Railway Companies

TCDD and BDZ signed RIV-Free agreement

Turkish State Railways (TCDD) and Bulgaria State Railways (BDZ) signed RIV-Free agreement and accepted not get RIV fees from TCDD/BDZ wagons mutually.

The agreement will be valid from 1st of June 2015 until further notice. With these agreement, BDZ will not pay RIV fees for TCDD wagons on its territory, and TCDD will not pay either for BDZ wagons in Turkey.

RIV fees are about 20-40 €/wagon-day depending on the type of wagon.

Usage of TCDD and BDZ wagons is willing to be encouraged in international traffic with RIV-Free agreement. Furthermore, both railway undertakings will keep the empty wagons of counterpart for loading, instead of sending them empty asap to get rid of RIV fees. Thus, efficiency will increase for both parties.

Clients will have the advantage not to pay high demurrage costs in case they keep the wagons of one undertaking in the terminal of the other one. Demurrage cost in Turkey for RIV-paid wagons is between 25-52,5 €/wagon-day.

On the other hand, most of the wagons in international traffic to Turkey belong to Germany, Austria, Czech Republic and Poland. Railway loads between Turkey and Bulgaria is a small portion of the international railway traffic.

Most of the railway undertakings in Europe have RIV-free agreement between each other. This causes better rates with European wagons compared with TCDD wagons. Thus, as getting prepared for competition with private train operators, TCDD is expected to widen this kind of agreements.

Categories: Railway Companies

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