749 - Omsan treni

Who’ll do what in railways? – Private operators


As liberalization starts, everybody keeps their eyes on private train operator candidates.

The companies such as Korfez Tasimacilik, Omsan Logistics, Kale Nakliyat, Ar-Gü and KLN Logistics are expected to start as private train operators in Turkey very soon.

Why do these companies pioneer the liberalization? Can they compete with huge and experienced TCDD Tasimacilik and take some share from the rail freight market?

The common thing about these companies is that they control some of the rail freight directly or indirectly. Korfez Tasimacilik  is a subsidiary of Tupras which has huge oil transport on rail. Omsan Logistics is the logistics company of Oyak group. The biggest rail load of Turkey, iron ore from Divrigi to Iskenderun, is between two companies of this group. Kale Nakliyat and KLN Logistics are logistic companies of Kale and Kolin group which have regular transport on rail. Ar-Gu, the largest fleet owner and most experienced staff is carrying containers of Arkas Line.

Therefore, these companies will not look for any load at the beginning. The only thing they have to achieve is to achieve similar tariff with TCDD Tasimacilik.

But, why would the clients prefer private operators for the same price instead of TCDD Tasimacilik which has a huge fleet and wide capabilities? Here below are some advantages private operators can offer:

Value added services

Rail services are limited by terminal to terminal traction in Turkey. Private operators can offer additional services like checks, reporting, first/last mile trucking, securing.

Payment term

Payment has to be done before goods are unloaded in Turkey, no exception. Private operators may offer payment terms like one month, which is almost the standard in other modals.

Speed

Railway is known as slow in Turkey. Private operators, if organized well and minimize the waiting on way, can offer shorter transit times, sometimes even shorter than truck.

Guarantee

You don’t feel very comfortable in railway for the cases like damages, transit time, wastage. Procedures are long, complicated, there are exceptions. Private operators may offer guarantees specific to client.

Cover Photo: Omsan Logistics ©

Written by Onur Uysal

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

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