VZCZCXRO9664
RR RUEHDA
DE RUEHDA #0004/01 0151608
ZNR UUUUU ZZH
R 151608Z JAN 10
FM AMCONSUL ADANA
TO RUEHC/SECSTATE WASHDC 4837
INFO RUEHAK/AMEMBASSY ANKARA 1380
RUEHIT/AMCONSUL ISTANBUL 1143
RUEHDM/AMEMBASSY DAMASCUS 0209
RUEHDA/AMCONSUL ADANA 1447

UNCLAS SECTION 01 OF 02 ADANA 000004 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON ENRG TU SY
SUBJECT: TURKEY:  BIMONTHLY SOUTHEAST ECONOMIC NEWSLETTER 
 
GAZIANTEP - ALEPPO RAILWAY INAUGURATED THROUGH COBANBEY BORDER 
GATE 
 
The completion of an extensive demining project in Kilis 
province's Elbeyli district allowed for the establishment of 
Turkey's third railway gate with Syria at the Cobanbey border 
post, reopened on December 22, 2009, after 28 years.  The 
Cobanbey gate will be used for rail transportation only, and not 
for vehicular or pedestrian border crossings.  Kilis Chamber of 
Commerce and Industry Secretary General Murat Sakar said trains 
now run twice a week between Gaziantep and Aleppo, a journey 
that takes about three hours one way.  The reciprocal lifting of 
the visa requirement between Turkey and Syria has stimulated 
tourism in Mersin, Adana, Hatay and Gaziantep provinces. 
Chambers of Commerce and local tradesmen are seeking ways to 
promote shopping as a tourism product for visiting Syrians, as 
well as increase rail cargo services to boost exports to the 
Middle East. 
 
BESIKTAS GROUP ABANDONS SHIPYARD PROJECT IN ADANA'S FREE ZONE 
 
Citing the effects of the global economic crisis, Besiktas 
Group, a company active in shipbuilding, repairs and maintenance 
services, abandoned its ambitious shipyard project in the Adana 
Free Zone.  Adana's Yumurtalik Free Zone Manager Muharrem Pusat 
said the Group had rented an area of 320,000 square meters in 
early 2008 and had concluded a costly environmental impact 
assessment in what would have been the largest maintenance and 
repair shipyard in the Mediterranean.  This is the fourth 
shipyard project in as many years to be cancelled in the 
Yumurtalik Free Zone, after a reported total of $2 million was 
spent on environmental assessments.  Pusat said the Ugursan 
Shipping Group and Tersan Tersancilik companies continue to 
pursue investments in the zone, however.  Mersin Chamber of 
Shipping President Cihat Lokmanoglu said the cancellations are 
not surprising given high costs associated with the investment, 
in particular when the shipyard market in Turkey is saturated 
and existing enterprises are struggling.  Lokmanoglu noted 
shipping and shipbuilding are the first sectors to be hit in a 
global economic crisis. 
 
KILIC HOLDING OPENS TURKEY'S LARGEST FISH-PROCESSING FACILITY IN 
KAHRAMANMARAS 
 
Kilic Holding, a Mugla province-based company, has opened 
Turkey's largest fish-processing facility in Kahramanmaras 
province.  According to local reports, the investment cost 14 
million euro, employs 80 people and has a daily production 
capacity of 50 tons.  Kilic Holding Kahramanmaras Director Cenk 
Arzuman said the facility is the second largest in Europe. 
Kahramanmaras Industrialists and Businessmen Association 
President Kadir Kurtul said the province managed to increase its 
year-on-year exports 12  percent in 2009, thanks to alternative 
markets.  Kurtul said Italy ranks first with $116 million, 
Brazil ranks second with $32 million, followed by Germany, Syria 
and Poland. 
 
MERSIN TECHNOPARK LAUNCHES HIGH SCHOOL ENTREPRENEURSHIP PROGRAM 
 
Mersin Technopark's "grow with your idea" contest, aimed to 
foster entrepreneurialism in youth between ages six and 14, is 
among the invitees to the European Year of Innovation and R&D. 
Technopark Manager Ozgur Durmaz said her team travelled to 
Sweden on December 15 to talk about their contest, noting hers 
was the only project at the event.  Mersin's Technopark is 
currently working to expand the project to include all high 
school students in Mersin province. 
 
DUTCH NOBLE GROUP PLANS PORT AT CEYHAN 
 
After conducting feasibility studies in Greece and Libya, Dutch 
Noble group has chosen Ceyhan in Adana province to build a new 
port on 3,000,000 square meters of land in the Energy Specialty 
Zone.  The projected facility would have an oil storage capacity 
of 1 million tons.  Feasibility studies will conclude in the 
next month, according to a business contact, resulting in an 
investment of 2 billion euros that would create employment for 
1,000 people. 
 
DIYARBAKIR BUSINESS CHAMBERS DISAPPOINTED INCENTIVES LAW NOT 
RENEWED 
 
Despite public promises made by Prime Minister Tayyip Erdogan, 
State Minister Ali Babacan announced January 14 the government 
would not extend the "5084 incentive law," a financial incentive 
package for companies in "priority" regions in the southeast. 
Law 5084 came into effect in 2004 and expired on December 31, 
2009, and covered 49 provinces in Turkey with a per capita 
income below $1,500.  The law included special advantages such 
as reductions in income taxes as well as social security 
premiums for employees, energy support, and free allocation of 
 
ADANA 00000004  002 OF 002 
 
 
land.  Babacan said despite the cost of $1 billion to the 
government, social security premium support for new employees 
would continue until 2013, but the government would no longer 
subsidize energy costs.  Land grants would continue on a 
case-by-case basis under the new law.  Diyarbakir business 
leaders are disappointed the law was not extended, citing it as 
a major factor in the development of the province's nascent 
industrial sector.  Diyarbakir Industrialists and Businessmen 
Association President Raif Turk said almost 30 businesses had 
been established under 5084 and predicted a halt in progress 
under the current legal regime. Southeast Industrialists and 
Businessmen Association President Sahismail Bedirhanoglu said 
Diyarbakir deserves extra support given its ranking of 63 out of 
81 provinces in terms of socio-economic development. 
 
MERSIN CHAMBER OF COMMERCE TO HOST PROMOTIONAL FAIR IN DAMASCUS 
 
Aiming to develop trade with new markets and neighboring 
countries, Mersin has set its eyes on Damascus.  Mersin Chamber 
of Industry and Commerce President Serafettin Asut said he is 
organizing the first "Mersin Days" promotional fair in Damascus 
in February 2010.  A special committee has been convened to 
identify the market potential and Syrian import opportunities. 
The fair will advertise the cuisine and natural resources of 
Mersin province, as well as economic advantages such as the port 
and Free Zone. 
DARNELL