Global economic headwinds and geopolitical tensions are clouding the outlook, but trade always "finds its way," and Türkiye may be poised to benefit, according to Kris Adams, executive vice president for Eastern Europe at DP World.
Adams stepped into his new role at the Dubai-based multinational logistics and port operator in January after nearly nine years leading the company's operations in Türkiye, where he oversaw significant growth and expansion.
His promotion came amid renewed uncertainty in global trade, not least due to the return of Donald Trump to the White House and his on-again-off-again rollout of tariffs.
But trade was already under strain.
The war in Ukraine has destabilized the Black Sea, a crucial regional commercial corridor. Meanwhile, conflicts in the Middle East, most notably Israel's relentless assault on Gaza, spilled into the Red Sea, where Yemen's Houthi rebels have targeted ships linked to Israel in a show of solidarity with Palestinians.
The resulting disruption to key regional shipping lanes had forced companies to reroute vessels, adding time, distance and cost to global supply chains.
All these have had a major impact, but the "interesting thing is that trade finds its way. It has to go somewhere," Adams told an interview with Daily Sabah.
"We think that trade will just relocate and there will be more of a trade from Asia to Europe, or it will be coming from different Southeast Asian countries," he noted.
This could represent an opportunity for Türkiye, he noted, also citing the fact that the country has been among the economies subject to the lowest "reciprocal" U.S. tariff of 10% and is viewed as being among a handful of nations emerging as potential winners.
In April, the U.S. introduced a 10% baseline tariff on nearly all its trading partners, along with sector-specific levies of 25% on cars, steel and aluminum.
Some economies faced even steeper reciprocal tariff rates, including a sweeping 145% tax on China, which prompted Beijing to retaliate and hike its duties on American imports to 125%.
But the world's two biggest economies this week tapped the brakes on a trade war that had fed fears of a global recession, agreeing to unwind most of the tit-for-tat tariffs for the next three months.
Adams acknowledged the current climate of uncertainty and instability but emphasized that DP World remains committed for the long haul.
"As a long-term player, as a player that is globally and geographically very diversified is an advantage," he said.
DP World runs more than 560 business units in nearly 80 countries and has more than 115,000 employees.
Türkiye is part of its Eastern Europe portfolio of 15 countries, where it runs five state-of-the-art ports and terminals and numerous logistics centers. The region's total container handling capacity stands at 3.6 million TEU, including 2 million TEU in Türkiye.
Until last year, it had run the container terminal DP World Yarımca, the first port in Türkiye to integrate remote-controlled electrified cranes into its operations, in the northwestern Kocaeli province.
In mid-2024, the company agreed to a strategic partnership that merged DP World Yarımca with Evyap Group's Evyaport to create DP World Evyap, which is now the biggest container terminal and logistics center in Eastern Marmara.
Adams said the expansion was necessary to accommodate future demand, anticipating the growth of the Turkish economy and the surrounding geography. "It would have been a matter of years before we ran out of capacity," he said. "We wanted to secure future capacity."
He didn't rule out future partnerships or investments, but emphasized that it would depend on "the right opportunity at the right time and under the right conditions."
Türkiye has been plagued by years of high inflation, which Adams says remains a challenge.
The annual growth rate in prices eased to below 38% in April, the lowest since December 2021 and down from around 75% it had reached in May 2024.
Labor costs have also risen "substantially," which Adams says could affect Türkiye's competitiveness as an export hub. And it could become a risk that he says could lead to a relocation of some production if costs continue rising.
Still, Adams said DP World "remains very bullish on Türkiye as a production location."
While acknowledging broader global uncertainty, Adams said he sees limited impact on Eastern Europe. "There will be some effects, but they're not necessarily negative," he noted.
Long term, Adams said, "it's a continuing growth story and Türkiye's economy will continue to grow."
Shipments and orders had surged as companies around the world rushed to beat increases in the U.S. tariffs before April. The impact in Türkiye was limited, according to Adams, who said that was probably driven by the fact that Türkiye tariffs "are on the lower side."
But "we have seen it in other markets, big time," he added. "It was like a huge search of volume, anticipating those tariffs."
Adams went on to say that DP World had shifted from being just a port operator in a journey it embarked on more than five years ago. "We are now a true end-to-end provider. We call it 'from factory floor to customer’s door,'" he noted.
The company has long sought to achieve the ambition that sees it managing and overseeing the entire supply chain process, from sourcing to delivering the final product to consumers.
"We have ports and terminals, we have marine solutions, we have freight forwarding and freight products, we have contract logistics, warehousing solutions," said Adams.
"It means that we provide a solution throughout the entire supply chain. We can connect all the dots."
DP World has set a "gigantic" ambition to double in size by 2028, according to Adams.
Türkiye is by far the largest market in the portfolio of countries Adam is overseeing. "It's still the market where we see the most potential," he noted.
"If I want to grow, I need to grow in Türkiye."
Adams spoke on the sidelines of DP World Tour, which returned to Türkiye and the golfing hub of Antalya for the first time in six years at the Turkish Airlines Open.
"One of the reasons why we have pushed for a golf tournament in Türkiye is because it's a very significant market for us," he said.
"It's good to have it back. And Türkiye should be on the list. Players absolutely love to be here. They want to continue to have it on the calendar for the years to come."
Martin Couvra of France went on to win the Turkish Airlines Open and his first title as a professional in his rookie season on the DP World Tour.
A brilliant closing 64 saw the 22-year-old claim victory at Regnum Carya with a 17-under-par total, two shots ahead of China's Haitong Li and Spain's Jorge Campillo.
The win propelled Couvra to a career-high 142nd on the Official World Golf Ranking, up from 247th.
"It was amazing to win on my first year on the DP World Tour – it's just a dream," he said.
"I wake up in the morning to win some tournaments and to win early (in my DP World Tour career) is fantastic so really happy about that."
The ambition is to have Türkiye every year on the calendar, Adams said. "The Turkish Airlines Open deserves a spot on the DP World Tour."
"For us, it's an important market, and we want to show that through our sports partnership as well."
