Railways Customized Countries Satisfied

Railways Customized Countries Satisfied
The Republic of Turkey State Railways (TCDD) privatization agenda. What about the world railways?

"Liberalization of Railway Transport of Turkey" bill Turkey Grand National Assembly (Parliament) was presented and included in the agenda. Transport, and Communications Denizlicik draft prepared by the Ministry of the Republic of Turkey State Railways (TCDD) recommend having the task of making the traffic regulations and infrastructure on the national rail network. The operation of the roads will be established by Türktren A.Ş. will be released to other free entrepreneurs.

Since 1990's, the privatization of railways, which show up in Europe and the world, is a process encouraged by the European Union. The effective role of highways in freight transport caused the railways to lag behind in this area. Each country's implementation of its own rail system and rules prevented being preferred over roads. However, due to the rising oil prices and being able to carry more cargo at once, there should be an investment in train transportation. In 1991, the EU directive 91/440 suggested that infrastructure and train operations should be managed by independent companies on railways. It was aimed at private companies to use railways more actively under competitive conditions. In this context, full or partial privatization was carried out in many countries of Europe or regulations were made in this context.

However, it can be seen that many of the privatization experiences, both in Europe and in the world, do not work in the desired direction. It is necessary to draw attention to the examples that go through privatization and suffer from it, but also prevent themselves from this process and have achieved significant growth by the state.

Great Britain

After the Second World War, Britain's four major private railway companies went bankrupt, paving the way for the nationalization of railways. British railways followed a successful chart as one of the world's leading profitable railroads until the 1980s, with state subsidies provided in the post-war crisis environment. Railroads also got their share from the aggressive privatization attitude of the Conservative Party within the framework of liberal policies since the 80s. In 1993, state railways were divided and transferred to 25 private companies.
After the privatization, a doubling in the number of passengers was observed. However, the cost of this increase was serious. In 431, more than 2006 billion pounds were allocated to railways, which transferred 6 million pounds from the state budget a year before privatization. This draws attention as a situation against the rationale of privatization. The increase in ticket prices could not be prevented. Although London is not the most expensive city in the world, the £ 54 ticket of the train operating between London and Liverpool has been determined as the most expensive ticket in the world for the same distance.

While the accidents continued to increase, the Hartfield accident that caused the death of four people in 2000 caused the bankruptcy of the Railtrack company, which undertook the infrastructure operation, and the nationalization of the state. In the survey conducted last year in the country, 51 percent of the public expressed their opinion about the total expropriation of railways. The privatization of British railways, also called “big train robbery”, is one of the most unsuccessful privatization attempts in history.


The private German railway companies, which gathered on a single roof after the First World War, were expropriated by the state before the Second World War. The railways, which continued to exist as two state-affiliated institutions in the post-war East and West Germany, merged in 1994 after the merger of the two countries under the name Deutsche Bahn AG. DB AG operates with its own subsidiaries in areas such as infrastructure, freight transportation, regional and international passenger transportation.

The draft law on the privatization of Deutsche Bahn came to the government's agenda in 2007. In the draft, it was decided that only 25 percent of the railways will go public and 51 percent of the shares will be kept under state control. With the income to be obtained from here, it was aimed to improve the railway network and increase the service quality. However, the value put on Deutsche Bahn, which is already the world's first with 2 billion passengers it carries annually, and the second in the world with its 230 thousand employees, was less than expected. The partial privatization of the railways, which is thought to have a value of 200 billion Euros, was canceled on the grounds that it would be sold at a price well below its value due to the economic crisis.


The French government, which bought 1938 percent of the railway company owned by the private sector in 51, increased its share to 1982 percent in 100 and nationalized the railways. SNCF (Société National de Chemin de Ferré), a railway company in the early 90s, achieved great success with the help of monopoly and developing high-speed train technology. Not being profit-oriented made it possible to fulfill social responsibility and to sell tickets to students and children at a low price. At that time, France had become the cheapest in Europe at high speed train ticket prices.

Within the framework of the European Union's sanctions, RFF (Réseau Ferré de France) was established by the government in 1997 to look at the infrastructure of the railways, and the SNCF was commissioned to look only at the train business. This meant that the infrastructure expenses item of the SNCF was issued. However, rising infrastructure costs also pushed RFF to double the cost of road use. SNCF, whose profits have been reset and even forced to receive substantial assistance from the state, has begun to gradually abandon its social role and to disable some high-speed train lines as it does not bring profits. Public opinion polls for the complete privatization of railways result from the occasional SNCF employees going on strike. Nevertheless, the French state railways SNCF is regarded as one of the most successful railway companies in Europe today, with its 32-kilometer-long lines, 180 employees and a 95 percent non-turnover rate.


In Argentina, which struggled with hyperinflation, high current account deficit and reserve shortage in the 80s, the neo-liberal reforms of Prime Minister Carlos Menem caused the privatization of the electricity, water, telephone and gas networks. It was not long before the railways got their share from the situation. The government, which cut maintenance and rehabilitation costs, caused state railroads Ferrocarilles Argentinos to lose $ 1990 billion in 1,4. The 35-kilometer railway line was divided and sold to six private entrepreneurs. The companies would be responsible for both business and infrastructure.

Although the quality of service seems to be good in the early days, companies have avoided investing and increasing capacity in line with the increasing needs. Automobile companies have started to buy lines at lower prices than they should. The closure of state railways paved the way for private companies to be profit-oriented in determining price policies. This left agricultural workers dependent on the railways in the transportation of their products. Even after the 2001 crisis, it was not possible to re-expose the railways. In the 2012 train crash in February, the 50 lost its lives and it was revealed that the train company had neglected the security tests for nearly a decade, and that the government did not take the necessary measures despite reporting the government in 2008.

New Zeland

In the privatization wave initiated by the New Zealand government in 1993, railways were sold to the American Wisconsin company for $ 328 million as a whole. This initiative was the first sale of a railway to a company as a whole. The Wisconsin company, which sold the money-bearing parts of the railroad and closed the lines with few passengers, broke records of profits and added value to nine in the stock market. However, in this process, the company neglected to invest and successive accidents forced the state to nationalize the railways in 2003. The government, which later sold its passenger and freight transport divisions to Australian Toll Holdings, nationalized the remaining two divisions in 2008, after this company failed to keep its promises. However, the government, which expropriated both times the price of twice the sale price, suffered greatly from the privatization business.

Source : I www.habervesaire.co

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