Turkey to open state-controlled rail network to the private sector

Turkish parliament is expected to consider a draft bill to open Turkey’s state-controlled rail network to the private sector.

If the bill is passed in the Grand National Assembly Turkish State Railways (TCDD) will be restructured into a corporate entity in control of the country’s 12,000 km-long railroad network and related infrastructure.

Moreover, private companies appointed by the Ministry of Transport will be granted the right to build and operate railroads to carry freight and passengers.

If the draft is passed TCDD will continue to function as a railway operator for certain train lines and will have its share of the state budget for the maintenance and renovation of the railroads. The Ministry will handle the appropriation of the immovables should the private companies choose to build their own railroads, on the condition that the interested party bears the appropriation cost.

It is reported that Turkey has intentions to increase the use of railways for both cargo and passenger transportation. Accordingly it has plans to to add about 15,000 km of track to its existing network over the next 10 years.

If the plan comes to life Turkey will enjoy a much more rational Picture in which railways will account for 15 percent of the country’s passenger travel and 20 percent of the freight transportation by 2023.

09.03.2013
SOURCE: MEDIA