Cablegate: Turkey: Bimonthly Southeast Economic Newsletter

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R 261309Z OCT 09
FM AMCONSUL ADANA
TO RUEHC/SECSTATE WASHDC 4785
INFO RUEHDM/AMEMBASSY DAMASCUS 0203
RUEHAK/AMEMBASSY ANKARA 1327
RUEHIT/AMCONSUL ISTANBUL 1097
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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

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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

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