YATEK's $2.5 Billion Contribution to the Blue Economy

YATEK’s Vice President, Adem Kocadağ, stated that “YATEK is a project with growth potential due to its attractive geographical location and the positive effects of our country’s long-standing knowledge and experience in the yacht sector.” He continued, “With the launch of 98 shipyards, we will serve the rapid demographic and economic development of our location. We will turn the region into a hub for the yacht sector. In a very short time, we will see the parallel development of the secondary industry in the region, along with 5-star hotels and luxury dining establishments. This is because projects from all over the world will come here, and the project owners will not only bring revenue to our shipyards but also to the region indirectly.”

Regarding the full operational start date of YATEK's yacht construction, maintenance, and repair facilities, and the steps to be taken for the project’s completion:

Located in the Çaltılıdere district of Aliağa, İzmir, the S.S. Yacht and Boat Manufacturers Industry Collective Workplace Housing Cooperative (YATEK) was established in 2004 with the aim of gathering boat and yacht manufacturers operating at different points and their related secondary industry sectors. The cooperative provides marketing, training, and social facilities to meet the collective workplace needs. YATEK is a project with significant growth potential due to its geographical location, its presence in a popular yacht tourism destination, and Turkey’s accumulated knowledge and workforce in the yacht sector. Our project spans 1.472 million square meters of reclaimed land and includes 98 shipyards of various sizes (20,000 m², 10,000 m², 5,000 m², 2,500 m², and 1,250 m²) for new yacht construction, maintenance, and repair. As of today, there are no issues regarding the operation of the 98 members. Each member can begin construction according to the specified indoor area dimensions once they have completed the necessary official procedures. After completing the required licensing procedures, they can begin new construction and/or maintenance activities. So far, four of our partners have completed the licensing procedures, 64 partners are in the process of obtaining licenses, and in order to speed up the licensing process for 30 partners, the board has taken the initiative and provided economic benefits for our members by obtaining collective pricing in line with the cooperative spirit.

You have started your term as the new management with a significant change. Could you explain the differences between the previous management and your strategic vision for the future?

We try not to classify as "new" vs. "old" in order to avoid any division after the election. Our election motto was "Together Always." In line with this, we have adopted an inclusive and embracing management style for all of our members. Our first action was to open up the WhatsApp group, which was previously "closed" for use, comments, and contributions from non-management members, to allow all members to share constructive feedback and suggestions.

Furthermore, as defined for cooperatives: “A cooperative is an organization established by real and legal persons to meet and protect the economic interests, especially the needs related to their profession or livelihood, of its members, through mutual assistance, solidarity, and guarantees, while possessing a legal personality and a changeable partnership and capital structure.”

Companies are centered around capital, and their primary goal is profit. Cooperatives, on the other hand, are initiatives owned and operated by members who seek to achieve common goals, with a focus on human-centered values.

Democratic management based on the "one member, one vote" principle ensures equal rights regardless of the shareholding.

Taking into account the realities of the industry, we have established "committees" to manage the cooperative with active participation from all our members. In addition to the standard Management and Auditing Committees, we have created technical committees for operations, tenders, superstructure, and infrastructure, as well as advisory, legal, bureaucracy, and exhibition committees. These committees are formed with the participation of all members who wish to contribute and have expertise in these areas. Currently, committee members take responsibility for tasks based on their expertise, ensuring that all activities are carried out in a way that benefits both the material and moral interests of all members. I would like to express my thanks individually to each committee member on behalf of the board and all our members.

As you know, Turkey has been a global brand in the yacht construction and maintenance/repair sector for many years, competing with countries like Italy in terms of quality. Once this facility is fully operational, what will be the competitive edge and goal for our country in global yacht construction?

As you are aware, our country has long been a global brand in yacht construction and maintenance/repair. With our technical infrastructure and skilled workforce, we are a recognized leader in the yacht sector. With the operation of 98 shipyards, we will contribute to the rapid demographic and economic development of our location. We aim to make the region a hub for the yacht sector. In a short time, we will witness the development of secondary industries in the region, along with the opening of 5-star hotels and luxury dining establishments. This is because projects will come from all over the world, and project owners will not only generate revenue for our shipyards but will also indirectly contribute to the local economy.

When YATEK’s infrastructure investments are fully operational, what stage will Turkey’s global competitiveness in the yacht construction sector reach? Also, what contributions will it make to Turkey’s blue economy?

With YATEK reaching full capacity, it is forecasted that the "Blue Economy" will receive:

• A direct economic contribution of 1 billion USD,
• A total contribution of 2.5 billion USD with indirect and triggered effects.

We have a very meaningful proverb regarding this: “Strength comes from unity.” Imagine 98 shipyards filled with yacht projects, supported by a secondary industry, job creation, new university faculties, vocational schools, private courses to support the workforce, naturally new hotels, restaurants, and dozens of businesses indirectly benefiting from the region... There is no such compact structure in the yacht industry in our country or the world; we will be the first. I believe that with this amazing synergy, we will quickly advance in competition and even attract global competitors to our project. In this regard, we will be a project that attracts foreign investment to our country.

What are the most significant advantages of this large yacht construction and maintenance facility project, and how will being the largest yacht/boat construction capacity in the Aegean-Mediterranean basin reflect on the sector and the region?

Our project is unique in that it will be the largest yacht construction complex in both our region and, as far as I know, in the world. Its location is also very attractive. It has the capacity to provide maintenance, repair, and winter storage services for around 500 vessels in the Aegean and Mediterranean basins, situated in an excellent destination. We aim to reach all potential customers by effectively using social media and participating in prestigious exhibitions. One of the goals of the established committees is this. Ultimately, no matter how high-quality products and services you produce, if you cannot reach your potential customers, you cannot succeed. Our goal is to manage our cooperative in a multifaceted, 360-degree manner. We are working with experienced colleagues on this. Our vision is broad. We are not just planning for today but for the future, and we are progressing in that direction.

How will YATEK meet Turkey’s blue employment needs and the requirements for workforce and secondary industries?

When our project reaches full capacity, it is planned to provide direct employment for 15,000 people in "Blue Employment," and create indirect and triggered employment for 50,000 people. Our project is a national project. We have full support from our government, all authorities, bureaucrats, and sector components. The relevant units fully support improvements and revisions that benefit all of our members. For instance, all of our members will be able to benefit from the pre-dock construction for new builds, maintenance/repair projects, and winter storage. We will operate this collectively, as "Together Always." The work is clear, and the projects we will produce are clear. Our workforce is already in place. Of course, when we reach full capacity, we will need additional human resources. To this end, we have already planned meetings with local educational institutions. We will share our data with them to prepare for the future, discussing the workforce needs we will have in specific areas of expertise. We will project the required workforce for each specialization together. I believe that secondary industries will naturally develop in the region as the projects progress. Companies in the secondary industry already active in the sector will position themselves in the region to participate in our projects.

Could you provide information about how yacht construction and maintenance/repair services will be carried out at YATEK, and what technologies will be used in this process?

All of our planning is focused on making our project sustainable, environmentally friendly, innovative, adaptable to changing customer demands, customer-centered, and utilizing the latest technological developments. Within our project, there will be four travel lifts with capacities of 300 and 1000 tons to take yachts and boats from the sea to land, lower them into the sea, and meet their docking needs. Additionally, investments such as floating docks and ship lifts will be planned in the short and medium term to increase the efficiency of the pre-dock and slipway areas. YATEK, with the largest and most technologically advanced yacht/boat construction and maintenance/repair capacity in the Aegean-Mediterranean basin, aims to be the first choice for yacht and boat owners. It also envisions becoming a globally recognized Turkish brand with new mega yacht construction projects up to 120 meters in length.

Finally, what are your thoughts on the newly implemented VAT regulation? How will this new regulation affect Turkey's competitiveness in the international yacht and boat market?

With the new regulation, all product and service purchases for vessels under 24 meters in length will be excluded from the VAT exemption, which will naturally have a negative impact on costs. Although it is possible to refund this extra cost after the export takes place, due to the long construction times, it will create an additional financial burden on manufacturers. This will reflect in prices. To support our international competitiveness, we kindly request that this issue be reconsidered by the relevant

Who is Adem Kocadağ?

Adem Kocadağ, who was elected as the 2nd President of the YATEK Board of Directors in the General Assembly held in June 2024, is the Founder and Managing Partner of ESKO Shipping, Alpha Marine Consulting Turkey, Esko Ship Management Dubai, Bestankers Ltd, and Aegean Logistics. He graduated as a Naval Architect and Marine Engineer from Istanbul Technical University (ITU) in 1990.

• Member of the Assembly of the IMEAK Chamber of Shipping (DTO).

• Member of the Chamber of Marine Engineers (TMMOB GMO)

• Member of the Technical Works and R&D Commission of the Turkish Shipbuilders’ Association (GİSBİR)

• Trustee of the Turkish Maritime Education Foundation (TUDEV)

• Congress Member of Fenerbahçe Sports Club

• Board Member of the Fenerbahce Mariners Association

• 2nd President of the S.S. Yacht and Boat Manufacturers Industry Cooperative (YATEK).