The passenger trains of TCDD may be operated by private companies beginning with May 2018.
The legislation published today sets the rules of running passenger trains which are not commercially sustainable.
According to this new legislation, these lines will be run by TCDD and Transportation Ministry will pay the loss. By May 2018, the operator will either be selected by tender process, or can even be selected directly from the market.
TCDD’s expenses are far bigger than the income. In 2015, TCDD’s income from passenger trains was TL 226 mn (€ 70 mn) where expenses were more than TL 1.22 bn. Thus most of the main line and regional trains (except high speedt trains) of TCDD are going to be evaluated in this scope.
If a private company gives an offer less than TCDD, the change in passenger trains may even be faster than freight and we’ll see many private trains all over Turkey.
Legislation allows companies to make profit of 10% within this scope of public service.
Cover Photo: Jeff Hawken ©