A study of the geographical distribution and characteristics of logistics clusters in Turkey

Clusters are defined as a number of organizations which are located in the same geographical area, whıch provide related services, and whıch are linked by a number of interdependencies (Porter, 1998). There is a rising interest in the development of logistics clusters among governments around the world to the extent where they are investing significant money and resources in that field. Logistics clusters can lead to various economies of scale. The benefits of logistics clusters are discussed in a number of studies. Those include job creation, labor pooling, the sharing of resources, cost reduction, sharing of information and knowledge spillovers. Moreover, clusters can lead to economic growth for the regions they are located in. There are a number of indexes to identify logistics clusters and their geographical distribution. Among which are the Location Quotient (LQ), the Horizontal Clustering Location Quotient (HCLQ) the Logistics Establishments Participation index (LEP) and a number of other indexes such as the Locational Gini Coefficient (LCG) and the Herfindahl–Hirschman Index (HHI). This thesis utilizes the Horizontal Clustering Location Quotient (HCLQ) and the Logistics Establishments participation index (LEP) in combination with statistical data about the transport and warehousing employment and number of establishments to identify the main geographical areas of logistics clustering. It also studies the growth of those areas between 2002 and 2014. The study also addresses the characteristics of those regions by investigating (1) the physical infrastructure in terms of airports, sea ports, road and railway density, (2) the operational infrastructure in terms of number of establishments, employment and available freight transport vehicles and (3) the logistics potential for all the provinces of Turkey in terms of freight volumes, import and export volumes and proximity to markets as indicators of demand. The results show the main regions of logistics clustering. It indicates that those regions are experiencing growth in terms of employment and number of establishments. Moreover, it provides evidence that areas with logistics clusters are characterized with excellent transportation infrastructure, an advanced operational infrastructure and high demand for logistics services as indicated by high freight and import and export volumes.