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Turkish gov't to privatize railways

by Barış Şimşek

ISTANBUL May 21, 2016 - 12:00 am GMT+3
by Barış Şimşek May 21, 2016 12:00 am
The railways that will open to private sector after June 21 shall move towards a more efficient and more productive transportation system through privatization. After the required restructuring process is completed, Turkish State Railways (TCDD), the railway infrastructure manager, will publish a network statement on issues including the train operating lines, the features of these lines and the access fees of the train lines. TCDD will also reserve the usage of the train line to firms for a year on the condition that the private sector fulfills the necessary conditions.

Investing a total of TL 50.1 billion in the railway sector between 2003 and 2015, the government aims to start a new era in railway management with a $55 billion investment planned to be made as a part of the 2023 goals. In this context, the latest switch in railway management will be actioned on June 21. The TCDD will be restructured as the railway infrastructure operator and TCDD Transportation Inc. on June 21 as in line with the Law regarding the Liberalization of Turkish Railway Transportation, put into effect by the Transportation, Maritime Affairs and Communications Ministry on May 1, 2013.

Within the scope of the access agreement, the usage of train lines in railways will be reserved for a year. No distinction will be made between the passengers and loans regarding the reservation of the train line. The railway will be granted to the train manager with a right to operate at a higher price than that specified in the network statement. Reservation prices for the train lines may change according to the routes. While the estimated prices are determined by the infrastructure manager, the access charges of the train lines which will be operated in an international railway network and the line's maintenance, repair and operation costs will be taken into consideration.

The private sector will have to fulfill some conditions in order to conduct railway transportation. According to the Directorate General of Railway Regulation, firms will have to register the vehicles they use and also have to get a passenger and load-carrying certificate. The operators will have important obligations regarding security as well.
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