Private Companies Can Do Freight and Passenger Transportation on Railway

The Ministry of Transport and Infrastructure, responding to the proposal of CHP Nurhayat Altaca Kayışoğlu, announced that public or private legal entities can operate freight and passenger trains in the national railway network.

In the reply given by the Ministry of Transport and Infrastructure to the questions of the CHP deputy who brought the preparations for the privatization of the Turkish State Railways to the Assembly's agenda, it was stated that "Public or private legal persons can operate freight and passenger train in the national railway network".

The Republic of Turkey State Railways as also takes place in the Court of Auditors report (TCDD), indicating that continuous loss meat that through privatization attempted calculated according to the citizens of this loss CHP Bursa deputy Nurhayat Altace KAYIŞOĞLU, subject moved to the agenda of the Parliament and the Transport and Infrastructure Ministry, at the proposal prepared by the responses to the request he had asked questions:

By the General Directorate of Railway Regulation,

• In line with the need, the “draft regulation on the selection of public service obligations in railway passenger transport and the regulation, implementation and audit procedures and principles of public service contracts” has been prepared?
• 2 Does the private sector authorization process continue in passenger transportation, besides the authorization of the private sector train operator in the field of freight transportation, does not mean that the freight and passenger transportation will be privatized?
• What is the reason and reason for TCDD's preparations for transferring freight and passenger transportation activities to the private sector, identified with the Republic and for the sake of its 10th Anniversary?
• TCDD, in the process of privatizing freight and passenger transportation activities, "Ecorys Researchan Consulting Ltd." company received consultancy service? How much was this company paid for the service received? Is the service between TCDD and the company in question still?
• At which stage is the process for the privatization of passenger transport? Which line or lines will be privatized in the first place? What is the anticipated date for the transfer of passenger transport to the private sector?
• According to the draft prepared; To what extent is it compatible with the principles of public interest and public service, “Despite the fact that the infrastructures are covered by the public budget, the determination of the business according to the demands of the sector, the contract observes the profit rate of the companies, the companies will be given 30 percent advance and the insurance will be paid by fatal accidents”.
• How will the transfer of passenger transportation to the private sector affect TCDD employees and passengers? ”

In response to the questions in the CHP proxy proposal, the following statements were included in the response given by the Ministry of Transport and Infrastructure:

The operation of the “Public Service Obligation in Railway Passenger Transportation Regulation” published in the Official Gazette dated 20/08/2016 and numbered 29807 is a regulation that was prepared and published in order to support non-commercial passenger trains from the Ministry's budget resources.

In the draft regulation prepared; Upon anticipation of the contract, the written request of the public service agent, the same amount and the letter of guarantee for the same amount of advance will be received, provided that the advance is not exceeding 90% of the contract price, provided that the advance is not exceeding 30% of the contract price, the amount of the advance letter of guarantee is given. Provisions for the willing public institutions and organizations, whose capital is not entirely public, cannot be paid, and their provisions have been added.

On the other hand, public or legal persons willing to become railroad train operators are obliged to carry out the necessary insurance procedures in order to have a certificate of authorization. Otherwise, there is no possibility to be neither a freight nor a passenger train operator. The transfer of passenger transportation to the private sector is not in question, as well as the public and the private sector, as well as the aviation industry, ensures that citizens are served in a competitive, fair and transparent environment.

6461 titled "Turkey's Law on the Liberalization of Railway Transport, to the Purpose and Scope titled Article 1) c of the paragraph and Article 6) shall, pursuant to, provided the requirements of public or private legal entities freight and passenger train operators to authorization by national rail will be able to operate freight and passenger trains by considering commercial risks on their network. ”

Evaluating the Ministry's response, CHP Bursa Deputy Nurhayat Altaca Kayışoğlu pointed out that the advance payment is limited only to the private sector and stated that the fact that not giving advance payment to public institutions and organizations with full public capital will negatively affect the formation of the desired competitive environment.

Emphasizing that most of the passengers will be affected by this situation, Altaca Kayışoğlu pointed out that TCDD employees will be adversely affected by the maintenance and repair of lines planned to be transferred to the private sector, and that they will be followers of the process.