Turkish president OKs liberalization of railway

ANKARA - Anatolia News Agency

President Abdullah Gül has approved a draft code on the railway liberalization that allows private sector operations and investments in state-dominated railways. REUTERS photo

Turkish President Abdullah Gül has approved a draft law on the liberalization of Turkish railways by allowing private sector operations and investments in state-dominated railways.

President Gül sent the law to the Turkish Prime Ministry for publication in the Official Gazette.

The draft code, which was passed in the Grand National Assembly of Turkey (TBMM) last week, will permit public and private legal entities and firms to build their own railway infrastructure and operate them as well as to manage trains on the national railway network.

Under the new scheme the functions of Turkish State Railways (TCDD) are differentiated by the establishment of a company under the name of the Transport AŞ for train management units and the transformation of the current TCDD into an infrastructure operator.

State to remain authority over infrastructure projects

TCDD will have the authority over infrastructure operations on the national railways network, which would be transferred to its responsibility by the state.

The law also empowers the Ministry of Transport, Maritime Affairs and Communications to grant operating rights to private companies to build and operate rail lines to carry freight and passengers.