Turkey Railway Infrastructure and Rolling Stock Summit
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1 Turkey Railway Infrastructure and Rolling Stock Summit October İstanbul Where is Turkey in railways reform? Dr. Göktuğ KARA Sector Manager for Transport Policy EU Delegation to Turkey
2 Bottom Line of EU Approach The cornerstones of the EU approach to improve the performance of rail transport are:.open and fair access in rail transport to favour competition and create incentives for product innovation and service quality.transparent public service obliations to ensure public benefit.fostering the interoperability of the national networks (and hence international services) through technical harmonisation.develop a common rail safety approach to facilitate market access while maintaining a reasonably high level of safety.develop the trans-european Network for rail
3 Issues to be regulated 1. Market opening 2. Independence of essential functions 3. Management Independence 4. Account separation 5. Licensing (essential) 6. Infrastructure charging (essential) 7. Allocation process (essential) 8. Regulatory body 9. Public Service Obligation (essentiual)
4 EU model Passengers EU model Freight Rail Regulator Rail Regulator PSO State PTO Service plan Private PTO Access agreement MAC IM Infra plan Private CARGO State CARGO Contract Access agreement MAC IM Infra plan Customer Customer
5 What are the problems of railways in Turkey? Low market share Commercial speed, reliability, service quality Low network density, low utilisation Insufficient freight and passenger capacity on core routes between key urban centres Network requires key investments for optimisation Substantial annual loss Obsolete organisational model
6 What has to be achieved with reform A modern rail sector organization to maximize the effects of the State investment program Separation of Infrastructure and transport and introduction of competition Development of modern, reliable, affordable passenger rail transport based on contracts: Excellent HS services for long distance traveling Regional and suburban rail services to support regional development. Development of freight transport by rail: that supports Turkey s logistical sector Supports growth of exporting manufacturing industry. Reliable Infrastructure and maximizing utilization of the network
7 Legislation The Law on Liberalisation of Turkish Railways Decree on Restructuring of Ministry of Transport, Maritime and Communications Regulations on: Rolling stock licensing (draft) Access to infrastructure (draft) Market access licensing (draft) Safety (on-going) Public service obligation (on going)
8 Progress Report 2013 New law on railways liberalisation represents a significant step forward, but falls short of complying with some EU acquis requirements. It does not establish a comprehensive framework of action and the independence of essential functions needs to be ensured. There is still a question mark over the financial and institutional autonomy of the rail regulator (DGRR). A successful opening-up of the railways sector requires the new infrastructure manager to establish national safety systems and effective traffic management capacity. The Turkish State Railways (TCDD) operational losses and method of subsidisation are still a cause for concern.
9 TCDD financing adapted Passenger PSO contract prepared Business BU established Tariff differentiation allowed in 233 Kanun Freight bridge financing Financing system adapted Training institute Freight profitable 2014 Start open access + competition Earliest TCDD capacity management working NWS published TT planning open for private TOC s - April n-1 Safety regulation system Up and running Certification and licensing system working Planning centralized Week planning system Simulation possible Ministry TCDD TURKTREN Training / NOBO / 2014
10 Ministry actions for liberalization To achieve fair competition Set up market regulation: Company Licensing Capacity allocation & train planning Access charging IM role regulation To keep rail transport safe Set up Safety regulation: Company certification personnel and train certification Operation rules Accident investigation and organization IM role regulation
11 TCDD actions for liberalization To achieve fair competition And growth in rail transport To keep rail transport safe Set up IM role and functions: Good planning software and competent planning organization Integrate works in train planning Improve reliability of infrastructure Project planning traffic development Region organization customer and service oriented Prepare CER for multi customer service Set up SMS system per business unit Work with MoT on merging of EU rules, TAT rules and TCDD rules Develop IM safety coordination role and Kaza organization To prepare TCDD Yuk and Yolcu for competition and success: Build Commercial management Yuk: Only profitable transport done Build customer oriented region organization Yolcu work on PSO contract development Improve planning system for efficiency
12 Challenges Hanging on for a real long time (at the hands of incumbent operator) Huge investment needs financing? Reform process needs harmony of DGRR and TCDD: legal and institutional Infrastructure investment needs to be tied to capacity planning State subsidy system to be restructured Freight to be profitable Development of Passenger service PSOs Centralized planning of time table and maintenance works Improvement of safety management Organizational transition and institutional changes Human resources
13 Opportunities for private sector Construction Equipment supply (signal, electrification, rail and rail parts) Business consultancy (train operations and logistics) Train Operations (passenger and freight) Rolling stock leasing New line investments Credit and finance
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