Law Nr. 6461 on the Liberalization of the Turkish Railway
Transportation (the "Law") has been
published on 1st of May in the Turkish Trade Registry
Gazette with Nr. 28634. This Law aims to make available passenger
and freight transportation with the most suitable, effective and
feasible rates, taking service quality into account.
With the passing of this Law, the General Directorate of Turkish
Republic State Railways will be restructured as a railway
infrastructure operator and a joint stock company with the title
"Turkish Republic State Railways Transportation
A.S." having the nature of a railway train operator
will be established which will become the fourth subsidiary of the
General Directorate of Turkish Republic State Railways. The Law
will enable public entities and those companies registered with the
trade registry i.e. all type of companies that can be registered
with trade registries, to build railway infrastructure and to make
its services available. Thus, the mentioned public entities and
companies will be entitled to be a railway infrastructure operator
and railway train operator. The scope of the Law is extended to the
railway infrastructure operators and railway train operators that
will be performing activities on the national railway
Any public entity and private company which would like build
and/or operate their own railways or those railways owned by other
companies have to be authorized by the Turkish Ministry of
Transport, Maritime Affairs, and Communications (the
"Ministry") in accordance with the Law.
These entities and companies have to determine the usage fee of the
railway infrastructure they own or operate on equal terms and
avoiding any discrimination between the train operators. If the
companies would like to build a railway infrastructure system, any
real estate required for the construction of such infrastructure
will be expropriated by the Ministry by collecting the required fee
for such expropriation from the company upon which a right of
easement will be constituted on the real estate in favour of the
company for a term of 49 years. At the end of such term, any asset
built on such real estate will be passed into the ownership of the
Turkish Treasury without paying any compensation or fee in
In order to maintain the provision of railway passenger
transportation services on a specific line on which any railway
train operator cannot provide services on commercial terms, the
Ministry would assign an operator to provide such services by
authorizing the latter under an agreement. For such purpose, the
operating company will have to enter into an agreement with the
Ministry in order to perform such "public service
obligation". It seems that the term, the length of
the transportation line, number of train traffic, applicable
passenger transportation fees, and payment terms will be determined
under a separate regulation.
There is no doubt that this Law, will increase the service
quality and speed of the Turkish Railway System by authorizing
private companies to renew and re-build the infrastructure of
Turkish railways, however, Turkish State Railways will be still
holding its monopoly to manage the railway traffic over the
national railway network. Furthermore, Turkish State Railways will
own a certain percentage of Turkish railway infrastructure of which
operation will be within the responsibility of Turkish State
Railways. Despite of the critics claiming that this Law will result
in the privatization of Turkish Railways, General Directorate of
Turkish Republic State Railways defends that the monopoly of the
directorate will not cease and be transferred to third parties by
the enactment of this Law and it further argues that the Law will
enable the usage of national railways in full capacity by making an
advantage in favour of the railways among other transportation
A much-anticipated judgment of the Court of Appeal has been handed down this morning that addresses the important issue of whether a charterer's failure to pay hire amounts to a breach of a condition...
A recent decision provides authority for the broadly accepted understanding that a "unit", for the purposes of limitation under Article IV Rule 5 of the Hague Rules, cannot apply to a bulk cargo – it can only mean a physical unit for shipment and not a unit of measurement or a customary freight unit (the unit of measurement used to calculate freight).
What sectors will face the biggest challenges in 2016/2017 in the UK & Europe? This series offers industry insights, real time updates, analysis of the market and key considerations for stakeholders to emerge stronger.
It is common practice for traders, usually when they are the sellers of the goods and the charterers of a vessel, to instruct the carrier to discharge cargoes without production of the original bills of lading and to agree to indemnify the carrier against the consequences of doing so.
We have received reports that the " STAR ZETA ", a 2003 built bulk carrier flying the Marshall Islands flag, has grounded in the river Parana and is blocking the channel.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).