909 - Freight wagon - OnurRailway Companies

Private fleet ownership loses its charm


Private freight wagon ownership loses its charm though having carried one third of all rail freight in Turkey last year.

Private wagons are still on the top among allprivate invetments in railway transportation. There are about 4000 privatefreight wagons which have a total market valume over TL 500 mn. Last year, one third of all rail freight was carried by private wagons.

Private freight wagon ownership had developed very fast since 2005 with the great support of TCDD, but not any more. New investments stopped, number of private wagons dropped last year, no new enterance to the market.

Here are the leading factors:

Discount for private wagons fall down

TCDD used to make 45% discount on tariff till 2006. This much amount provided fleet owners to organize transport even under TCDD tariff. This discount is now 35%, and is expected to decrease to 30% innear future.

Maintanance costs increase

Cost of fleet ownership increased. New regulations force owners to work with ECMs. New standards increase the maintanance costs. Revision cost of TL 25-30k, sharp increase in “TCDD repair tariff” all make life harder for owners.

Freight wagons are more expensive

TSI standards increase the production costs of freight wagons. Certification process costs much and import is restricted. Thus it’s too expensive to buy a new type wagon. It’s not possible to import 2nd hand cheap wagons, it all did in 2000s.

TCDD Tasimacilik starts to compete

Though TCDD Tasimacilik is still giving publicservice, now the company is trying to be also profitable. Different than old times, the company now tries to get in contact with clients, offers integrated logistic solutions, makes discounts for long term agreements. TCDD Tasimacilik acts faster than private companies in special freight wagons like 90’ container wagon, pocket wagon, car wagon.

Tariff pushes hard

TCDD Tasimacilik does not make any change in tariff despite the sharp increase in exchange rates. The tariff of TCDDTasimacilik is the upper limit for fleet owners, thus they could not make any increase during this period.

Private operators not started

Private train operators might have created new possibilities and alternatives for fleet owners with different tariffs and solutions, but couldn’t. Current two private operators have limited their activities with their own loads carried with their own wagons on two routes.

Cover photo: Onur Uysal ©

Your questions/comments

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.