UKTI - Railway sector in Turkey, 2011 (ENG)

This is a uk trade and investment document

HELPING YOUR BUSINESS GROW INTERNATIONALLY

RAILWAY SECTOR
FACT-FINDING MISSION TO TURKEY
MAY 2011

Produced by:
Bob Docherty,
International Business Adviser,
Railway Sector, UKTI,
No 1 Victoria Street
London, SW1H 0ET

© Crown Copyright 2011
You may re-use this information (not including logos, images and case studies) free of charge in
any format or medium, under the terms of the Open Government Licence. To view this licence visit
www.nationalarchives.gov.uk/doc/open-government-licence/ or write to the Information Policy Team,
The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk
Where we have identified any third party copyright information you will need to obtain permission from
the copyright holders concerned.
Any enquiries regarding this document should be sent to us at: enquiries@ukti.gsi.gov.uk
or telephone: +44 (0)20 7215 8000 (Monday – Friday 09.00-17.00)
This document is also available from our website at www.ukti.gov.uk

CONTENTS
1 Purpose and Methodology 2
2 Executive Summary 3-5
3 Brief History and Milestones 5-7
4 Ministry of Transport and Communications 8-13
Rail Structure and Organisation
5 TCDD – the State-owned Mainline Rail Company 14-24
6 Urban Railways 24-33
7 The Turkish Contracting Sector 34-35
8 Rail Associations and Academia in Turkey 35-37
9 Privatisation and Inward Investment into Turkey 37-38
10 Eurasia Rail Exhibition 39
11 Doing Business in Turkey 40-41
Appendices
I Case Study – The Marmary Crossing 42-45
II Case Study – High-Speed Rail Project 46
III TCDD Subsidiaries 47-51
IV UK and Turkish Business Sectors in Detail 51-52
V Overview of Turkey 52-57
ISPAT – the Turkish Inward Investment Agency
VI Organisations Visited 58-59

1 PURPOSE AND METHODOLOGY
This report has been created to provide UK companies with an introduction to the rail sector in
Turkey. It explores the expansion of both urban and high-speed rail, and recognises the desire
to improve freight distribution, both across the country and cross-border as a land-bridge. Prior
to the fact-finding mission, preparation included desk studies and research. This was followed
by a series of meetings in the market to examine the sector at first hand, interviewing officials
and reviewing and assessing opportunities. This report has been prepared by Bob Docherty at
UK Trade Investment (UKTI), with the assistance of Mr Tim Gray from the Railway Industry
Association and UKTI colleagues in Turkey.

1.1 Acknowledgements and Delegation
Name Company Position
Bob Docherty UKTI International Business Adviser
Tim Gray RIA* International Business Development
Director

1.2 UKTI Turkey Support
Recognition must be given to the UKTI colleagues in Turkey, for their assistance in building the
programme and developing contacts in the rail sector.

Name Location
Asiye Yaman UKTI Ankara
Özge Dursun UKTI Istanbul

1.3 Organisations Visited
The full list of companies and organisations visited in the course of the research are listed in the
Appendix to this report.

1.4 UKTI Railway Sector Contacts
Mr Derek Griffiths Mr Bob Docherty
Head of Rail Sector Railways Sector, UKTI International Business Adviser
Tel: +44 20 7215 4773 Rail Sector, UKTI
Email: derek.griffiths@ukti.gsi.gov.uk Tel: +44 7879 661 598
bobdocherty@btinternet.com
Mr Mike Carroll
Head of Mass Transport, UKTI UKTI
Tel: +44 20 7215 4569 No 1 Victoria Street
London SW1H OET
www.ukti.gov.uk

2 RAILWAY SECTOR FACT-FINDING MISSION TO TURKEY MAY 2011

EXECUTIVE SUMMARY
Railways are enjoying a period of significant and sustained investment in Turkey, with
major investment in high-speed lines, rail-led solutions to freight and distribution, and urban
transportation in major cities across the country. A commitment to invest US$45 bn has been
made (US$23.5 bn before 2023), in a programme of expansion up until 2035. The detail of this
expansion programme is:

„„ 2,622 km of high-speed track by 2013
2
„„ A further 6,792 km of high-speed track by 2023
„„ 4,707 km of new conventional track by 2023
„„ A
n additional 2,960 km of high-speed track and 956 km of conventional track in the period
from 2023 to 2035

The national economy has been growing and strengthening. Turkey is currently the 16th largest
economy in the world and the sixth largest economy relative to the EU, according to GDP figures
(at Purchasing Parity Power) in 2009. Growth is forecast at 6.7 per cent in the period 2011 to
2018; GDP is around US$618 bn, with inflation at around 6.5 per cent.

Turkey is being increasingly recognised as a country that is modernizing rapidly, growing a
competitive economy that is moving up the skills chain, and with increasing capability. Market
sectors that are expanding include electronics, white goods, automotive sectors, and defence
and aerospace. Privatization has been underway since 2002. Indeed, there is a suggestion in the
market that private capital will have a role to play in railways, certainly in the provision of a
high-speed station in Ankara on a public private partnership (PPP) basis for which the tender
has been published, on a build operate transfer (BOT) basis for high-speed lines, and possibly
also in freight.

Regarding the rail infrastructure, the new high-speed lines will be double-track and electrified, and
with line speeds of 250 kph. Rolling stock will be partially constructed or assembled within Turkey.

A number of major cities have urban rail systems, Light Rapid Transit systems (LRT), tram or
metro of some kind. Extensions or new lines are much in demand and being planned. In Istanbul
alone, there are plans to provide 118 km of new lines by 2018 and a further 276 km by 2023.

Rail is seen as the preferred solution for freight, with new freight hubs planned around the
country that will use the high-speed lines and the Marmary Crossing to carry freight overnight.
The environmental issues associated with freight are well recognised in Turkey. Road congestion
is an issue, especially at border crossings, with as much as 95 per cent of freight currently on the
roads. There is an interest in growing railway freight in the market for domestic and international
routes. Turkey is keen to capitalise on its strategic geographical location.

RAILWAY SECTOR FACT-FINDING MISSION TO TURKEY MAY 2011 3

2
Turkey is developing rapidly and has become a manufacturing force in Europe. This will further
drive the demand for rail freight between Asia and Europe. (Turkey has borders with eight
countries). The future may, therefore, see an end to the monopoly of Turkish State Railways’
(TCDD) railway operations, with cross-border freight and passenger ‘open access’ operators
being allowed access to track. To facilitate change and to comply with EU directorates, TCDD
is undergoing reform, separating infrastructure, passenger and freight operations in a far-reaching
programme of modernisation. TCDD is currently a vertically-integrated railway, also owning
in-house manufacturing facilities for rolling stock and track materials, as well as maintenance units.
Ports and a rail ferry have been part of the portfolio but the former are now being privatised, and the
latter upgraded to include a ferry terminal with Russian gauge to accommodate cross-border traffic.

Historically, TCDD has owned a great deal of the maintenance and supply chain market. Many
of these facilities have been acquired in partnership, with technology transferred in-house, for
example, for track components, locomotives, wagons and passenger cars and their components.
UK companies may see this as an opportunity.

In a meeting with Academia regarding the rail sector, UKTI formed the impression that a step
change is happening in the Turkish market and that this should be accompanied by a step change
in technology, particularly with the demand for high-speed rail, and the drive to grow the freight
market. There is an opportunity for companies to introduce services and technology into the market.

The market is ready to work with international partners and there is desire to diversify these links.
In the wider (political) picture, Turkey is a member of NATO and wishes to join the European
Union (EU). Currently, both France and Germany appear to be resistant to Turkish accession (to
the EU), but despite this, both have traditionally strong positions in the Turkish rail market, with
more recent involvement from the Chinese, Japanese and Koreans.

2.1 Opportunities for UK Companies
With the growing rail market and high levels of investment, there are likely to be opportunities
for UK companies in Turkey. The Government is investing in the rail sector. There is investment
in high-speed and urban rail which may make these areas a particular focus for UK companies,
but freight and distribution are expanding too, and the drive for cross-border traffic may attract
companies with skills in inter-operability and logistics. UK skills in PPP and (real estate)
development may also contribute, as the market is changing and privatisation is progressing,
creating a growing desire to maximise use of assets, and return on investments. Professional
Services are likely to find opportunities in most of the previous areas. All new lines will be
electrified, so capacity for electrification may be an opportunity dependent on project phasing.

In supply chain rail areas, there has been extensive collaboration with overseas companies, so the
sector has a great deal of experience in technology transfer. The desire for local content, if not
production, remains strong. Performance will be admired, particularly for products or services
that can facilitate reductions in costs and energy consumption. European standards are widely-
recognised. Technology areas of interest include signalling and control, and rolling stock systems.


2
It is vital for UK companies to take care and pay close attention when approaching the market.
Sensitivity to the progress already made by local participants in advancing the rail sector is
considered essential, as is local partnership or a local market presence. A long-term approach is
also required.

Turkey is also recognised as having a very strong construction sector, capable of working in third
markets, and there may well be opportunities for UK companies here in support of the major
Turkish players.

Generally, major project work is advertised and is open to international competition. International
funders and Development Banks may also be a source of opportunity for feasibility work for
new-build projects and upgrades.

The UKTI team locally has good contacts and a strong market presence, and remains an
important resource to support UK industry in entering and developing the market.

BRIEF HISTORY AND
MILESTONES
3.1 Mainline 8Railway
The first rail system in Turkey was constructed in 1856 by a UK company, connecting the port
of Izmir with the Aydin. Railways were developed elsewhere around the country by other private
3
companies, before being nationalised in 1927.

The evolution of the railway system in Turkey is shown in table in 3.2 (Milestones) shows.

The first urban rail service in Turkey dates back to 1875, when the “Tünel” opened. The Tünel is
an underground funicular line of only 573 m that connects the Bosphorus. It rises 60 metres up
to the busy Taksim square area, with trains operating every 3.5 minutes and the journey lasting
about 1.5 minutes.

From Steam Trains to High Speed Service

1856 2010


3
3.2 Milestones
Year Milestone Comment
1856 The first railway from Izmir to Aydin Developed by a UK company
1924 4,000 km of track in operation Nationalisation began
1927 Ports added to rail portfolio 5,500 route km of track in operation
1950 Route km reaches 9,204 km
1953 Railway becomes a State Enterprise and 9,441 route km in operation
TCDD is formed
1984 TCDD becomes a State Economic 10,263 route km in operation
Institution
2003 Rail transport is opened to include private
sector participation
2004 Six ports are offered for privatization 10,991 km of track in operation
2008 First high-speed line is constructed
2009 High-speed operations begin
2010 2.85 million passengers carried on high-
speed lines
Projected Milestones
2023 Network of 26,251 route km Adding 14,336 route km, of which 10,000
will be high-speed lines
2035 Further 1200 km of high speed lines

Turkey has grown its rail network to around 11,000 route km (as at March 2011), and has a
programme of expansion currently underway and with more planned.

The intention is to extend the network by about 14,000 km by 2023, including 10,000 km of
high-speed lines by 2023 and further track by 2035.

There is a strong suggestion that some of the future expansion may draw in private capital in the
form of BOT (Build Operate Transfer) developments. Concession times of 30 to 35 years were
mentioned, and this approach could also be adopted for high-speed lines.


3
Section 5 of this report covers mainline railways in detail.

3.4 Urban Transportation
Turkey is creating or extending urban transport in most, if not all, of its major cities to meet growing
demand, using a mix of modes, including road and rail. (It may properly be described as guided
systems, as all forms of rail including monorail are under consideration). Buses and mini-bus services
are usually private sector, whilst the metropolitan authorities are responsible for rail.

Section 6 of this report examines urban transport in detail.


4 4 MINISTRY OF TRANSPORT
AND COMMUNICATION
Rail Structure and Organisation

www.ubak.gov.tr/

This Ministry is responsible for all transport, air, roads, railways and ports in the structure
shown below. Key elements of note in the rail sector are TCDD, the state rail organisation, and
DLH, a turnkey contractor. TCDD is a vertically-integrated system, which also has extensive
manufacturing and maintenance facilities. DLH can be considered a turnkey contractor that has
evolved to include design, construction and project management capability, able to take on major
projects such as the Marmary Crossing, a multi-billion dollar, complex project.

Priorities and Projects
The Ministry has defined three main targets for the rail sector which are to:
1. provide an attractive, substantial and affordable high-speed rail service
2. enhance existing track to allow increased speed of operation
3. streamline TCDD through restructuring and privatisation

Organisation
The current structure of the Ministry is shown Opposite.


4


4
4.1 DLH General Directorate of Ports Railways and Airports
www.dlh.gov.tr

DLH was established in 1934, initially as a public works body. A series of re-organisations
followed, with activity extending to include ports, airports civil defence and railways, it became a
General Directorate for the Ministry of Transportation and Communications in 1986.

DLH is the state-owned entity whose role is to deliver major infrastructure projects, from
planning and design through to project management and construction. It is involved in some
of the biggest projects in Turkey. DLH is the responsible directorate for the implementation of
projects and reports to the Ministry of Transportation.

4.2 Safety and Regulation
Currently, the railway is self-regulating in terms of safety. However, the proposed structure to
be adopted soon will include “DEKAK” which will be a separate railway accident investigation
board, reporting directly to the Ministry of Transport and Communication, rather than TCDD.
The proposed structure, which will probably be adopted following the next general elections in
Turkey (at time of writing, June 2011), is shown in Section 5.

4.2.1 Statistics and Safety Data
TCDD publishes an annual statistical report, including data relating to accidents, numbers of
casualties and much more (see link below). A snapshot of the number of accidents, followed by
passenger-km and freight tonnes-km is shown below for interest.

www.tcdd.gov.tr/Upload/Files/ContentFiles/2010/istatistik/2004_2008.pdf

4.3 Projects
A number of rail projects are in planning, but have not yet been released for construction. (Refer
to the TCDD website for current information).

The aim is to extend the network to over 26,550 km of track by adding more than 14,000 route
km, by 2023, the centenary of the Republic. Included in this is 10,000 km of high-speed track.
New track will be double-track electrified and it will use modern signalling.


4


4
4.4 Enhancing Logistics and Distribution Capability
The Ministry is aware of the need to improve the logistics capability of Turkey to maintain
competiveness and support economic growth. There is a desire to exploit Turkey’s strategic
location as a bridge between Europe and Asia. Rail freight currently has a very modest share
of all freight carried, at around five per cent. The country is keen to increase this as the sheer
volume of trucks on the road is causing significant delays at Turkey’s border crossings on a daily
basis, with queues that regularly reach 15 km long.

Rail is seen as the desired solution for freight that wins on a number of fronts. It offers significant
capacity, with a low carbon footprint. The potential to run freight services at night over the high-
speed network and through the Marmary tunnel crossing are also desirable ways of adding capacity.

To support the growth in rail freight and assist in attracting international traffic to the rail sector,
Turkey’s logistical capability is in need of improvement. As such, a range of 16 hubs and
logistics centres are being developed, four of which are already complete. The map below shows
the detail. These, too, may offer opportunities for UK Industry.

4.5 Privatisation and Private Capital in Railways

www.oib.gov.tr


4
Both mainline and urban railways remain in public ownership for now, despite a programme
of privatisation that is underway in Turkey. This privatisation process is managed by OIB, the
Turkish Government agency, and is covered in this report in Section 9. Currently, the impact of
privatisation in the rail sector is limited to the privatisation of some ports under TCDD control.

In future, there is a possibility of opening up the market to private capital and private operators in
several ways:

1. he new high-speed station planned for Ankara will be delivered on a PPP basis. After several
T
delays, a tender was issued, before being later withdrawn. At the time of writing, the timetable
for the process has still not been finalised. If the PPP model is successful, the same approach
may be used for further stations on new high-speed routes, so careful planning of this tender
will bring benefits in future.
2. he plan to enhance international freight may provide opportunities for UK companies in
T
operations.
3. uild Operate Transfer (BOT) appears to be the favoured option for attracting private capital
B
into rail. Selected lines may be tendered on a BOT basis, with a proposed concession period
of up to 30 or even 35 years. No process or policy has yet been adopted for such private sector
engagement, but at the time of preparation of this report, BOT looks likely to be the preferred
solution for the future.

.


5 TCDD - THE STATE-OWNED
MAINLINE RAILWAY COMPANY
www.tcdd.gov.tr

TCDD is the Turkish state-owned, vertically-integrated railway company. Headquartered in
Ankara, it has seven regional directorates around the country and, in addition to the rail and
maintenance operations, TCDD also has an extensive manufacturing capability in both rolling
stock and track components. It is a part of the Ministry of Transport and Communications. In
order to comply with European Legislation, a reorganisation of TCDD is imminent, most likely
following the elections that are planned for June 2011. (chart as pubished including acronyms)


5
5.1 TCDD Activities
TCDD’s current activities are extensive and diverse, going beyond rail operations and
maintenance to include:

„„ train operations
„„ rail infrastructure
„„ ownership and management of all stations
„„ track construction
„„ track maintenance
„„ rolling stock maintenance
„„ manufacturing units for rolling stock
-- locomotives
-- passenger cars
-- freight wagons
„„ factories
-- ADF ve Ray
-- Kaynak
-- Afyon ve Siva Beton Travers
-- Çamaf
„„ four ports – (a further three have already been privatised)
„„ shared ownership of manufacturing units
-- Eurotem
-- Izban
-- Vademsa

Detail on most of these facilities can be found on the TCDD website. TCDD has or has had in the
past joint ventures or collaboration with Austrian, French, German and Korean partners.

5.2 Physical Data
A detailed report on physical conditions, including bridges, track curvature, tunnels, wagon
resource, plant and equipment, as well as statistics covering TCDD operations can be found at:
http://www.tcdd.gov.tr/Upload/Files/ContentFiles/2010/istatistik/2004_2008.pdf


5
5.2.1 Route Km and Detail
Route km (2011) Volume / units
Conventional 11,048 km
Electrified 2,305 km
Signalled 2,665 km
Dual Track 403 km
Triple Track 28 km
Quadruple Track 9 km
High-Speed Lines 867 km
Total 11,915 km

5.2.2 Existing and Planned Route Map


5
5.2.3 Rolling Stock
Type Active units
High-Speed Train Sets 12
Diesel Locos 470
Electric Locos 52
DMUs 46
EMUs 91
Passenger Car 46
Freight Wagon (TCDD) 16,189
Freight Wagon (3rd party) 2,486

5.2.4 Employment

Category Personnel Interpretation
Civil Servants Including Contracted Staff 16,089 White Collar
Permanent and Temporary Staff 15,590 Blue Collar
Total 31,679

5.2.5 Market Share
At the peak of its powers in the 1950’s, TCDD had significant market share, which has fallen
considerably in modern times, following decades of relative under-investment compared to the
road sector.


5
5.2.6 Proposed Organisation
The new organisation, expected to come into force later this year, will look as follows:

This new structure will comply with European legislation regarding rail operations.

5.2.7 Lake Van – Rail Ferry Operations
Ports Van Gölü Feribot Isletmeciligi Establishment is the part of TCDD that operates the
train ferry service at Lake Van. Plans include investment in modern ferries to support freight
distribution across and through Turkey.


5
Lake Van Operations

5.3 Budget Allocation and Priority Projects
Railway in general and TCDD in particular, are enjoying an upturn in investment, following
decades of under investment, certainly in comparison to roads. The investment is aimed at
recovering market share by providing much-improved services. In the passenger sector, growth is
planned in the high-speed and urban sector, whilst in freight Turkey is keen to support economic
growth by improving rail and multi-modal freight services, logistics and distribution capability.
This will extend to include the creation of an international, trans continental land-bridge for
freight, linking Europe to the Middle East and Asia to Europe.

5.3.1 TCDD Annual Budget Evolution


5
5.3.2 Key Projects
Railways are expanding in Turkey. The following projects are underway, with the extensions of
the high-speed network constituting a key area:

„„ expansion of high-speed rail
„„ Marmaray project
„„ rehabilitation of existing railway lines
„„ modernisation of rolling stock and infrastructure
„„ improved logistics and distribution, including multi-modal options
„„ improvement of block train management
„„ establishment of rail RD facilities.

5.4 High-Speed Operations
The high-speed (HS) lines between Ankara and Eskeşhir commenced revenue operations on
13 March 2009. Around 2.85 million passengers used the service from its launch until end of
December 2010.

Since July 2010, the lines have operated 22 trips per day, carrying around 6,000 passengers every
weekday and 8,000 at weekends.

The tender for a new high-speed station required for Ankara has been issued on a PPP basis and
this may well be a model for future high-speed stations, encouraging private capital into the
sector. The tender process experienced some delays and had been re-issued without a specific
time frame for closure at the time of preparing this report. This process may be a useful case
study to determine how the market adopts the PPP process for future use.

Siemens has stated that it would consider producing a “Velaro” type train in Turkey, adapted
for local use, and capable of running at 400 kph. During the Eurasia Rail exhibition, there were
reports that the technology transfer could open with 20 per cent local content, rising to 50 per
cent or more in future. There may be other suitors seeking an investment in Turkey in this area.


5
5.5 TCDD Port Operations
TCDD has responsibility for four ports, with three (Mersin, Samsun and Bandirma) already
having been privatised. The privatisation process will continue, so the number of ports under
TCDD control will diminish.

The volumes passing through the TCDD ports are shown below for information.


5
5.5.1 Freight Transportation Potential
TCDD is confident that the traditional and historic trade route between Asia and Europe can be
revived and expanded using rail to exploit Turkey’s strategic location.

It has analysed the market and believes there is a potential US$75 bn trade flow pa. The
organisation wishes to offer a route to market for companies wishing to obtain a share of this.

Existing Rail Border Crossings

Location Borders / Connects to
Kapikule Bulgaria and onward to Europe
Uzunköprü Greece and beyond
Kapıköy Iran and central Asian Markets
Islahiye Syria and Iraq
Nusaybin Syria and Iraq

The intention is to improve the network and entice operators to use rail to deliver into the heart
of markets in Europe. A great deal of work is needed to deliver such a service, including access
and interoperability agreements with neighbouring countries.

Access to CIS / Russian gauge (1,520 mm) is catered for by means of a Black Sea rail ferry, and
gauge conversion facilities, where bogies can be changed. Investment to modernise and improve
train ferry services is proposed.


5
Existing International Freight
The charts below show the freight between Turkey and Europe, and Turkey and Asia. The
proportion of international freight is modest, whilst imports into Turkey from the Middle East
have largest share of cross-border freight. These charts suggest the extent of activity required to
grow international freight.

International Freight Traffic Classification*


5
A press announcement during April 2010 reflected the desire of TCDD to extend Turkey’s reach
as an international freight destination:

“Turkey’s Independent Industrialists and Businessmen’s Association (MUSIAD) signed a
co-operation agreement with the Lithuanian railways at the beginning of April 2010.

MUSIAD conducts initiatives for the realisation of the Viking Project to connect Turkey and
Middle Eastern countries with the Baltic countries. The agreement was signed by the Foreign
Relations Commission of MUSIAD and the General Manager of the Lithuania Railroad.

The Viking Project also involves the commercial connection between Lithuania-Belarus-Ukraine
(Odessa) and Turkey (Samsun, Istanbul)-Syria-Iraq-Iran.”

6
URBAN RAILWAYS
Demand for urban transport is growing in Turkey, with its increasingly-congested cities. Rail-
based solutions are recognised as delivering solutions in an environmentally-friendly manner,
and there is a belief that investment in rail (in its many forms, including light and heavy rail
commuter systems), will continue, certainly in the major cities that have sufficient traffic density
to meet the economic criteria for rail.

6.1 Urban Transportation – Metropolitan Authority
Urban transportation is generally the responsibility of the metropolitan authorities, which own
and manage rail operations. However, bus services are generally privately-owned and run,
including the ubiquitous mini bus services which are found in most cities.


6
6.2 UITP
www.uitp.org/regions/europe/turkey.cfm

UITP, the International Association for Public Transport, has opened a liaison office in Turkey
to better serve its members there and maintain current awareness of industry trends in important
areas, such as finance.

Contacts are listed on the UITP website:
Enis Hemedoglu, UITP Turkey Office Manager, enis.hemedoglu@uitp.org
Sibel Bahtiyar, UITP Turkey Office Assistant, sibel.bahtiyar@uitp.org

UITP Turkey Liaison Office
Tel: +90 212 569 5786
Fax: +90 212 568 9956

Ferhatpasa Metro Facilities Esenler
TR 34200 Istanbul
TURKEY

6.3 Metro Systems in Detail
When researching this report, there was insufficient time to visit all of the metropolitan
authorities with planned or existing rail systems, though we did have very positive exchanges in
both Ankara and Istanbul. Detailed information is included in this report. Additional information
was kindly provided by Ms Sibel Gursoy at Ulasim, the Istanbul metropolitan authority, and a
list of cities with transportation authorities is included below, which may be useful for companies
addressing the market.

City System
Adana Heavy Rail
Ankara Heavy Rail Metro
Light Rail
Antalya Tramway
Bursa Light Rail
Eskişehir 2 x Lines Light Rail
Istanbul Heavy Rail
Light Rail
Tramway
Funicular
Izmir Heavy Rail
Konya Tramway
Kayseri Tramway
Samsun Light Rail


6
6.4 Adana
http://www.adana.bel.tr

Situated in southern Turkey, Adana has a light metro line. Construction began in 1992, with
the first, mostly surface section finally opened in March 2009. The second phase, around 6 km
(Akincilar Station-Cukurova University), is currently under construction and due to be ope
rational during 2011. This will raise the daily passenger carrying capacity to 660,000.
The website has more detail, including the strategic plan for 2010 – 2014 (in Turkish).

www.adana.bel.tr/adanabeltr/data/pagetopic/63/stratejikplan-20102014.pdf

6.5 Ankara
www.ankara.bel.tr/TasarimOgeleri/defaultEn.aspx

The Turkish capital has some 3.5 million inhabitants in the metropolitan area, who are served by
a mixture of rail systems: the commuter rail system delivered by TCDD, Ankaray a light railway
system and the “Metro. Ankara is developing new projects and has a detailed masterplan called
Urban Transportation Plan of Ankara for 2015.

The first “Metro”, the M1 (Kizilay-Batikent) metro line (14.6 km) started operation in December
1997 with 108 cars. Ankaray, became operational in 1996 serving Dikimevi-Asti (8.5 km).

Currently under construction, M2 Kizilay-Cayyolu will add 16.5 km to the metro system. M3
Batikent-Sincan to Torekent will be 15.3 km and M4 Tandogan-Kecioren will be 10.5 km.

6.5.1 Ankaray
www.ankaray.com

Built in 1996, this system runs mostly underground on an east to west axis and provides an
interchange with bus services and the heavy metro in the city centre. An extension of around 12
km is planned. Full detail can be found on the website:

http://www.ankaray.com.tr/component/content/article/6-genel-tanitim.html

6.5.2 Ankara Metro
www.ankarametrosu.com.tr

Ankara metro system covers 14.6 route km. It is a double-track, heavy rail system serving 12
stations, supported by a depot. It travels from southeast to northwest through the city centre.

Ankara metro system operates with a 90 second headway, with maximum operating speeds of
80 kph. It has 108 cars (in 36 train sets), capable of carrying 70,000 passengers. This heavy rail
system had significant UK input during construction. A link to an interactive map, with system
detail and plans can be found here: www.ankarametrosu.com.tr/guzergahmap


6
6.5.3 Ankara Suburban Railways – TCDD
TCDD operate a network of around 37 km, covering 28 stations across Ankara;

Category Detail
Name TCDD www.tcdd.gov.tr
Description Suburban Heavy Rail
Route km and Stations 37 km with 28 Stations 25 kV Hz
Passengers 380 Million Passenger - km
Rolling Stock 96 Cars Emu Rotem / Mitsui 26 Train Sets

6.6 Antaly
www.antray.com (website under construction)

The Antray Light Rapid Transit (LRT) in Antaly opened in December 2009, with 11.1 km and 16
stations (between Kepez and Meydan).

6.7 Bursa
www.burulas.com.tr

Bursa, with a population of around 1.3 million, is situated in north-western Turkey, about 150
km south of Istanbul and 400 km west of Ankara. Burulas is the Public Transport Authority and
Operator. Bursa became famous as the ﬁrst capital of the Ottoman Empire and the departure point
for the Silk Road trading route.

Bursaray is the light metro system for the city and will be extended, in time, to 50 route km in
total. The initial 17 km Y-shaped line opened in 2002, built by a Siemens-led consortium. It
carries some 190,000 passengers daily. Burulas is the municipal company in charge of operation
and maintenance of the system. Both branch lines are being extended

6.7.1 Bursa Light Rail Receives International Funding
In March 2011, The European Bank for Reconstruction Development approved a 15-year
loan worth €50m towards construction of the second phase of the light rail network in Bursa.
The loan is part of a financing package that also includes €100m from the European Investment
Bank. The funding will allow the operator to purchase 30 Flexity Swift cars from Bombardier to
boost capacity on the expanding network.

6.8 Denizli
www.denizli.gov.tr

The municipality of Denizli is currently planning a railway system project to relieve congestion
in the city. A rail transportation master plan has been produced, including some revisions to the
route and further feasibility work. Approval to proceed is anticipated soon.


6
6.9 Eskişehir
www.estram.com.tr/eng/iletisim.php

There is an operational Light Rapid Transit (LRT) system in the industrial city of Eskişehir,
which the regional authority plans to extend. An urban development plan has been written to
create a modern transportation infrastructure that will harmonize the city’s development needs
with quality of life and environmental concerns.

The LRT was built within 20 months by a Bombardier–Yapı Merkezi consortium in December
2004. It won the 2004 UITP Light Rail Award. Estram is the operator of the system, with a
concession for 10 years. The current network covers 13.5 km, with two lines across the city, has
a daily patronage of around 87,000 passengers. Feasibility studies have been completed to extend
the system.

6.10 Gaziantep
www.gazi-antep.com/index.php?option=com_contenttask=viewid=15Itemid=

There is 9 km of Light Rapid Transit (LRT) in Gaziantep, with 13 stations under construction and
plans for further extension by 2025.

6.11 Istanbul
In Istanbul, public transport extends to include: bus and minibus; rail; a funicular railway; a
modern tram and a heritage tram. New capacity is currently being added, with one high profile
project being the Marmary Crossing. New and extended rail lines will be added to extend the
systems when the (Marmary Crossing) tunnels are completed. Even with these new systems,
demand will continue to grow in this bustling metropolis of at least 12 million people.

Passenger Demand and Share in Istanbul
Rail carries about 9.5 per cent of passenger traffic in Istanbul, though road is the dominant mode.
Demand has risen substantially in the past five years, and the forecast is for continued growth.


6
6.11.1 Metropolitan Transport Authority
IETT - İstanbul Elektrik Tramvay ve Tünel İşletmeleri Genel Müdürlüğü

http://www.iett.gov.tr

IETT is the General Directorate for the Electric Tramway and Tunnel for Istanbul. Whilst its key
responsibility is for the bus services in Istanbul, it also operates the funicular Tünel systems and a
tram, which runs over 1.6 km and carries around 1,500 passengers per day.

Transport and Affiliated Organisations
The following table shows the transport structure within Istanbul:


6
Systems in Use
The following systems are in use in Istanbul, many of which will be extended:

Name System Vehicles Stations Route km Passengers
‘000
M1 Aksaray - Airport 84 18 20 200
T1 Şişhane - AOS 124 10 14.5 170
M2 Zeytinburnu - Kabataş 61 23 14 260
T2 Güngören - Bağcılar 16 9 5.2 50
T3 Kadıköy - Moda 4 10 2.6 2
T4 Habibler - Topkapı 62 22 15.4 100
F1 Taksim - Kabataş 4 2 0.59 28
Funicular
Cable Eyüp -Maçka 8 4 0.71 5

6.11.2 Istanbul Metro - Ulasim
www.istanbul-ulasim.com.tr

Ulasim is the operator of the Istanbul metro. It is a fully vertically-integrated rail system
and covers all disciplines, from planning design and consultancy through to operations and
maintenance. Indeed, Ulasim is also manufacturing passenger cars in-house.

Operations
Ulasim was founded in 1988 to maintain and develop suburban rail systems under the
metropolitan authority of Istanbul. Its activities include:

„„ operations
-- metro
-- light rail
-- tram
-- cable car
„„ maintenance construction
„„ measurement and training
„„ engineering and consulting
„„ research and development

Ulasim is building an in-house passenger tram car and has developed its own control systems,
demonstrating the reach and capability of the organisation.


6
Planned Extensions:
System Evolution / Future Development
Plans to develop the metro are shown in the map below. The city is seeking to complete these
ahead of the centenary celebration of the republic in 2023:

Lines Length (km)
Existing Lines
Municipality-owned lines 72.8
Suburban lines (TCDD-owned lines) 72
Short–term Projects (under construction)
- Urban rail lines (to be finished in 2012) 54.5
- Marmaray Tunnel (to be finished in 2012) 89.5
Mid–term Projects
- (To be finished in 2018) 118.6
Long-term Projects
- (To be finished in 2023) 276.6
TOTAL 612

The System at a Glance
„„ Founded: 1988
„„ Seven lines
„„ 73 km length
„„ 98 stations
„„ 815.000 passengers per day
„„ 363 trains


6
Manufacturing / RD Capability
The extent of the capability at Ulasim can be measured by the Domestic Tram Project, which was
designed and produced by İstanbul Ulaşım in–house. The first prototype was produced in 1999,
and to date, the vehicles produced have carried more than five million passengers. An updated
version was produced in 2009.

New Rolling Stock Demand

Types of Cars Number of Cars
Through to 2018
Metro 1,105
Light Rail 186
Tram 30
Monorail 26
Suburban 440
Between 2018 and 2023
Metro 943
Monorail 46
Suburban 148
TOTAL 2,924

6.11.3 Marmaray Crossing
The Marmaray Crossing project a long-planned underwater Bosphorus rail crossing, begun
in 1994. The project includes a 13.3 km Istanbul Strait crossing and the upgrade of 63 km
of suburban lines to create a 76.3 km high-capacity line between Gebze and Halkali. The
crossing is being constructed using a 1.8 km earthquake-proof immersed tube, assembled in 18
sections. This tube will be accessed by bored tunnels from Yenikapi on the European side and
Sogutlucesme on the Asian side of Istanbul.

The project has been delayed by the discovery of important heritage sites and around US$60
million of additional cost has been incurred investigating these and recovering a huge the
important relics and antiquities discovered on the site.

A case study is included in Appendix I at the end of this report

Plans for the Marmaray Crossing include interchange stations with Istanbul metro and light rail,
whilst the upgrade of the suburban lines requires a third track to be laid along most of the route to
increase the line capacity up to 75,000 passengers per hour in each direction. Signalling is being
upgraded to provide a service with two minutes’ headway.

The 41 stations along the line will be refurbished and the platforms lengthened to 180 m. The rail
tunnel will be used by both suburban and long-distance services, as well as freight. A decision on
whether the line will be operated by TCDD or Ulasim is yet to be taken.


6
6.12 Izmir
www.izmirmetro.com.tr

Izmir is served by around 80 km of suburban rail, with 31 stations and operated by TCDD. There
is also a metro, Izmir Metro AS, with 11.5 km of lines currently operational and further phases
under construction:

„„ Phase 2 5.4 km
„„ Phase 3 7.5 km
„„ Phase 4 3 km
„„ Phase 5 11 km

The metropolitan authority has a transportation master plan from 2010 that includes a further 50
route km of metro. The website contains detail information, a brochure and presentation with full
technical detail and system description.

6.13 Kayseri
www.kayseri.bel.tr

The 17.5 km tramway Kayseray, became operational in August 2009, serving 28 stations with a
further three phases now at the planning stage.

The General Manager of Kayseray is listed on the website above.

6.14 Konya
www.konya.bel.tr

Operated by the municipality, the ﬁrst tramline in this ancient city of the Central Anatolian
Region opened in 1992, following lengthy delays in both planning and construction. A second
line was added in 1995, with a third extension of 3.3 km completed in 2007. The system carries
more than 30 million passengers each year.

6.15 Samsun
www.samsun.bel.tr/proje-detay.asp?SayfaId=15

Detailed information can be found on the website, covering the 17.2 km of the Light Rapid
Transit (LRT) system which serves 21 stations.


7 THE TURKISH
CONTRACTING SECTOR
Turkey has a very strong reputation and capability in the international construction and contracting
sectors. Consequently, it may present opportunities to UK companies for co-operation and supply
chain, both in Turkey and third markets. The chart below shows the evolution of the values accrued
by Turkish contractors in overseas markets and the geographic spread.


7
Turkish Contractors Association

www.tmb.org.tr

There is a Turkish Contractors Association, which recently completed an inward mission to the
UK arranged by UKTI. The website is a good source of information.

Secretary General Mr Haluk Bϋykϋbas
Deputy Secretary General Ms Çiğdem Çinar

7.1 Yapiray
Insight into the rail market in Turkey was provided for this report by Yapiray, the Turkish rail
contractor. Yapiray has considerable experience both in Turkey and in international markets. It can
list projects such as the high-speed rail line in Turkey and the Dubai Metro amongst its references.

8
RAIL ASSOCIATIONS AND
ACADEMIA IN TURKEY
Turkey has several rail organisations.

8.1 RAYDER (Association of Rail Transport Systems)
http://www.rayder.org.tr

Rayder is the organisation founded for the development of the railway sector in Turkey. Its board
is drawn from academia and industry.

The organisation’s aims include improving skills and knowledge locally, as well as monitoring the
latest developments from around the world, with the intention of adopting these for use within Turkey.

The development of the railways has been adopted as the most significant transport policy of the
new Turkish Government. Its intention is to grow the share of rail freight to 15 per cent by 2023.
Plans are being laid to invest US$50 billion in high- speed lines, the Marmaray Crossing project,
and metro and tramway projects across Turkey’s metropolitan cities. As such, Rayder sees itself
as having an increasing important role.


8
Key Points
„„ ayder is an industry body.
R
„„ I
t is preparing a railway industrial catalogue to promote the indigenous railway sector and
industry.
„„ R
ayder has been participating in INNOTRANS, Berlin, drawing in other Turkish companies
and raising the international profile of the sector.
„„ T
he organisation works in collaboration with international organisations, such as UITP
(International Association of Public Transport) and UNIFE (The Association of the European
Rail Industry).
„„ R
ayder is seeking to create a General Directorate of Urban Rail Systems within the Ministry
of Transportation and support research and development for the production of metro and
tramway vehicles locally.
„„ W
ork to establish a research and development centre for rail systems, and a test line in
Eskişehir, is underway.
„„ T
he creation of a Department of Rail Systems in Turkey’s universities is also underway.
„„ R
ayder supports rail system departments in some recently-opened Industrial Vocational High
Schools across Turkey.
„„ I
t aims to encourage further investment and participation in the sector from local and
international players from the private sector, and is working to develop a new law that will
extend the use of the private sector in rail.

Rayder recognises the need to develop railway infrastructure, the supply chain sector and rolling
stock. The upturn in the market has already attracted the attention of a number of local and
European companies in this field.

Rayder Contact Information
Email: rayder@rayder.org.tr
www.rayder.org.tr

8.2 Railway Transport Association (DTD)
www.dtd.org.tr/

DTD is the Railway Operators Association, established in June 2006. Its members carry over 3.5
million tonne of freight pa and are seeking to grow rail’s share of freight in Turkey.

DTD lobbies for improved railway transportation, railway infrastructure and the restructuring
of the industry and law to align Turkey with European legislation. Therefore, the organisation is
building international links to ensure that rail can take advantage of the growing freight market
and potential for international traffic on rail.


8
8.3 Academia
There a number of universities and distinguished academics with links to the rail sector in
Turkey, some of whom also hold positions in the rail associations and lend their expertise to
bodies such as Tüvasas, the rolling stock constructor. Among the universities with links to the rail
sector are:

„„ Işik University
„„ Istanbul University (Faculty of Engineering)
„„ Istanbul Technical University.

While researching this report, we had the opportunity to take soundings from several of these
institutions who kindly offered their insights into the rail market.

The impression we formed was that a step change is happening in the market and, consequently,
this needs to be accompanied by a step change in technology, particularly with the demand
for high-speed rail, and the drive to grow the freight market. There is an opportunity for UK
companies to introduce services and technology into the Turkish market.

9
PRIVATISATION AND INWARD
INVESTMENT INTO TURKEY
www.oib.gov.tr

The Ministry responsible for privatisation, OIB, and the Ministry for Inward Investment into
Turkey report to the office of the Turkish Prime Minister. It is widely anticipated that private
capital will have a place in Turkish railways in the future. The most likely scenario is that Turkey
will adopt public-private partnership (PPP) opportunities on a Build Operate Transfer (BOT)
basis. PPP operations are probable, particularly on high-speed lines. PPP is already established
and in use in Turkey, but not yet in the rail sector.

The diverse nature of rail operator TCDD, with its ports and production units for rolling stock
and components, means that these two Ministries are worth including in this report.

9.1 Republic of Turkey Privatisation Administration 2011
Further privatisation is underway in Turkey and may impact the railways in future, though no
plans beyond privatisation of ports were discussed during this visit. Further privatisation of ports
currently owned and operated by TCDD is possible.

The role for private capital is likely to be on BOT (Build Operate Transfer) projects, with 30-year
concessions. These will probably include high-speed lines.


9
9.2 Republic of Turkey Prime Ministry Investment Support and
Promotion Agency of Turkey (ISPAT)
http://www.invest.gov.tr

Ispat provides a one–stop shop for inward investment into Turkey. It has a presence around the
world, including offices in the UK. It also serves as a reference point for international investors
and as a point of contact for all institutions engaged in promoting and attracting investments at
national, regional and local levels.

Ispat operates like a private company. It works with its clients on a confidential basis and has the
backing of all Turkish Governmental bodies. Its services, which are provided free-of-charge include:

„„ market information and analyses
„„ industry overviews and comprehensive sector reports
„„ assessing conditions for investment
„„ site selection
„„ finding companies for potential partnerships and joint ventures
„„ negotiating with relevant Government institutions
„„ facilitating legal procedures and legislation issues, such as:
-- establishing business operations
-- incentive applications
-- getting licenses
-- work/residence permits.

Ispat’s UK representative is:
Ahmet Iplikci
Republic of Turkey Prime Ministry
Investment Support and Promotion Agency of Turkey
2nd Floor Berkeley Square House
Berkeley Square London W1J 6BD

Tel: 0 20 7887 1987
Fax: 0 20 7887 6001
Mob: 07540 359 215
Email: aiplikci@invest.gov.tr


10 EURASIA RAIL EXHIBITION
www.eurasiarail.com

The first ever exhibition focussing exclusively on rail was held in Ankara in March 2011. The
next Eurasia Rail exhibition will be held on 8 – 12 March 2012, this time in Istanbul and Eurasia
Rail is confident that it will be bigger and better than the launch event. Eurasia Rail reported that
the 2011 show was a great success. It said:
10
„„ A
pproximately 117 companies participated, 60 per cent of which were international.
„„ I
ts aim is for 250 companies in 2012 - 78 are already confirmed.
„„ T
urkey is enjoying US$25 bn of investment in rail, so there is already significant interest in
the show and the rail market.
„„ T
he freight sector will benefit from being able to run through the Marmary tunnel at night.
Consequently, the next event will include a focus on infrastructure and logistics in order to
develop this sector and international traffic.

10.1 Show Review UKTI East Midlands
UKTI East Midlands and UKTI West Midlands had joint stand space at the Eurasia Rail
exhibition in 2011, taking 11 participating UK companies. UKTI delegates commented the
exhibition was well-organised, and while the number of visitors was modest, their quality was
encouraging, with key decision-makers in attendance and accessible to delegates. For example,
there were senior officials from a variety of divisions of TCDD, contractors, and specialist
suppliers to the industry. As well as gaining market intelligence, UK delegates identified a
number of potential partners at the event and all of them achieved their objectives.

UKTI East Midlands and a significant proportion of the UK delegates are planning to return to
Turkey for the next show in Istanbul in 2012.

UKTI East Midlands Contact is Mr Richard Burchell richard.burchell@uktiem.co.uk


11
11 Doing Business in Turkey
The UK has stated publically that Turkey is a market with significant potential for growth and is
keen to develop mutual trading links. UKTI has a strong team in Turkey to support UK business,
and can assist in areas such as market research and identifying key stakeholders, including
partners, agents or distributors. UKTI has a number of reports available off-the-shelf, or you may
be able to commission the Overseas Market Introduction Service (OMIS) to prepare a bespoke
report specific for your needs. OMIS is a cost-effective means of obtaining credible information
specific to your company.

The UKTI Trade team in Turkey presented the following summary of the market. An overview of
Turkey presented by Ispat (The Turkish Inward Investment Agency) is also included in this report.

11.1 UKTI, Ankara – Market Overview, March 2011
„„ T
urkey is world’s 15th, and Europe’s sixth largest economy. It is forecast to be in world’s
top 10 by 2050
„„ T
he FDI Global Rankings in 2008 (UNCTAD) placed Turkey 20th and the UK fourth in
the world
„„ U
K is Turkey’s second largest export market in Europe, after Germany. Turkey is UK’s eighth
largest export market in Europe. Turkey’s major import markets are Russia and Germany. The
UK ranks 19th

Turkey Exports to UK
2008 2009 Change 2010 Jan-Nov
£5.32bn £3.86bn -27% +18%

UK Exports to Turkey
2008 2009 Change
£3.47bn £2.26bn -35% +35%

In the first 11 months of 2010, bilateral trade was £7.4bn, exceeding the total for the whole of
2009 by £1.25b

Main Exports
(a) K to Turkey - machinery and mechanical appliances; pharmaceuticals; vehicles; iron and
U
steel; plastic.

(b) urkey to UK - clothing and textiles; electrical machinery and equipment; vehicles; footwear;
T
machinery and mechanical appliances.

Turkey: A High-Growth Emerging Market (HGEM)
Turkey is designated by HMG as one of the world’s High Growth Emerging Market of significant
potential and strategic importance to the UK economy. It places Turkey alongside the BRIC
countries (Brazil, Russia, India, China


11
Investment
UK investors in Turkey include: Tesco; Vodafone; British Foods; BP; Shell; Lloyds List; HSBC;
International Power; and Mott MacDonald.

Inward Investment into the UK from Turkey
The number of Turkish investors supported by UKTI increased from five in 2008/9 to 13 in
2009/10 (a 160 per cent increase). There are 70 Turkish-owned businesses in the UK registered at
Companies House, with an annual turnover of £1.1 billion.

Turkey: Killer Facts

„„ T
urkey has the youngest and fastest growing population in Europe (with 450,000
graduates a year).
„„ T
he Istanbul economy alone is larger than 12 EU countries.
„„ T
urkey will be second fastest-growing country in the world by 2018 (according to the OECD).
„„ T
he Turkish economy will outstrip Canada, Spain and Italy by 2025.
„„ T
urkey has the world’s second largest construction and contracting sector.
„„ I
t is Europe’s number one TV manufacturer.
„„ I
t is Europe’s leading passenger coach manufacturer.
„„ T
urkey is the world’s third largest mega-yacht producer.

11.2 ECGD – Market Summary
www.ecgd.gov.uk

The Export Credits Guarantee Department (ECGD), the UK’s official export credit agency
undertook a market review of Turkey in 2010. It offers a very positive view of the current market
conditions (although, as market conditions are subject to change, please refer to ECGD for
updates or any conditions that may apply to transactions).

ECGD can provide cover in Turkey (for political risk, insurance and finance guarantees) subject
to its terms and conditions. The organisation can look at projects of around £50 million quite
easily, but would be prepared to consider cases of a considerably higher value, subject to content.
It will consider sovereign or corporate borrowers.


I APPENDIX I
Case Study – The Marmaray Crossing
The demand for travel across Istanbul, including the Bosphorus, is huge, with a population of at
least 12 million to cater for and in excess of two million visitors at any one time. Whilst Istanbul
has existing metro and rail systems, a new commuter rail system is being developed which
will travel, via two immersed tunnels, under the Bosphorus Strait. It will connect the European
side of the Strait to the Asian side, adding capacity of 75,000 people per hour in each direction.
Much of the project has already been awarded, although a re-tender is underway for the railway
systems segment following the late withdrawal of the party originally contracted. Five groups are
contesting the re-run, with Bechtel representing the UK interest.

The broad details of the project are:

Category Volume
Commuter Rail System 77 km
At Grade European Side 19.6 km
At Grade Asian Side 43.4 km
Bored Tunnel 12.2 km
Immersed Tube Tunnel 1.4 km
Maximum Depth of Immersed Tunnel 56 m
New Stations 4
Total Stations 40
Capacity
Existing Rail 10,000/hr
New Rail 75,000/hr
Design Speed 100 kph
Operational Speed 45 kph
Headway (Peak) 2 to 3 minutes
Reduction in Travel Time 81 minutes
(Gebze to Halkali)

The contract provides for:
„„ pgrade of existing track and stations to cater for enhanced passenger numbers
u
and freight services
„„ N
ew signalling and telecoms, including a new control centre
„„ A
utomatic Fare Collection system upgrade that will allow integrated ticketing with all modes,
and provide an electronic wallet operation for modest value purchases
„„ 4
4 train sets with five and 10-car configurations
„„ s
even transfer stations for intercity trains to enhance passenger service and mobility.


I
Project Map

Benefits
The project will help to relieve some of the pressure on Istanbul’s bridges and reduce car
congestion in the city, with a reduction in carbon emissions as a result. However, there is some
concern that, even with the rail system working at capacity, road traffic levels will not actually
decline, as demand for transport remains high in and around Istanbul and new drivers will replace
those who switch to trains. Istanbul has about 73 per cent employment on the European side and
around 35 per cent of the population on the Asian side.

One key benefit is the considerable reduction in journey times for the estimated one million
commuters who will use the lines.

The scheme is running behind schedule due to significant archaeological finds made during
construction, including seven whole shipwrecks and numerous artefacts around the construction
sites. Turkish heritage is protected in law by the Ministry for Culture. Further issues have been
caused by a contractor dropping out of a contract for systems, necessitating a re-tender, which is
now under evaluation (see below).

Funding
The contract was originally split into three areas, with Japanese International Cooperation
Agency (JICA) funding for the tunnel construction and European Investment Bank funding for
the other two packages:

Ref Element Detail Funds
BC1 Bosphorus Crossing Immersed tube tunnels. JICA
Bored tunnels on both sides.
Construction of four new stations.

CR1* Upgrade of Commuter Rail Improvement of existing track. EIB
Addition of a third track – for commuter and
freight. CEB
Signalling and telecoms
control centre.
Fare collection systems.

CR2 New Rolling Stock 44 train sets (10-car and five-car) EIB


I
*Due to the withdrawal of the contracted party, CR1 has been re-tendered and is now referred
to as CR3. It is now funded by CEB, the Council of Europe Development Bank. The tender is
due to be awarded mid-2011 and contenders include, Bechtel UK, two Italian consortia, one
Chinese and one Spanish consortia. CR1 is now in litigation, the original winning bidder is being
challenged on its withdrawal from the contract.

BC1 (the Bosphorus Crossing) is being undertaken by a Turkish / Japanese consortium, whilst Hyundai /
Rotem of Korea have won CR2, with some technology transfer that will allow local content.

The Treasury of Turkey, under the Ministry of Finance, is responsible for arranging the financing
of the Marmaray Crossing project. It also has responsibility for deciding the fare prices and the
fare principles.

Construction Team
Avrasaya has been the consultant engineer to DLH since the beginning of the project. Avrasya
consult is an international team of three partners from Turkey and Japan. The team is also assisted
by local consultants from Turkey:

„„ Oriental Consultants is the lead partner from Japan
„„ Yüksel Proje Uluslarası A.Ş. is the local partner from Turkey
„„ JARTS is the specialist partner from Japan.

These three partners form the joint venture, which is in association with the following two
Turkish companies:

„„ Terzibaşıoğlu Müşavir Mühendislik Ltd. Şti. (TMM)
„„ Yerbilimleri Etüd ve Müşavirlik Ltd. Şti (SIAL)

Crossing Construction
An immersed tunnel was chosen to avoid the excessive gradient that a bored tunnel would
require. One hundred and eleven segments, each weighing 20,000 tonnes, were constructed
nearby and floated into position. Tight control was required for sinking them into position, given
the water flows and traffic in the Bosphorus area.

Historical Discoveries and Impact on the Project
The first underwater link across the Marmary was proposed in 1860. Since then, a series of schemes
have been put forward until the current project was finally agreed and executed. Indeed, a tunnel
excavation was found during the construction works believed to be about 1,700 years old.

In addition, the artefacts found during excavation include important ancient ruins, burial grounds,
an ancient harbour and seven ships that are virtually intact, including some laden with cargo, gold
coins and numerous household items.

The consequences to the project of the historical findings are that:
„„ one high-speed rail link and one intercity station have been cancelled
„„ the cost of the archaeological excavations is US$35 million
„„ the cost of prolonging the contract is US$60 million
„„ the total time lost is around 4.5 years.


I
Future Connections
New rail systems are planned to facilitate movement across the city on both European and Asian
sides, with daily demand growing from around 1.1 m crossings in 2009 to 1.6 million.

Seismic Concerns
Istanbul is in an earthquake zone, and measures have been taken to mitigate the impact of a
major earthquake (we understand that the tunnel has been designed to withstand an earthquake of
around 7.5 on the richter scale.

There is a major fault line 16 km from the project. The seismic history was profiled and a solution
provided during the preparation phase:

Environmental Mitigation
A major effort was made to ensure that the project was delivered with minimal impact on the
environment. This included provision for major fish migrations from the Black Sea to the
Marmary and vice versa.


II APPENDIX II
Case Study – High-Speed Rail Project
The Ministry of Transport and Communications has pledged to construct a high-speed network
around Turkey with the intention of reducing journey times, and creating an affordable and
sustainable means of transport. The aim is to extend the network to 14,336 km of track, of which
around 10,000 km will be high-speed, by 2023, the centenary of the Republic. All new high-
speed lines will be double-track and electrified, and capable of running at 250 kph. Rolling stock
will be part-supplied within Turkey.

One example is the Ankara to Istanbul line. At 533 km long, the line, which is a double-track,
electrified, and signalled rail system, will be available for operation at 250 kph. This will reduce the
journey time from the current 6 and a half hours to three hours between Ankara and Istanbul.

Growth in Market Share (Passenger)
The busiest route in the country is the Ankara to Istanbul corridor. Rail’s share of passenger
transport on this route is projected to increase from 10 per cent to 78 per cent on completion of
the high-speed railway.

The journey time will be significantly reduced when the line from Esenkent to Eskişehir is fully-
opened, with the benefits of travelling at high speed from city centre to city centre. The journey time
will fall from over 6.5 hours to 4 / 4.5 hours, and as such, it will be equivalent to the air route.

When the project is connected to the Marmary Crossing, seamless passenger transportation will
be provided between Europe and Asia, taking Turkey firmly into the modern age of the train,
and enhancing the case for Turkey‘s accession to the EU. There will be social benefits, too, with
positive impacts on economic, social and cultural life. Turkey will become the sixth country in
Europe and eighth in the world to be operating high-speed trains.

High-Speed Routes


APPENDIX III
TCDD Subsidiaries
TCDD, the state-owned mainline rail company is not only fully vertically-integrated, it also has
a diversified range of activities that include: manufacturing rolling stock and track components,
track and rolling stock maintenance, port operations, and more.

Wholly-owned Manufacturing Units
III

Map Showing TCDD Subsidiary Operations


III
III.1 Tülom sas – Locomotives

www.tulomsas.com.tr

Tülomsas, a wholly-owned subsidiary of TCDD, is the only locomotive supplier in Turkey. It has
a long history in manufacturing and maintenance, reaching back to 1894. To date, the company
has produced over 700 locomotives and 7,500 freight cars. The facility has a history of working
in joint venture partnerships with leading international companies. It has a wide range
of capabilities, including engines for defence equipment, such as tanks and vessels.

In 2003, Tülomsaş made an agreement with USA-company General Motors (GM) for technology
transfer. GM manufactured the first six of 89 units of DE 33,000 diesel electric mainline
locomotives for TCDD. Forty-two of the remaining 89 locomotives were built by 2006, whilst
the remaining 47 locomotives will be manufactured with 51 per cent local content.

More recently, a joint venture with General Electric (GE Transportation) has allowed the local
production and introduction of GE’s most technically-advanced engine, Powerhaul, a series of
locomotives that are also aimed at export from Turkey to markets in Northern Africa and the
Middle East. The new engine claims to save up to 9 per cent of fuel compared to other models.

Locomotive Factory
The locomotive factory is the largest plant in Tülomsas. It has extensive manufacturing
capabilities for a number of types of rolling stock, ranging from 360 to 4,300 HP, with all the
workshops and facilities required for loco manufacture.

Capacity

Category Capacity Units pa
Locomotives 60
Railway Maintenance Cars 100
Bogie Freight Cars 500
Diesel Engines 100
Alternators 100
Traction Motors 400
Steel and Iron Castings 2,500 mt


UKTI - Railway sector in Turkey, 2011 (ENG)

UKTI - Railway sector in Turkey, 2011 (ENG)

Recomendados

Recomendados

Mais conteúdo relacionado

Semelhante a UKTI - Railway sector in Turkey, 2011 (ENG)

Semelhante a UKTI - Railway sector in Turkey, 2011 (ENG) (20)

Mais de Unialta

Mais de Unialta (11)

Último

Último (20)

UKTI - Railway sector in Turkey, 2011 (ENG)