CAG Logistics will pave the way for SMEs in the USA and UK

Soycan Group of Companies will integrate the IT infrastructure of Sarpedon Foreign Trade, which started its warehouse investments by establishing offices in the USA and the UK, into CAG Logistics. Thus, the loads of SMEs will be taken from their doors and will be brought to the customers in these two countries.

Yilmaz Soycan, Chairman of the Board of Directors of Soycan Group of Companies, announced that Sarpedon Foreign Trade within the group established a company in the USA and the UK, and also started warehouse investments, and said, “We will integrate the IT infrastructure of our foreign trade company into logistics. Thus, we will carry the loads of small and medium-sized companies in Turkey to the USA and UK, and establish a combined system that we distribute there.”

Soycan Group of Companies operates with 13 companies operating in logistics, international trade, automotive, forest products and food and livestock sectors. CAG Logistics, one of the Soycan group companies, offers international road transportation, railway, seaway, airline, intermodal transportation, project and 4PL transportation services in Eastern Europe, Middle East, Commonwealth of Independent States and Balkan countries with its history dating back to 1952 and strong agency network worldwide. The company, which produces special solutions according to customer needs in the fields of supply chain management, loads an average of 150 thousand tons and more than 10 thousand trucks annually in road transport by international rail with 450 suppliers.

Emphasizing that they work with world giants in their field, Yılmaz Soycan emphasized that they manage nearly three thousand TRUCK fleets. Soycan Group’s foreign trade company recently opened its own offices in the United States and the UK. One of the most important agendas of CAG Logistics this year is to provide combined services using the common IT infrastructure with the foreign trade company. Stating that they have made very important IT investments for this, Soycan said, “We are about to complete our warehouse investments in these two countries. We will integrate the IT infrastructure used by our trading companies into logistics. Thus, by the end of the year, we are carrying the loads of small and medium-sized companies in Turkey to the USA and UK and working on a combined system where we will distribute there. Our goal is to complete all infrastructure investments and start this service at the end of the year. ” he said. Soycan said that the biggest advantage of this service, especially for B2C customers, is that they can provide the entire supply service through a single company and that they will manage this operation by using all modes of transportation.

It is getting prepared to open office in Romania and Lithuania

As of 2020, CAG Logistics continues to expand its service area by adding Finland, Sweden, Norway, Denmark and the UK to its route. Cag Logistics, which has its own office in Bulgaria, is also scheduled to invest in Romania and Lithuania in the last quarter of this year. Yılmaz Soycan emphasized that CAG Logistics, which has an office in Bulgaria, is the first company to have a completely Turkish-owned railway line abroad with its investments in this country. Soycan stated that they carry 100 thousand tons of freight annually on the railway.

It aims for 30 per cent growth this year

Emphasizing that they grew by 50 percent during the crisis period despite the pandemic, Soycan said that they predicted to increase over 350 million TL with a 30 percent increase in turnover at the end of the year. Describing their goals for other areas within the group, Soycan said, “We have over 100 percent growth expectation with the new brands we have added to our body in automotive. We aim to increase our international trade turnover in Turkey at least three times. We will continue to grow in e-commerce abroad. We will start operating in different sectors and new markets with our own brands. He said ”Before the end of this year, we plan to start our production activities with our own brands for wooden kitchen and service equipment and children’s toys. We plan to enter Canada, France, Africa, Dubai and the United Arab Emirates markets in the last quarter of 2021.”

“We will experience golden years in the economy”

Soycan, who is hopeful for the future, said, “I assume that we will experience golden years in the economy for the next two years. Demand increases in the sectors where we operate positively affect our business volume. The policy followed by the central banks of the country in developed countries and the capital flow they provide to these countries provide economic vitality. Soycan stated that despite all the difficulties created by the pandemic, it also made positive contributions to the sector and added, “New business solutions have developed with the investments in technological and software infrastructure in order to meet the increasing demands of companies. In this way, the sector reached the point where we predicted its future in 5-7 years in 1 year.”

“It is the right time to discuss the removal of borders with the European Union in transportation”

Yılmaz Soycan, who is also the President of the Turkish-Belarusian Business Council, stated that the capacity of the existing border crossings is no longer sufficient for the exporter and argued that the borders with the EU should be removed in international transportation. Soycan noted that:

“Turkey already has a common Customs Union Agreement with the EU. With the pandemic, Turkey’s role in the supply chain has increased. Today, one generation travels from Europe to China in 12 days, while we cannot travel from Erzurum to Europe by road in 13 days. The biggest obstacle in front of this is the waiting at the borders. This is not only the problem of Turkish exporters and logisticians, but also of European manufacturers. If the Europeans want to buy goods from us and produce with us, we should discuss the common border and common security. As both the chairman of the business council and one of the logistics sector, I can confidently say that the Ministry of Commerce and the Ministry of Transport and Infrastructure have made very important efforts to increase the capacity of the border crossings. However, more is needed now. Beyond capacity. It’s time for us to consult on common border security with EU countries. The pandemic has taught the world that we must act as a whole. The pandemic has forcibly taught us that we need to go beyond issues such as a transitional document. With today’s agenda, today’s awareness, we need to open them up for negotiation. It’s the best time for this. If the Europeans want to drink tea in their home and reach their medicine, they need this supply chain and us.”

“The epidemic made it necessary to stock up at the place of consumption”

Yılmaz Soycan stated that one of the changes created by the pandemic in the supply chain is the obligation to stock the products where they are consumed, not where they are produced anymore and added: “I think the understanding of ‘Just in time’ in the business world ends with the pandemic. In the new period, companies have to be financially strong enough to carry not only in the sales area and sales maturities, but also in production capacity and stock for a sufficient period of time. Previously, the average purchase time in the automotive and other sectors was 3 days and 28 days with two options. I think that this period will increase to 7 days and 45 days in the coming period and these periods will pave the way for Africa. I guess that Africa will play an active role as a producer due to its logistics position along with its 45-day supply chain.”

Interview: Aysel Yücel – Dünya Newspaper