Deregulation of Turkish State Railways Based on Public-Private Partnership Approaches
The railway network is one of the major components of a transportation system in a country which may be an indicator of the country’s level of economic improvement. Since 2000s on, revival of national railways and development of High Speed Rail (HSR) lines are one of the most remarkable policies of Turkish government in railway sector. Within this trend, the railway age is to be revived and coming decades will be a golden opportunity. Indubitably, major infrastructures such as road and railway networks require sizeable investment capital, precise maintenance and reparation. Traditionally, governments are held responsible for funding, operating and maintaining these infrastructures. However, lack or shortage of financial resources, risk responsibilities (particularly cost and time overrun), and in some cases inefficacy in constructional, operational and management phases persuade governments to find alternative options. Financial power, efficient experiences and background of private sector are the factors convincing the governments to make a collaboration with private parties to develop infrastructures. Public-Private Partnerships (PPP or 3P or P3) and related regulatory issues are born considering these collaborations. In Turkey, PPP approaches have attracted attention particularly during last decade and these types of investments have been accelerated by government to overcome budget limitations and cope with inefficacy of public sector in improving transportation network and its operation. This study mainly tends to present a comprehensive overview of PPP concept, evaluate the regulatory procedure in Europe and propose a general framework for Turkish State Railways (TCDD) as an outlook on privatization, liberalization and deregulation of railway network.
Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1132345Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 668
 B. P. Y.Loo, and C. Comtois, “Sustainable railway futures, issues and challenges,” Paperback, Ashgate Pub. Ltd., England, pp. Foreword, 2015
 M. Abramovitz, “The economic characteristics of railroads and the problem of economic development,” Far Eastern Quarterly, 15, pp. 169-178, 1955.
 J. Bauer, T. Bektas, and T. G. Crainic, “Minimizing greenhouse gas emissions in intermodal freight transport: an application to rail service design,” J. of the Operational Research Society, vol. 61, pp. 530-542, 2009.
 “Urban and national rail development in Turkey, final report,”2015.
 G. Knieps, “Privatisation of network industries in Germany: A disaggregated approach,” CESifo Working Papers, No. 1188, 2004.
 V. Pham, “The liberalization of rail transport in the European Union,” Economic Honors Papers, Paper 10, January 2013.
 V. Cuttaree, and C. Mandri-Perrott, “Public-Private partnerships in Europe and Central Asia: designing crisis resilient strategies and bankable projects,” The International Bank for Reconstruction and Development, The World Bank, Washington D.C., 2011.
 G. A. Hodge, and C. Greve, “Public-Private partnerships: An international performance review,” Public Administration Review, vol. 67, Issue. 3, pp. 545-558, May 2007.
 G. A. Hodge, and C. Greve, “Public-Private partnerships: Governance scheme or language game?” Australian Journal of Public Administration, vol. 69, pp. s8-s22, March 2010
 J. Rall, J. B. Reed, and N. J. Farber, “Public-Private partnerships for transportation, a toolkit for legislators,” The National Conference of State Legislators, The Forum for America’s Ideas, 2010.
 A. Quium, “A guidebook on Public-Private partnership in infrastructure,” UNescap, January 2011.
 European Union Commission, “Guidelines for successful Public-Private partnerships,” Brussels, February 2003.
 F. Medda, “A game theory approach for the allocation of risks in transport Public-Private partnerships,” Int. J. of Project Management, vol. 25, pp. 213-218, 2007.
 B. Flyvbjerg, M. Skarmis, and S. Buhl, “How common and how large are the cost overruns in transport infrastructure projects?” Transport Review, vol. 23, pp. 71-88, 2003.
 L. Trujillo, E. Quinet, and A. Estache, “Dealing with demand forecasting games in transport privatization,” Transport Policy, vol. 9, pp. 325-334, 2002.
 A. Estache, “Privatization and regulation of transport infrastructure in the 1990s,” The World Bank Research Observer, pp. 85-109, 1990.
 M. Balling, “Foreign exchange exposure in private investment projects,” Int. J. of Project Management, vol. 1(2), pp. 71-75, 1983.
 World Bank, Global Development Finance, Washington D.C., 1997.
 S. C. Ward, C. B. Chapman, and B. Curtis, “On the allocation of risk in construction projects,” Int. J. of Project Management, vol. 9, pp. 140-147, 1991.
 L. Bing, A. Akintoye, P. J. Edwards, and C. Hardcastle, “The allocation of risk in PPP/PFI construction projects in the UK,” Int. J. of Project Management, vol. 23, pp. 25-35, 2005.
 B. Szekely, “Progress of liberalization process of the railways in Germany and France,” Lappeenrannan Teknillinen Yliopisto, Tuotantotalouden Osato, 2009.
 G. Alexandersson, and S. Hulten, “The Swedish railway deregulation path,” Review of Network Economics, 2008.
 K. Barrow, “EC unveils draft forth railway package,” Int. Railway. J, 2013.
 U. Emek, “Turkish experience with public private partnerships in infrastructure: Opportunities and challenges,” J. of Utilities Policy, vol. 37, pp. 120-129, 2015.