Turkey is calling on investors to expand its well-established and advanced shipbuilding industry to encompass the production of electric boats and yachts, the Izmir Development Agency (IZKA) said on Thursday.
Prepared with the coordination of the Turkish Ministry of Industry and Technology Development Agencies General Directorate, the IZKA report covers a pre-feasibility study for local and international investors who are interested in building a shipyard in the Turkish coastal province of Izmir in the Aegean region.
With a projected investment of $13.5 million and an 11-year remuneration period, the shipyard's technical capacity could reach 1,000 boats per year with potential employment for 537 workers.
According to the report, the global race for electric boats and yacht production is already gathering momentum, with an expected market growth of 12% per annum up to 2027, to reach $12.3 billion from $4.5 billion in 2018. Including hybrid versions, the market volume could rise to $20 billion, the report showed.
Turkey's boat and yacht industry is already well established internationally and considered highly competitive, ranking third globally in the production of superyachts in terms of number and length since 2010, and having already attracted much foreign currency to the country.
With Turkey’s production experience and lower production costs, it is well placed with its competitive edge to develop this sector to become a major producer of electric boats and yachts by 2045, the agency said.
"The fact that Turkey is more expensive compared to Far East countries but less expensive compared to Europe and America, along with quality and customized production options in yacht production, gives it an advantage among European yacht producers and brands," the report explained.
The agency forecasts that although there will be a relatively slow production pace in the first five years, production will surpass the pace of global demand by 2045 thanks to market growth and the branding of Izmir for yacht production.
- Target markets are Europe and North America
The report identifies Europe and North America as the target markets for imports in the first phase, due to their high share in the country's current imports.
The report also underlined the shift away from boats using conventional fuel resources with its high fuel costs and the ensuing pollution problems, to greener technologies in the industry such as advanced battery systems, which in turn is boosting demand for electrical boats and yachts globally.
"We are working based on our mission to produce information and develop unique and pioneering projects with green and blue growth in Izmir. Towards this aim, we are preparing pre-feasibility reports to increase production with high added value and expand Turkey's industrial sector's supply chain with new companies," IZKA's Secretary-General Mehmet Yavuz told Anadolu Agency in an exclusive interview.
The report highlights Izmir's potential for the production of electrical boats and yachts supported by the global green transition, decarbonization efforts, and the preference towards safe and environmentally friendly tourism.
“With this report, we provide local and international investors with a new project idea for our country. We invite all investors that have an interest in investing in this sector to look into the pre-feasibility report and communicate with our agency," he concluded.
By Ebru Sengul Cevrioglu