15 “no more true” beliefs keeping away from railways

Here are 15 wrong beliefs that keep companies away from railways:

Railway cannot be the main transport mode, vessels and trucks are.

Not in China, Russia, USA and Australia where share of railways in freight is more than 40%.

Market Share of Railway in Freight, Graphic: AAR
Market Share of Railway in Freight, Graphic: AAR

Railways always make loss.

Not everywhere. Freight transportation in USA is done completely by private sector, and they’re making money from railways. German Railways (Deutsche Bahn) is also one of the companies to make profit.

Railways always need support, not trucks.

Actually, the infrastructure of trucks are done by governments free of charge. The support to railways are mainly to construct and maintain infrastructure. The cost of problems to be solved because of trucks like congestion, accidents and repairs should be taken into account as well.

Railways are slowly, could not keep up with the development.

Not really. Railway freight had dropped by 50% in USA in last 30 years. High speed train technologies developed fast. Electric cars are still exception, but electric locos are almost standard.

Almost no transportation by rail in Turkey.

Despite many problems, 25 million ton is being carried by railways in Turkey annually. Although no connection to Asian side, each week, equivalent to 450 truck loads are carried by trains to Europe. Railway share is 4% in Turkey, and is planned to be increased to 15% in 10 years.

Roads have priority in Turkey, that will not change.

The investment budget of railways was 400 million TL in 2006, it’s 2,3 billion now. In 2010, for the first time since 1950, the budget for railways exceeded budget for roads. 70% of the railway network is renewed.

Private sector is not investing in railways.

There are 3000 wagons owned by private companies in Turkey. More than 20% of transportation is done by these wagons. (6 million ton in 2012).

Incentives for railways are not enough.

In the new “incentive program”, railway investments in any region are supported as if they’re in 5th region (the scale is from 1 to 6 where biggest incentives are given to 6).

Written by Onur Uysal

Railway consultant. Owner of RT Media & Consultancy. Founder and editor of Rail Turkey.

One comment

  1. Rails are now important part of all transportation in many countries. The development of rail transportation is continuously growing. Government should come up with more plans to make it better as it helps to increase economy of country and also provide employment to the citizens.

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