Railway Transport Association

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Railway Investments in TURKEY İbrahim ÖZ Chairman Railway Transport Association Turkish Railway Transport Association was founded in July 2006, with the aim of promoting railway transportation according to the needs of Turkey and to increase the share of railway transportation in Turkish Transport Market. 1

Our Aims: Providing Vocational Educations, Performing and supporting necessary researches for the railway transportation sector, Making a contribution to the develeopment of intermodal transportation between railway, highway and sea transportation, Contributing to the integration of Turkish Railways with the international railways, Creating an awareness for the use of the railways due to being friendly enviroment, being safe and decreasing petroleum consumption, Contributing to the preperation of regulations for the evolving Turkish Railways Sector. Our Members GÜVENOK LOJİSTİK 3S NAKLİYAT HOŞCAN LOJİSTİK ABS ALÇI ACARLAR VAGON ILGAZ İNŞAAT ADOÇİM İÇDAŞ AKYAPI LOJİSTİK İNCİ LOJİSTİK ALIŞAN GROUP KALE NAKLİYAT ARGÜ KINAY GRUOP ASKAY MAKİNE KNAUF ASLAN DENİZCİLİK KONSPED ATA KARBON KÖKTAŞ LOJİSTİK BATI RAIL LATEK LOJİSTİK BORUSAN LOJİSTİK LİMAK İSKENDERUN PORT ÇELEBİ BANDIRMA LİMANI LOJİSTİK 26 DB SCHENKER ARKAS MARS LOGISTICS DEMİRYOLU LOJİSTİK MEDLOG LOJİSTİK EKOL LOJİSTİK MSP MERSİN PORT EKSPERTREN ESRAY MOS LOJİSTİK ETİ LOJİSTİK OMSAN LOJİSTİK GÖK YAPI ORAYSAN GÜNAYDIN GROUP ÖZNAK RAYKAM RAYKENT RAYSER RAYVAG RC MÜHENDİSLİK REYSAŞ RİNAK LOJİSTİK RİNOTRANS SAMSUNPORT SARP HAVACILIK SDV HOROZ LOJİSTİK SEDA İNŞAAT SERVİCEXPRES SOLMAZ NAKLİYAT TLS GLOBAL LOJİSTİK TURKON TÜPRAŞ UPM VAKO YAPIRAY 2

TURKEY and Railways High Speed Train Marmaray Project TURKEY and Railways The history of railways in Turkey started from the Ottoman Empire, The first railroad was built in 1856 in Turkey 130 km long (İzmir-Aydın) (30 years after the first railroad in United Kingdom) The first railroads were built by the foreign companies within the concessions provided by the Ottoman Empire. 3

TURKEY and Railways Railway Transportation in Turkey had been neglected since 1950 to the beginning of 2000 s and lost its competitiveness against other modes of transportation Railways became a government policy in the last years. After 60 years, the investment for the railroads increased. TURKEY and Railways Today, the Turkish railway transportation sector has a capacity of more than 27 million tonnes per a year. With the economic growth, the demand will be 200 million tonnes. 4

Strategic Location of TURKEY TURKEY and Railways today Turkey has more than 12.000 km of railway lines today. The aim for 2023 is to increase these lines to 25.000 km. Turkey has 888 km of high-speed railway lines(ankara- Eskişehir, Ankara-Konya, Ankara- İstanbul [opening within 2014]) Turkey provides railway connections between Beijing and London with Marmaray project (Old Silk Road) 5

St. Petesburg Moskova Samsun-Kavkaz Kars-Tiflis-Bakü Kars-Nahçivan-İran Bandar Abbas Kurtalan-Irak The mainlines surrounding Turkish Railway Sector Railway Investments in TURKEY MARMARAY Project which is connecting Asia and Europe opened in October 2013. Third Bosphorous Bridge in İstanbul is under construction that will provide service for both road and rail vehicles. New high speed lines are under construction to connect İzmir, Kayseri, Sivas and Bursa. Çandarlı Port which will be listed in the biggest 10 ports of the world with railway connection will be tendered in 2014. 6

Railway Investments in TURKEY Renovations of all existing railway lines continue. 10.000 km of new high speed railway lines to be built. 4000 km of new conventional railway lines to be built. 90 High Speed and Very High Speed Train Sets to be purchased Cities with more than 500.000 population will have Light Rail Train Systems. Railway Investments in TURKEY The government obligates investors of the train set tenders to %51 percent of local production. GE, Hyundai Rotem and CSR have been started their investments Siemens, Alstom, ABB, Bombardier are searching for investment opportunities in Turkey 7

Liberalisation of Railways in TURKEY The regulations for the liberalisation of the Turkish Railway sector has been accepted on May 2013 In practice, the Turkish Railway sector is still in a transition period and open market competency is valid for all modes of transportation except the railways. Turkish Railway transport sector is still waiting for the application of the liberalisation regulations Liberalisation of Railways in TURKEY Since the foundation of the Republic of Turkey, the railways by means of freight and passanger transportation is controlled with the monopoly of Turkish Railways (TCDD) With the new regulations, the infrastructure and transportation departments of the state owned Turkish Railways will be devided and two new companies will be formed. 8

Liberalisation of Railways in TURKEY The Transport company (TCDD) will compete with the private companies. (After the protection period for five years) The infrastructure will be controlled by the Government owned company, but state owned companies and the private companies can also build and operate the infrastructure with the necessary permissions. Liberalisation of Railways in TURKEY The liberalisation of the Turkish Railways will have a positive effect for our country and for the sector that we are representing to provide the necessary competency between railway transport and other means of transport. Within the environment provided by the liberalisation of the railways, possible collaborations between the state owned companies and the private sector will empower the sector and help us to reach our goals. 9

Railways is Our Future.. 10