Financial crisis threatens Turkish shipyards

According to 2010 data from the under-secretariat for Maritime Affairs, employment in the Turkish shipbuilding sector has dropped by 80%. The Tuzla district of Istanbul, which accounts for 40% of Turkey’s total shipbuilding, has suffered more than 200 order cancellations from shipowners around the world.

The Maritime Affairs Shipbuilding and Shipyards’ general manager Yasar Duran Aytas mentioned that the sector’s previous growth may resume when the effects of the global financial crisis disappear. Torgem shipyard manager Kemal Torlak explained that orders were cancelled one by one during the crisis. “We try to keep up by just repairing ships,” Torlak said, adding that they are not receiving any new orders. “We had been receiving orders three to four years in advance, but the crisis has deeply affected our company and 80% of our orders have been cancelled. We are now working at 20% capacity. We had to cut costs and lay off employees. There were 270 workers in our company, while only 29 people are working now.”

Experts say that employment in the Tuzla shipyards fell to 8,000 from 35,000, making Tuzla a ‘ghost town’. A spokesman from the Istanbul Productivity Businessmen’s Association underlined that urgent precautions should be taken for the improvement of the sector. “First, military ships should be built and repaired in Turkish shipyards to support the sector, while international investors should also be encouraged to enter the sector. This will increase both trade volume and employment in the sector. Moreover, financial support such as loans should be provided for companies in need.”