also the number of passengers transported via THY was
only 739 in 1940, it is 10,395, 519 in 2003. Since globalization means free movement of
goods and people within borders, it is not a surprise of increasing number of airline
passengers.
Table 4. Air Transportation.
Number of Number of Number of
Years Airplanes Flights Passengers
1940 8 - 739
1950 33 10.242 86.331
1960 31 22.658 305.963
1970 17 29.458 1.095.191
1980 21 21.458 1.590.416
1990 35 44.496 4.574.497
2000 73 117.916 12.030.747
2001 69 109.028 10.277.423
2002 66 102.607 10.382.909
2
2003 65 100.321 10.395.519
Source:Turkish Airlines
1. Data reflects THY figures including the planes rented.
2. Estimated values.
Table 5. Merchant Fleet (Over 18 Gross Tonnage (GRT)).
Passenger
Cargo Ship Tanker
Year Ship Total
s Numb Numb Numb Numb
GRT GRT GRT
er er er er GRT
195 178.68
0 2.055 348.738 129 9 13 7.499 2.197 534.926
196 213.43
0 2.541 559.544 150 1 31 64.181 2.722 837.156
197 111.79 145.35
0 2.275 530.498 163 0 82 3 2.520 787.641

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198 1.163.02 119.77 439.46 1.722.26
0 2.613 9 234 3 137 3 2.984 5
198 2.323.03 166.35 904.58 3.393.97
8 2.823 5 777 3 205 6 3.805 4
Source: DPT
Table 6. Merchant Fleet (Over 300 Gross Tonnage (GRT)).
Passenger
Cargo Ship Tanker
Year Ship Total
s Numb Numb Numb Numb
GRT GRT GRT
er er er er GRT
199 2.100.71 1.101.1 3.272.87
0 493 0 34 71.021 105 42 632 3
200 5.133.51 121.60 963.84 6.218.96
0 691 0 57 5 152 6 900 0
200 5.098.89 123.39 1.143.0 6.365.32
1 678 9 62 3 159 75 899 4
200 4.482.74 118.00 911.38 5.512.13
2 661 3 47 9 191 3 899 5
200 4.151.57 113.20 675.16 4.939.95
3 649 9 48 7 193 7 890 3
Source: DPT
Sea transportation which is another way to move items and people, increased both in
capacity and number during 53 years period. Table 5 and Table 6 show cargo, passenger
ship and tanker between the years 1950 and 2003. According to the tables, only passenger
ship shows a decline from 178,689 GRT to 166,353 GRT between the years 1950 and 1988.
On the other hand tanker transportation between the years 1990 and 2003 increassed in
number from 105 to 193 but decreased in load from 1, 101, 142 GRT to 675, 167 GRT.
Table 7. Automative Industry Production.
Automo
Truck Pick-Up Bus Minibus Total
Tractor bile
Years Track Midibus Producti
Production Producti
Production Production on
on
1960 476 684 - 1 1.161
1970 7.518 10.335 1.909 3.660 23.422
1980 16.936 15.364 3.722 31.529 0
1990 30.098 27.205 13.875 167.556 238.734
2000 37.434 97.155 36.136 297.476 468.201
2001 15.052 83.355 11.987 175.343 285.737
2002 10.652 129.167 13.200 204.198 357.217
1
2003 30.000 205.000 23.000 290.000 548.000
1. Estimated values.
Source: DPT
Automative industry supports transportation services by supplying vehicles such as
tractor, truck, pick-up track, bus, mini bus, midi bus and automobile. In Turkey, production
volume of tractor, bus, mini bus, midi bus, and automobile shows an increasing trend until
the year 2001. After that it decreases nearly by two-thirds until 2002. Estimated production
volumes of these vehicles are as double as the volume in the year 2002. Only the production
of truck and pick-up track increased in tandem betwen 1960 and 2003.

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As it can be seen through the tables given above, transportation at all ways is developing
since during the last 30-40 years period. And it is expected to continue to develope at the
future. This can be said with no doubt that transportation is a promising service sector which
is a vital complementary part of the production process. Therefore, improvement and use of
technology at both parts is vital. The use of technology at transportation is through ICT
applications. Technologically improved information and communication sectors and their
broad usage at every stage of production activities especially at transportation part bring both
cost and time effectiveness.
ICT sector is very new both in the world and in Turkey. With widely use of ICT demand
and supply of it is increasing at all over the world. It has begun to develope at 1990s in
Turkey. Two main sub-sectors of ICT sector are consumer electronics and
telecommunication. These two sub-sectors constitute a bigger share in total ICT sector value
added in terms of production, export and import figures. Computer hardware, end user
communication equipment, office equipment, data communication and network equipment,
telecom services (including internet services and online services), software products and IT
services are the includings of ICT sector. The market share of total ICT sector in GDP in
1999 is 1,9% and the share of ICT investments in GDP is 3,1%.
Table 8. Private Gross Fixed Investments in Turkey at Transportation and Communication Sector
(Percentage Share of GDP).
196 197 198 199 200 200 200 200 200
Year 3 0 0 0 0 1 2 3 4
Transportation and
Communication 2,9 7,5 9,7 10,7 27,9 23,6 18,4 16,9 20,3
Sector
Source: DPT
Table 9. Public Gross Fixed Investments in Turey at Transportation and Communication Sector
(Percentage Share of GDP).
196 197 198 199 200 200 200 200 200
Year 3 0 0 0 0 1 2 3 4
Transportation and
30,0 24,7 21,7 19,9 23,2
Communication 10,5 11,8 14,2 17,9
7 9 0 0 8
Sector
Source: DPT
Table 8 and Table 9 show that ICT investment shares of public and private sectors in
GDP are steadily increasing. Since the importance of ICT is awared, most of the companies
started to adopt their production and service processes to ICT applications. Nevertheless ICT
production requires strong infrastructure including high-skilled labour and well-equiped
capital formations[46].
Table 10. ICT Market in Turkey.
ICT Market
(*1,000
Grow Grow Grow Grow
USD)
2001 th 2002 th 2003 th 2004 th 2005
Informatio
2,243,91 2,633,16 2,870,00 3,455,14 3,946,00
n 17,3 9 20 14,2
3 4 0 3 0
Technology
Communica
6,847,33 7,516,87 8,592,00 11,815,0 13,800,0
tion 9,8 14,3 38 16,8
0 8 0 90 00
Technology
9,091,24 10,150,0 11,462,0 15,270,2 17,746,0
11,6 12,9 33 16,2
Total 3 42 00 33 00
Source: DPT

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As it is seen in Table 10, both information technology and communication technology
maintains a growth trend between the years 2001 and 2005 [45]. Especially after Customs
Union agreement with EU, ICT sector has been following a restructuring and faster
development phase in order to catch up the competitive power among its rivals in EU. The
sector is affected negatively by the financial crises but it is starightened up quickly. By the
year 2002, telecommunications sector in Turkey shifted from a classical-state dominated
form to one structured and regulated form in accordance with the EU directives. With its fast
developments at the last five year period, ICT sector is seems a promising sector in Turkey’s
future [47].
Turkish firms which have enough financial power started to use ICT in their operations
after 1990s. In order to maintain low cost in transportation services, firms operating in
transportation sector also begun to invest to ICT. According to the tables (Table 11, Table
12, Table 13) below, ICT demand and production is increasing. Although it is showing an
upward trend at the last twelve years, production of ICT still is not enough. Import figures are
greater as four times as export figures. Therefore, Turkey is still a technology importing
country. But it cannot be said that Turkey fully performs its market potential. Nevertheless, if
stabilized macroeconomic conditions can be established, ICT sector is giving a sense that it
promises a continuum improvement with new projects such as liberalized telecoms market,
and ambitious e-Transformation Turkey project [46].
Table 11. ICT Demand and Production (*1,000,000 USD).

Product 1990 1995 2000 2002


ICT Demand 2975 3911 11341 9515
ICT
Production 2394 2859 7590 7546
Source: DPT
Table 12. Turkish ICT Exports (*1,000,000 USD).

Product 1990 1995 2000 2002


Computer Equipment 19 17 59 40
Communications
Equipment 14 31 83 79
Software Products 0,03 0,5 5 n.a.
Total 33,03 38,5 147 119
Source: DPT
Table 13. Turkish ICT Imports (*1,000,000 USD).

Product 1990 1995 2000 2002


Computer Equipment 396 596 1385 988
Communications
Equipment 166 402 2355 800
Software Products 52 92 158 n.a.
Total 614 1090 3898 1788
Source: DPT
Turkey with its dynamic and well-educated young population has a great potential of
labour supply. ICT as an emerging sector needs high-skilled labour who can use and
develope these technologies and capital with well-established infrastructure. ICT workforce is
competitive in terms of their wages and skills, enlargement of skilled workers base remains
as another issue for further development. It is recently realized that productivity gains leads
economic growth. According to the last developments at growth accounting, ICT is started to
be seen as an other factor influencing growth [48]. Also use of ICT improves effectiveness
and efficieny of labour and capital at all stages of production processes. Thus, both cost and

12
time can be reduced. From the view of transportation perspective, ICT maintains this cost
and time advantage thus faster and more efficient transportation services can be done [49].
Both the government and the private business owners are aware of the potential of ICT.
For this reason Turkish government gives incentives for foreigners to lead them invest at
Turkish ICT sector. Incentives in tax collections are provided for the firms which are
operating at this sector until the end of 2013. Also the establishment of new technoparks is
planned.

4. Offered ICT Applications


Even though, it is proved that applications of ICT promises in efficiency increasement in
transportation activities, economic analysis shows that Turkey is at the very beginning of the
road. Yet, it is not currently utilizing these emerging technologies well enough. Therefore,
Turkey cannot use its natural advantage enough to improve transportation services through
ICT applications. If companies that operate in transportation domain can ully utilize emerging
technologies and their applications, economic power of Turkey can significantly improve.
Currently, Turkish transporters use simple Distrubuted Resource Planning applications.
These applications only manage distribution channels and generate simple schedules for
allocating resources to loads. Besides, producers use Supply Chain Management software to
manage their relations with suppliers. While managing relations with them, they are only
generating some vehicle routes.
To put the natural advantage in practice, Turkish transportation companies and producers
should develop and implement applications in the following functional areas:
a. Fleet tracking and management,
b. Advanced vehicle routing,
c. Scheduling to allocate resources to loads,
d. Outbound good movements tracking among facilities, and
e. Advanced relation management with suppliers.
In fleet tracking and management functional area, use of GPRS is enabled in Turkey but
there is a lack of PS based applications. To utilize these types of applications in Turkey,
initially appropriate GIS applications must be developed. These systems must be able to hold
the data related with all roads, railroads, ports and airports in Turkey. These systems must
be integrated with Positioning Systems. Moreover, these applications must have the
capability to interoperate with different platforms.
Routing becomes a complex problem if there are several vehicles. Especially, when
different modes of transportation are used by routing several vehicles require computer
assistance to efficiently use resources. In this functional area, agent technologies proved to
be promising. Therefore, route determination according to planned transporation activities
must be performed by intelligent agent applications. Flexible applications can be efficiently
generate routes according to changing orders.
Moreover, agent-based applications can also assist in tracking vehicle routes. By
combining PS and GPRS technologies to provide data, agents can monitor vehicle
movements. Whenever it is necessary, an agent can warn relevant personnel to take
necessary actions. Moreover, agents can provide guidance to workers by showing them
alternative paths and routes to follow.
Allocating resources is the one another important issue in Turkey. Inappropriate loading
causes low capacity use and increases cost of transportation. Therefore, it is vital thing to
allocate resources to loads by using emerging scheduling techniques and heuristics. Many
genetic based and hill-climbing approaches and their hybrids are developed recently. Based
on these developments, new software must be designed and developed accordingly.
These activities cannot be performed without routing information. Therefore, allocation
proceses must be integrated with routing systems. In multi-modal transportation,
characteristically, each vehicle has different capacity constraints. Therefore, new systems
should be designed to operate flexibly under several capacity constraints. In the frame of this
reference, these systems can be realized as constraint satisfaction experts.

13
Many logistics companies and producers comprise geographically dispersed facilities.
These types of systems use applications of Information Technologies to handle data related
to goods and/or loads. On the hand, these systems are currently utilizes barcode technology.
Therefore, it takes a lot of time to control incoming goods and/or load from other facilities.
In this area, RFID technology has great advantages. Even though it requires a high
investment, it increases efficiency and reduces costs related to processing data. Therefore, it
is suggested to develop or implement software applications which are RFID enabled.
Current SCM applications help logistics experts to manage relations with suppliers.
Besides, advanced relation management applications can be developed by using agent
technologies in this front. When a customer order is received, agents can determine when
and which raw-materials are required and provide information to the vendors and give the
purchasing orders while optimising load of vehicles.
Other applications for SCM purposes can be developed according to multi-agent concept.
In such systems each supplier can be represented by an agent. Those agents can
collaborate on managing procurement processes. This collaboration can provide integration
throughout the whole system and routing of vehicles can be better planned.
Other forms of supply chains are Cluster Assemblies and demand and supply networks
(DESNET). These types of SCM models help small and medium enterprises (SME) to
increase their impact on the market by creating cooperation. These models can be realized
through multi-agent concept. Agents can be designed to cooperate with others to obtain the
best profits of its enterprise.
Especially, cluster assemblies can be very beneficial for SMEs in Turkey. SMEs which
works with similar suppliers and supplies to the same markets can become together to form
a cluster assembly. Afterwards, they can establish a single fleet for transportation purposes.
This single fleet can be planned and managed by single Information System. In this manner,
this fleet can be planned and managed very efficiently and costs related with transportation
activities can be minimized.
DESNETs can be realized in larger geographies. Companies that are located in the
countries cooperating with Turkey like Romania, Azerbaijan, and Turkish Republic of
Northern Cyprus can form DESNETs. DESNETs are structured organisations and each
stage is connected to upstream and downstream stages through virtual market places. This
approach is based on multi-agent concept and it is a virtual enterprise. Therefore, it is easier
to realize through agent technologies.
Cooperating countries companies can develop models which are virtually a connected
chain of service stages, each one containing a small firm or a set of parallel firms, each firm
with its proper autonomous decision-maker denoted by an agent. In this manner, overall
profit of all cooperating companies can be maximized.

5. Conclusion
In this paper, transportation activities of Turkey is analysed economically. Afterwards, ICT
investment share of Turkey is critised. These evidences show that Turkey cannot get
adequate benefit from its natural geographic advantage; since, Turkish producers and
logistics companies are not developing, adopting and implementing emerging Information
and Communication Technologies and their applications sufficiently.
In the frame of these references, five functional areas related with transportation activities
are determined to develop and implement emerging technologies. These areas determined
as follows: fleet tracking and management, advanced vehicle routing, scheduling to allocate
resources to loads, outbound good movements tracking among facilities, and advanced
relation management with suppliers. Finally in this paper, for each of these areas, several
ICT applications are proposed to be realized in production and logistics systems.

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