The passenger trains which are making loss will continue to be organized by TCDD Tasimacilik until the end of 2020.
Currently all passsenger trains are making big loss, but they are subsidized by goverment with an amount that TCDD Tasimacilik can make profit of them. These subsidies now are planned to be given to TCDD Tasimacilik until the end of 2020.
According to the legislative proposal, the deadline of subsidies for the passengers trains making loss will be postponed from May 2018 to January 2021.
According to the legislation in force, as of May 2018, TCDD Tasimacilik should stop any passenger service making loss, but goverment will then have the right to announce the services to continue and open tenders for them. The new operator of that train would be the company which offers lowest amount of subsidy.
This law ensures the profitability of the passenger train, which eases the enterance of new players to passenger transportation. With this proposal, the competition in passenger trains will be postponed to 2021.
The legislative proposal is expected to be accepted shortly by Turkish Parliament.
Cover Photo: Onur Uysal ©