“I am expanding my business with other people’s money”

Hamdi Akın has been one of the most successful entrepreneurs of modern times. In recent years he has come to prominence through the investments he has made in various sectors. He has entered a large number of sectors, from airports to vehicle testing stations, tourism and real estate development. He says that in the future he will evaluate new opportunities. “We may be an example of the type of entrepreneur who chases down opportunities,” he says. He adds that he began to grow with “the bank’s money” and that this will continue.

If anyone asks who has been the Turkish businessman who has come most to prominence in recent years then there is no doubt that most people would reply Hamdi Akın. Nicknamed the ‘Lord of the Ports’, Akın has always caught the eye with different businesses. His company Akfen was one of the first few companies in Turkey to be involved in natural gas. Since the turn of the century Akın has come onto the agenda with different businesses, such as TAV and vehicle testing stations and his entrepreneurial
methods have always attracted attention.

Akın, who created Akfen Holding with the outside-financing model, has not always been lucky. After the results of the tenders for Mersin Port and the vehicle inspection stations were announced, Hamdi Akın had to wait for a long legal process to be concluded, and he says that he was affected psychologically and the growth of Akfen was set back by 2-3 years. Akın says: “At the time we took a break, we were the privatization programme’s best client. We did not bid for anything.”
Now Hamdi Akın and his team are preparing for the tenders for Derince Port, Sabiha Gökçen Airport and Petkim, which are expected to be sold before the 22 July elections. “If we win one of these then we will need to stop and catch our breath,” says Akın. “I don’t know when new opportunities will appear or what they will but we may be an example of the type of entrepreneur who chases down opportunities that appear. Perhaps for that reason we have no plan.”

Akfen Holding Board Chairman Hamdi Akın is this month’s guest in the CEO’s Room. We talked to him about how he does business, the business model he follows and the secretes of his success.

* Why is it always you who scents new profitable business? What is different about you?
I don’t think that I have developed any special ability. I am a mechanical engineer. After I graduated from school I immediately began to work at my profession. I manufactured radiator boilers in line with my 4-5 year diploma project. But I did not stop there. I also engaged in trade. I used financing from the bank. After 2-3 years in trade I began in construction. Later construction became a routine business for me and I entered other branches of business. When natural gas first came to Turkey, Akfen was one of the first firms to become involved in the natural gas business and in those days no one was even talking about natural gas.

* You held a very successful public offering. You received a substantial amount of money. Will it be TAV that sends Akfen soaring?
We didn’t receive such a huge amount of money. We put all of the money back into the company. The reason we did this was to increase the value of the company. I mean, together with Tepe we have a 52 percent share. But, because the market value of the company is so high, our shareholding doesn’t mean anything. We can’t take it whenever we want. Because in addition to TAV, people also invested in us, in our characters. As a result, we have some responsibilities. These shares are not something which can be easily converted into cash. In any case, we are not thinking of doing anything like that. But the vehicle testing stations, the management of the port of Mersin and the hotel business are all re important assets for Akfen. Today Akfen is preparing public offerings of its companies. I think we shall do this in 2008-2009. I think they will be of significant volume.

* If it wasn’t for TAV, could Akfen have been the size it is today?
At the moment TAV is the largest company in the group. But if it hadn’t been TAV we would have had other assets. We would definitely have created something. Now with Mersin Port we are trying to create a different form of port management in Turkey. Together with our partners we shall create a new sector with the vehicle testing stations. The number of traffic accidents in Turkey will fall by 25-30 percent, because this is what the global statistics show, and we shall introduce the criteria of a company such as the German TÜV. We are very happy that we shall contribute this to our country.

* After both the vehicle testing stations tender and the Mersin tender you had to wait for a legal ruling. Did this have an effect on you?
It put back the growth of Akfen by 2-3 years. Because we bought them in 2004 and 2005. If we had not paid the money and taken control of them in those years, then those companies would have gone public and today we would be shareholders in 3 or 4 companies which were being traded on the Istanbul Stock Exchange. We took a break at a time when we were the privatization programme’s best client. Afterwards we didn’t bid for anything. Because whether not these were going to happen was important both for us and from the perspective of the banks which had given us the money.

* So, what is next? What will you do?
As a good client of the privatization administration we are preparing for Petkim and Derince Port. We shall bid for those tenders. As you know, TAV is interested in Sabiha Gökçen Airport. As a result, there are three major tenders before the election. We are interested in all three. In any case, if we get any one of them then we shall need to take a deep breath. I don’t know when new opportunities will appear or develop but we may be an example of the type of entrepreneur who chases down opportunities as they appear.

Ebru Fırat
[email protected]