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The eighth vessel, Marstal Maersk will undergo sea trials this month and will be followed by a further five sister ships in the current calendar year. Next year, Maersk will complete the order, when they receive the final batch of seven of these queens of the sea. By 2016 the P3 group, consisting of Maersk, MSC and CMA-CGM, will be operating a fleet of 29 vessels each with a capacity of between 18,000 and 19,000 teu. 

The G6 Alliance, which includes MOL, is evaluating whether to purchase container vessels of 18,000 or more teu, which would enter service by 2020 or slightly later. In the shorter term, the G6 Alliance will operate a fleet of 48 vessels, each with a capacity of 13 to 14,000 teu. Interestingly, MOL think that a Suezmax vessel could theoretically carry up to 20,000 teu. Not to be outdone by the other major lines, China Cosco Holdings, the main listed unit of the China Ocean Shipping Group, is planning to order five 14,000 teu ships and to develop its ties with China Shipping Group in the container sector. At the same time, China Shipping Container Lines received the CSCL Summer, the second of eight 10,036 TEU ships ordered from Chinese shipyards in October 2011 at a price of USD 94.3 million each.

However, Hapag Lloyd and CSAV are bucking the trend towards alliances by negotiating a merger, which would form the world’s fourth-largest container box fleet. This year, Hapag is due to take delivery of the last three 13,169 teu units of the 10-strong Hamburg Express class. The other Hamburg-based container line, Hamburg-Sud has been busily adding new tonnage with additional reefer plugs. It has long been speculated that the two residents of the Hanseatic city could eventually join forces to form a major player in the container shipping industry but so far no white smoke has been spotted above Ballindamm or Willy-Brandt Strasse. 

Seaspan has just taken delivery of the 10,000 teu Hanjin Buddha, the first of seven container ships ordered from Jiangsu Yangzijiang by Seaspan and Greater China Intermodal Investments, which are co-operating closely with their client, Hanjin. The Hanjin Buddha is expected to operate on the transpacific route, where it will eventually be joined in May by other similarly-sized vessels. The 8,452 teu Ever Loyal was delivered to Evergreen and is the 18th ship in a series of 30 ships built by Samsung. These ships are part of a 55-ship new building programme, to which the line will add seven new 14,000 teu vessels to be taken on charter. Evergreen is projecting to add just under 600,000 teu capacity to its fleet by 2017. Nevertheless, Evergreen has been criticised for not ordering more of the larger vessels. It could equally be argued that the 8,000 teu capacity allows Evergreen to operate their vessels either on the West Coast or on the East Coast trades by simply passing through the upgraded Panama Canal – once it is completed, of course. Indeed, it is anticipated that most ships with a capacity of 8 - 9,000 teu will eventually be redeployed from the Asia-Europe trade to the routes from Asia to the East Coast of America. 

Why, you may ask, is there is mad rush to upgrade to 18,000-teu vessels? The answer is quite simple: these giant vessels should offer cost savings of up to 30% per teu, and at a time when freight rate increases fail to gain traction, the lines have wholeheartedly embraced the mantra of “big is beautiful”. Equally important, prospective clients could be willing converts to container transport: Severstal just announced that they will use containers to transport steel coils. The Russian steel producer quotes more reliable delivery times plus projected cost savings of between 20 and 30 percent. When lines and major clients start “singing from the same hymn sheet”, we might have to view this more as a crusade rather than a revolution. 

Another Russian producer that may join in the crusade is Uralkali, which has just signed a deal to supply India with 800,000 tons of fertiliser per year. The contract started in April and the terms agreed are USD 322 per ton CFR (Cost and Freight). Divide that figure by, say, ten metric tons per teu and you quickly realise how important the projected slot savings will be in persuading key shippers like Uralkali to switch part of their shipments to containers, much as Fosagro is doing via the port of Ust-Luga. In December, Uralkali opened a brand new fertiliser terminal in the Port of Riga. Belkaliy has a similar-sized fertiliser terminal just to the south of Riga in the Lithuanian port of Klaipeda. The Belarussian potash producer enthusiastically embraced intermodal transport early on and has been co-operating with major lines on trial shipments of fertilisers in refrigerated containers on the return leg to banana plantations in Colombia. Belkaliy will benefit from the larger MSC vessels that will start to call at the ice-free port of Klaipeda, when the latest upgrades to the local terminals are completed this autumn. In addition to fertilisers and steel coils, the container lines will be targeting Russian producers of non-ferrous metals, pulp, paper and sawn timber to provide export cargos to fill up eastbound vessels to India and the Far East. In the cut-throat world of commodity trading, improved transit times on modern vessels combined with a hefty reduction in per-teu transport costs should ensure the eager shipping line representative a seat at the negotiating table. 

John Keir, Ross Learmont Ltd


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The G6 Alliance, which includes MOL, is evaluating whether to purchase container vessels of 18,000 or more teu, which would enter service by 2020 or slightly later. In the shorter term, the G6 Alliance will operate a fleet of 48 vessels, each with a capacity of 13 to 14,000 teu. Interestingly, MOL think that a Suezmax vessel could theoretically carry up to 20,000 teu. Not to be outdone by the other major lines, China Cosco Holdings, the main listed unit of the China Ocean Shipping Group, is planning to order five 14,000 teu ships and to develop its ties with China Shipping Group in the container sector. At the same time, China Shipping Container Lines received the CSCL Summer, the second of eight 10,036 TEU ships ordered from Chinese shipyards in October 2011 at a price of USD 94.3 million each.

However, Hapag Lloyd and CSAV are bucking the trend towards alliances by negotiating a merger, which would form the world’s fourth-largest container box fleet. This year, Hapag is due to take delivery of the last three 13,169 teu units of the 10-strong Hamburg Express class. The other Hamburg-based container line, Hamburg-Sud has been busily adding new tonnage with additional reefer plugs. It has long been speculated that the two residents of the Hanseatic city could eventually join forces to form a major player in the container shipping industry but so far no white smoke has been spotted above Ballindamm or Willy-Brandt Strasse. 

Seaspan has just taken delivery of the 10,000 teu Hanjin Buddha, the first of seven container ships ordered from Jiangsu Yangzijiang by Seaspan and Greater China Intermodal Investments, which are co-operating closely with their client, Hanjin. The Hanjin Buddha is expected to operate on the transpacific route, where it will eventually be joined in May by other similarly-sized vessels. The 8,452 teu Ever Loyal was delivered to Evergreen and is the 18th ship in a series of 30 ships built by Samsung. These ships are part of a 55-ship new building programme, to which the line will add seven new 14,000 teu vessels to be taken on charter. Evergreen is projecting to add just under 600,000 teu capacity to its fleet by 2017. Nevertheless, Evergreen has been criticised for not ordering more of the larger vessels. It could equally be argued that the 8,000 teu capacity allows Evergreen to operate their vessels either on the West Coast or on the East Coast trades by simply passing through the upgraded Panama Canal – once it is completed, of course. Indeed, it is anticipated that most ships with a capacity of 8 - 9,000 teu will eventually be redeployed from the Asia-Europe trade to the routes from Asia to the East Coast of America. 

Why, you may ask, is there is mad rush to upgrade to 18,000-teu vessels? The answer is quite simple: these giant vessels should offer cost savings of up to 30% per teu, and at a time when freight rate increases fail to gain traction, the lines have wholeheartedly embraced the mantra of “big is beautiful”. Equally important, prospective clients could be willing converts to container transport: Severstal just announced that they will use containers to transport steel coils. The Russian steel producer quotes more reliable delivery times plus projected cost savings of between 20 and 30 percent. When lines and major clients start “singing from the same hymn sheet”, we might have to view this more as a crusade rather than a revolution. 

Another Russian producer that may join in the crusade is Uralkali, which has just signed a deal to supply India with 800,000 tons of fertiliser per year. The contract started in April and the terms agreed are USD 322 per ton CFR (Cost and Freight). Divide that figure by, say, ten metric tons per teu and you quickly realise how important the projected slot savings will be in persuading key shippers like Uralkali to switch part of their shipments to containers, much as Fosagro is doing via the port of Ust-Luga. In December, Uralkali opened a brand new fertiliser terminal in the Port of Riga. Belkaliy has a similar-sized fertiliser terminal just to the south of Riga in the Lithuanian port of Klaipeda. The Belarussian potash producer enthusiastically embraced intermodal transport early on and has been co-operating with major lines on trial shipments of fertilisers in refrigerated containers on the return leg to banana plantations in Colombia. Belkaliy will benefit from the larger MSC vessels that will start to call at the ice-free port of Klaipeda, when the latest upgrades to the local terminals are completed this autumn. In addition to fertilisers and steel coils, the container lines will be targeting Russian producers of non-ferrous metals, pulp, paper and sawn timber to provide export cargos to fill up eastbound vessels to India and the Far East. In the cut-throat world of commodity trading, improved transit times on modern vessels combined with a hefty reduction in per-teu transport costs should ensure the eager shipping line representative a seat at the negotiating table. 

John Keir, Ross Learmont Ltd


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Seaspan has just taken delivery of the 10,000 teu Hanjin Buddha, the first of seven container ships ordered from Jiangsu Yangzijiang by Seaspan and Greater China Intermodal Investments, which are co-operating closely with their client, Hanjin. The Hanjin Buddha is expected to operate on the transpacific route, where it will eventually be joined in May by other similarly-sized vessels. The 8,452 teu Ever Loyal was delivered to Evergreen and is the 18th ship in a series of 30 ships built by Samsung. These ships are part of a 55-ship new building programme, to which the line will add seven new 14,000 teu vessels to be taken on charter. Evergreen is projecting to add just under 600,000 teu capacity to its fleet by 2017. Nevertheless, Evergreen has been criticised for not ordering more of the larger vessels. It could equally be argued that the 8,000 teu capacity allows Evergreen to operate their vessels either on the West Coast or on the East Coast trades by simply passing through the upgraded Panama Canal – once it is completed, of course. Indeed, it is anticipated that most ships with a capacity of 8 - 9,000 teu will eventually be redeployed from the Asia-Europe trade to the routes from Asia to the East Coast of America. 

Why, you may ask, is there is mad rush to upgrade to 18,000-teu vessels? The answer is quite simple: these giant vessels should offer cost savings of up to 30% per teu, and at a time when freight rate increases fail to gain traction, the lines have wholeheartedly embraced the mantra of “big is beautiful”. Equally important, prospective clients could be willing converts to container transport: Severstal just announced that they will use containers to transport steel coils. The Russian steel producer quotes more reliable delivery times plus projected cost savings of between 20 and 30 percent. When lines and major clients start “singing from the same hymn sheet”, we might have to view this more as a crusade rather than a revolution. 

Another Russian producer that may join in the crusade is Uralkali, which has just signed a deal to supply India with 800,000 tons of fertiliser per year. The contract started in April and the terms agreed are USD 322 per ton CFR (Cost and Freight). Divide that figure by, say, ten metric tons per teu and you quickly realise how important the projected slot savings will be in persuading key shippers like Uralkali to switch part of their shipments to containers, much as Fosagro is doing via the port of Ust-Luga. In December, Uralkali opened a brand new fertiliser terminal in the Port of Riga. Belkaliy has a similar-sized fertiliser terminal just to the south of Riga in the Lithuanian port of Klaipeda. The Belarussian potash producer enthusiastically embraced intermodal transport early on and has been co-operating with major lines on trial shipments of fertilisers in refrigerated containers on the return leg to banana plantations in Colombia. Belkaliy will benefit from the larger MSC vessels that will start to call at the ice-free port of Klaipeda, when the latest upgrades to the local terminals are completed this autumn. In addition to fertilisers and steel coils, the container lines will be targeting Russian producers of non-ferrous metals, pulp, paper and sawn timber to provide export cargos to fill up eastbound vessels to India and the Far East. In the cut-throat world of commodity trading, improved transit times on modern vessels combined with a hefty reduction in per-teu transport costs should ensure the eager shipping line representative a seat at the negotiating table. 

John Keir, Ross Learmont Ltd


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The eighth vessel, Marstal Maersk will undergo sea trials this month and will be followed by a further five sister ships in the current calendar year. Next year, Maersk will complete the order, when they receive the final batch of seven of these queens of the sea. By 2016 the P3 group, consisting of Maersk, MSC and CMA-CGM, will be operating a fleet of 29 vessels each with a capacity of between 18,000 and 19,000 teu. 

The G6 Alliance, which includes MOL, is evaluating whether to purchase container vessels of 18,000 or more teu, which would enter service by 2020 or slightly later. In the shorter term, the G6 Alliance will operate a fleet of 48 vessels, each with a capacity of 13 to 14,000 teu. Interestingly, MOL think that a Suezmax vessel could theoretically carry up to 20,000 teu. Not to be outdone by the other major lines, China Cosco Holdings, the main listed unit of the China Ocean Shipping Group, is planning to order five 14,000 teu ships and to develop its ties with China Shipping Group in the container sector. At the same time, China Shipping Container Lines received the CSCL Summer, the second of eight 10,036 TEU ships ordered from Chinese shipyards in October 2011 at a price of USD 94.3 million each.

However, Hapag Lloyd and CSAV are bucking the trend towards alliances by negotiating a merger, which would form the world’s fourth-largest container box fleet. This year, Hapag is due to take delivery of the last three 13,169 teu units of the 10-strong Hamburg Express class. The other Hamburg-based container line, Hamburg-Sud has been busily adding new tonnage with additional reefer plugs. It has long been speculated that the two residents of the Hanseatic city could eventually join forces to form a major player in the container shipping industry but so far no white smoke has been spotted above Ballindamm or Willy-Brandt Strasse. 

Seaspan has just taken delivery of the 10,000 teu Hanjin Buddha, the first of seven container ships ordered from Jiangsu Yangzijiang by Seaspan and Greater China Intermodal Investments, which are co-operating closely with their client, Hanjin. The Hanjin Buddha is expected to operate on the transpacific route, where it will eventually be joined in May by other similarly-sized vessels. The 8,452 teu Ever Loyal was delivered to Evergreen and is the 18th ship in a series of 30 ships built by Samsung. These ships are part of a 55-ship new building programme, to which the line will add seven new 14,000 teu vessels to be taken on charter. Evergreen is projecting to add just under 600,000 teu capacity to its fleet by 2017. Nevertheless, Evergreen has been criticised for not ordering more of the larger vessels. It could equally be argued that the 8,000 teu capacity allows Evergreen to operate their vessels either on the West Coast or on the East Coast trades by simply passing through the upgraded Panama Canal – once it is completed, of course. Indeed, it is anticipated that most ships with a capacity of 8 - 9,000 teu will eventually be redeployed from the Asia-Europe trade to the routes from Asia to the East Coast of America. 

Why, you may ask, is there is mad rush to upgrade to 18,000-teu vessels? The answer is quite simple: these giant vessels should offer cost savings of up to 30% per teu, and at a time when freight rate increases fail to gain traction, the lines have wholeheartedly embraced the mantra of “big is beautiful”. Equally important, prospective clients could be willing converts to container transport: Severstal just announced that they will use containers to transport steel coils. The Russian steel producer quotes more reliable delivery times plus projected cost savings of between 20 and 30 percent. When lines and major clients start “singing from the same hymn sheet”, we might have to view this more as a crusade rather than a revolution. 

Another Russian producer that may join in the crusade is Uralkali, which has just signed a deal to supply India with 800,000 tons of fertiliser per year. The contract started in April and the terms agreed are USD 322 per ton CFR (Cost and Freight). Divide that figure by, say, ten metric tons per teu and you quickly realise how important the projected slot savings will be in persuading key shippers like Uralkali to switch part of their shipments to containers, much as Fosagro is doing via the port of Ust-Luga. In December, Uralkali opened a brand new fertiliser terminal in the Port of Riga. Belkaliy has a similar-sized fertiliser terminal just to the south of Riga in the Lithuanian port of Klaipeda. The Belarussian potash producer enthusiastically embraced intermodal transport early on and has been co-operating with major lines on trial shipments of fertilisers in refrigerated containers on the return leg to banana plantations in Colombia. Belkaliy will benefit from the larger MSC vessels that will start to call at the ice-free port of Klaipeda, when the latest upgrades to the local terminals are completed this autumn. In addition to fertilisers and steel coils, the container lines will be targeting Russian producers of non-ferrous metals, pulp, paper and sawn timber to provide export cargos to fill up eastbound vessels to India and the Far East. In the cut-throat world of commodity trading, improved transit times on modern vessels combined with a hefty reduction in per-teu transport costs should ensure the eager shipping line representative a seat at the negotiating table. 

John Keir, Ross Learmont Ltd


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Fairly and Equally



– Mr Karaman, could you please tell us about your experience as CEO of Turkish Railways? What was the most difficult period?



– When I took up the position after the neglect of the railways for 50 years, the existing tracks were in a very bad condition, the rolling stock expired and worse, the railmen lost their hope and the railways were forgotten in the public’s eye. The people used to see the railways, which used to make a loss, as a burden.  

We had two options; a loss maker establishment would either be closed down or the railways would be raised with investments similar to the examples in other developed countries. We presented our Government some reports that would, again, renew the railways which carried the burden, the soldier and the ammunition of this nation during the years of the Independence War for Independence. The plan for railway renewal was accepted as a Government Policy with the great support of our Esteemed Prime Minister being in the first place, our Minister, members of ministerial cabinet, council of transport in the National Assembly and the parliamentarians and then we reached our present level. 



– And what are your targets now?



– The targets for the “Railway Sector” were defined during “11th Transportation, Maritime Affairs and Communications Forum” which shaped the 2023 and 2035 Transportation Vision of our country. So if we speak about 2013, the main goal is reaching to a total of 25.000 km of railway lines by constructing a total of 13.000 km of railway lines, 3500 km of which is High Speed Line, 8.500 km of which is rapid lines and 1.000 km of which is conventional lines. 

Among the targets are also the synchronization of the existing fleet with high speed and rapid lines and manufacturing any kind of railway vehicles in our country, ensuring the development of combined and mixed freight transportation by increasing the branch line connections to logistic centers, factories, organized industrial zones and ports with high volumes of freight. Setting up and activating a Railway Transportation Institute, and much more.



– Seems like all countries are talking about the best way to organize the railway sector. Reform is taking place in many states. What is your opinion on this matter?



– The Law on the Liberalization of the Turkish Railway Transportation came into effect last May. The General Directorate of Turkish State Railways has been restructured as the railway infrastructure operator and provide railway infrastructure services to railway operators. The regulation and management monopoly authority of the railway traffic will be given to TCDD. In this way, it is possible to manage the central train traffic of the national railway network, to provide a secure railway to the railway carriers and use the capacity most efficiently for performance of rail infrastructure functions and safe train operation.

TCDD Transport JSC, which is the affiliate company of TCDD and under statutory decree numbered 233, will be established to make services regarding freight and passenger transportation on railway infrastructure based on commercial laws and their supplementary services. The aforementioned public train operator will perform its freight and passenger transportation with its own personnel and trains by competing on an equal footing.

On condition of getting autho­-rization from Ministry of Transportation, Maritime Affairs and Communications, other public corporate entities or incorporated companies which have a Turkish Trade Register number, have the right to be a railway infrastructure operator (with the exception of regulating and managing duties)  and railway train operator.

TCDD shall treat fairly and equally with all the public and private train operators when doing its duty.

Currently, freight and passenger transportation on railways are made by TCDD. In the current situation also the wagons belonging to the private sector have been transported by TCDD personnel and locomotives. With this law, the market of freight and passenger transportation on railway will be liberalized. Consequently, TCDD Transport JSC. and other railway train operating companies to be established will have the opportunity of carrying out freight and passenger transportation by their own personnel and trains on railway lines.



Progress Has Been Made  



– The first high-speed train for TCDD Company was bought from CAF Company in the beginning of 2000. Tell us, please, about high-speed rail in Turkey today What trains do you have now?



– 12 HT650000 type High Speed Trains have been procured from Spanish CAF and these have been used on Ankara-Konya, Ankara-Eskişehir and Konya-Eskişehir lines.

In addition to this, within the scope of the agreement signed with SIEMENS AG in 2013; 1 train, which is at the stage of painting, will put into service later this year. On the other hand, in total 106 High Speed Trains will be procured and the tendering  process is on-going  in parallel with the expansion of the core High Speed and High Speed network.

High Speed Train Operation on Ankara-Konya, Ankara-Eskişehir and Konya-Eskişehir lines has begun. With the completion of the test drive of the Eskişehir – Istanbul High Speed Line, High Speed Train Operation between Ankara – Istanbul will be started.

Upon the inauguration of this line, High Speed Trains will be operated also between Konya-İstanbul.

As it has been mentioned before, construction works are on-going on Bursa, İzmir, Sivas, Erzincan Lines.



– Last year the “Marmaray” tunnel was opened. This underwater railway tunnel under the Bosporus Strait was built to connect the European and Asian parts of Istanbul. What are the results? 



– As is already known, the planning studies of Marmaray Project started in 1860 and the Marmaray idea goes back more than a century. The project was implemented in İstanbul which is the cradle of many civilizations but it is a world project from the point of its function. 

As of today, Marmaray has performed a service on 14 km of line between Ayrılık Çeşmesi – Üsküdar – Kazlı Çeşme and it is possible to travel from Asia to Europe in only 4 minutes. In comparison with the transportation modes, it is apparent that Marmaray is not being affected by bad weather conditions. The Transportation of Istanbul took a deep breath with the help of Marmaray on February 19, 2014 that day there was a scotch mist and 171 thousands of passengers were transported through Marmaray. A new record has been broken by 175 thousands of passengers on March 23, 2014.

Up to the present, 18 million passengers have been transported through Marmaray.

Within the scope of the project, by the realization of the other intercity rail systems which will be operated integrated with the YHT line and upgrading of the Kazlıçeşme – Halkalı  and Ayrılık Çeşmesi – Gebze lines.the share of rail systems in the Istanbul transportation network will increase to 28%. It has also prevented the emission of 425 tons of toxic gas into the air each year.



– Could you please talk about your National Train Project?



– With the construction of modern railway lines in our country, the “National Train Project” the design and technology of which belongs to our country was started in order to produce a new generation railway vehicles. 

Within the scope of the project, National High Speed Trains, Diesel Trains (DMU), Electrified Trains (EMU) and Freight Wagons will be developed. 

Our affiliated companies TÜLOMSAŞ (Turkish Locomotive and Engine Industry Inc.), TÜVASAŞ (Turkish Coach Industry Inc) and TÜDEMSAŞ (Turkish Railway Machines Industry Inc.) are the project coordinators with all their potential and capability under the coordination of our Directorate General. 

İstanbul Technical University (İTÜ) as the project partner and TÜBİTAK, ASELSAN, other universities and also other state and private organizations are embraced as stakeholders.

It's target is to produce the prototypes with a share of % 51 national productions and after these works; it's aim is to increase the nationalized share to %85 by the year 2023. 

For National High Speed Train and for The New Generation EMU-DMUs the conceptual design and the industrial design works are completed, the works are going on with the chosen concept. For the New Generation National Freight Wagon, the conceptual design is completed and engineering design works for the Platform Type Wagon are ongoing.



– Besides the innovations, it’s a very important and popular theme at the different transport world events  – the development of the railway electrification system. What can you say about the Turkish railway’s experience?



– A good number of rail systems around the world have started to transform their current lines into the electrical lines for 20-30 years. Electrified systems are more economical than the other systems from the point of fuel. Electrical systems have a high traction power and a capability of hauling high tonnage freight. It is expected that this trend will continue in the forthcoming years because it is more advantageous and environmentally friendly than other systems from the point of noise and environmental pollution.

The first electrical train operation was made between Sirkeci – Halkalı areas in 1955 as suburban services. Electrical operation has been made on 26% of the total track of TCDD in 2012 and with the new high speed lines and transformation of the current lines into electrical lines it is expected that this rate will increase.

Recently, considerable progress has been made in our country's railway sector. There have been significant investments in updating and transforming the conventional lines to electrical lines and constructing new railway lines. As in other systems, it has been also adopted the latest technological developments in electrification systems. 



– Are you going to cooperate with Russian Railways on some matters?



– Turkey cooperates with the countries which are most highly developed in the railway sector and also with the countries of the region. One of these countries is Russia. Combined transportation was started with the Turkey-Russia Train Ferry Line built between Samsun Port of Turkey and Kavkaz Port of Russia. 87.627 tons of freight was carried with 85 journeys up to today. 

The President of Russian Railways, Mr Vladimir Yakunin has held the position of Chairman of the International Union of Railways (UIC) since 2013. As it is known, UIC is the most important international organization in the field of railways. Since 2007 I have been the Chairman of Regional Assembly of Middle East (RAME) and a member of the UIC Executive Board. Thus, I am in close collaboration with Mr Yakunin. I believe that this collaboration and friendly relations will increasingly continue in the future.

By Kirill Kovalenko


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Fairly and Equally



– Mr Karaman, could you please tell us about your experience as CEO of Turkish Railways? What was the most difficult period?



– When I took up the position after the neglect of the railways for 50 years, the existing tracks were in a very bad condition, the rolling stock expired and worse, the railmen lost their hope and the railways were forgotten in the public’s eye. The people used to see the railways, which used to make a loss, as a burden.  

We had two options; a loss maker establishment would either be closed down or the railways would be raised with investments similar to the examples in other developed countries. We presented our Government some reports that would, again, renew the railways which carried the burden, the soldier and the ammunition of this nation during the years of the Independence War for Independence. The plan for railway renewal was accepted as a Government Policy with the great support of our Esteemed Prime Minister being in the first place, our Minister, members of ministerial cabinet, council of transport in the National Assembly and the parliamentarians and then we reached our present level. 



– And what are your targets now?



– The targets for the “Railway Sector” were defined during “11th Transportation, Maritime Affairs and Communications Forum” which shaped the 2023 and 2035 Transportation Vision of our country. So if we speak about 2013, the main goal is reaching to a total of 25.000 km of railway lines by constructing a total of 13.000 km of railway lines, 3500 km of which is High Speed Line, 8.500 km of which is rapid lines and 1.000 km of which is conventional lines. 

Among the targets are also the synchronization of the existing fleet with high speed and rapid lines and manufacturing any kind of railway vehicles in our country, ensuring the development of combined and mixed freight transportation by increasing the branch line connections to logistic centers, factories, organized industrial zones and ports with high volumes of freight. Setting up and activating a Railway Transportation Institute, and much more.



– Seems like all countries are talking about the best way to organize the railway sector. Reform is taking place in many states. What is your opinion on this matter?



– The Law on the Liberalization of the Turkish Railway Transportation came into effect last May. The General Directorate of Turkish State Railways has been restructured as the railway infrastructure operator and provide railway infrastructure services to railway operators. The regulation and management monopoly authority of the railway traffic will be given to TCDD. In this way, it is possible to manage the central train traffic of the national railway network, to provide a secure railway to the railway carriers and use the capacity most efficiently for performance of rail infrastructure functions and safe train operation.

TCDD Transport JSC, which is the affiliate company of TCDD and under statutory decree numbered 233, will be established to make services regarding freight and passenger transportation on railway infrastructure based on commercial laws and their supplementary services. The aforementioned public train operator will perform its freight and passenger transportation with its own personnel and trains by competing on an equal footing.

On condition of getting autho­-rization from Ministry of Transportation, Maritime Affairs and Communications, other public corporate entities or incorporated companies which have a Turkish Trade Register number, have the right to be a railway infrastructure operator (with the exception of regulating and managing duties)  and railway train operator.

TCDD shall treat fairly and equally with all the public and private train operators when doing its duty.

Currently, freight and passenger transportation on railways are made by TCDD. In the current situation also the wagons belonging to the private sector have been transported by TCDD personnel and locomotives. With this law, the market of freight and passenger transportation on railway will be liberalized. Consequently, TCDD Transport JSC. and other railway train operating companies to be established will have the opportunity of carrying out freight and passenger transportation by their own personnel and trains on railway lines.



Progress Has Been Made  



– The first high-speed train for TCDD Company was bought from CAF Company in the beginning of 2000. Tell us, please, about high-speed rail in Turkey today What trains do you have now?



– 12 HT650000 type High Speed Trains have been procured from Spanish CAF and these have been used on Ankara-Konya, Ankara-Eskişehir and Konya-Eskişehir lines.

In addition to this, within the scope of the agreement signed with SIEMENS AG in 2013; 1 train, which is at the stage of painting, will put into service later this year. On the other hand, in total 106 High Speed Trains will be procured and the tendering  process is on-going  in parallel with the expansion of the core High Speed and High Speed network.

High Speed Train Operation on Ankara-Konya, Ankara-Eskişehir and Konya-Eskişehir lines has begun. With the completion of the test drive of the Eskişehir – Istanbul High Speed Line, High Speed Train Operation between Ankara – Istanbul will be started.

Upon the inauguration of this line, High Speed Trains will be operated also between Konya-İstanbul.

As it has been mentioned before, construction works are on-going on Bursa, İzmir, Sivas, Erzincan Lines.



– Last year the “Marmaray” tunnel was opened. This underwater railway tunnel under the Bosporus Strait was built to connect the European and Asian parts of Istanbul. What are the results? 



– As is already known, the planning studies of Marmaray Project started in 1860 and the Marmaray idea goes back more than a century. The project was implemented in İstanbul which is the cradle of many civilizations but it is a world project from the point of its function. 

As of today, Marmaray has performed a service on 14 km of line between Ayrılık Çeşmesi – Üsküdar – Kazlı Çeşme and it is possible to travel from Asia to Europe in only 4 minutes. In comparison with the transportation modes, it is apparent that Marmaray is not being affected by bad weather conditions. The Transportation of Istanbul took a deep breath with the help of Marmaray on February 19, 2014 that day there was a scotch mist and 171 thousands of passengers were transported through Marmaray. A new record has been broken by 175 thousands of passengers on March 23, 2014.

Up to the present, 18 million passengers have been transported through Marmaray.

Within the scope of the project, by the realization of the other intercity rail systems which will be operated integrated with the YHT line and upgrading of the Kazlıçeşme – Halkalı  and Ayrılık Çeşmesi – Gebze lines.the share of rail systems in the Istanbul transportation network will increase to 28%. It has also prevented the emission of 425 tons of toxic gas into the air each year.



– Could you please talk about your National Train Project?



– With the construction of modern railway lines in our country, the “National Train Project” the design and technology of which belongs to our country was started in order to produce a new generation railway vehicles. 

Within the scope of the project, National High Speed Trains, Diesel Trains (DMU), Electrified Trains (EMU) and Freight Wagons will be developed. 

Our affiliated companies TÜLOMSAŞ (Turkish Locomotive and Engine Industry Inc.), TÜVASAŞ (Turkish Coach Industry Inc) and TÜDEMSAŞ (Turkish Railway Machines Industry Inc.) are the project coordinators with all their potential and capability under the coordination of our Directorate General. 

İstanbul Technical University (İTÜ) as the project partner and TÜBİTAK, ASELSAN, other universities and also other state and private organizations are embraced as stakeholders.

It's target is to produce the prototypes with a share of % 51 national productions and after these works; it's aim is to increase the nationalized share to %85 by the year 2023. 

For National High Speed Train and for The New Generation EMU-DMUs the conceptual design and the industrial design works are completed, the works are going on with the chosen concept. For the New Generation National Freight Wagon, the conceptual design is completed and engineering design works for the Platform Type Wagon are ongoing.



– Besides the innovations, it’s a very important and popular theme at the different transport world events  – the development of the railway electrification system. What can you say about the Turkish railway’s experience?



– A good number of rail systems around the world have started to transform their current lines into the electrical lines for 20-30 years. Electrified systems are more economical than the other systems from the point of fuel. Electrical systems have a high traction power and a capability of hauling high tonnage freight. It is expected that this trend will continue in the forthcoming years because it is more advantageous and environmentally friendly than other systems from the point of noise and environmental pollution.

The first electrical train operation was made between Sirkeci – Halkalı areas in 1955 as suburban services. Electrical operation has been made on 26% of the total track of TCDD in 2012 and with the new high speed lines and transformation of the current lines into electrical lines it is expected that this rate will increase.

Recently, considerable progress has been made in our country's railway sector. There have been significant investments in updating and transforming the conventional lines to electrical lines and constructing new railway lines. As in other systems, it has been also adopted the latest technological developments in electrification systems. 



– Are you going to cooperate with Russian Railways on some matters?



– Turkey cooperates with the countries which are most highly developed in the railway sector and also with the countries of the region. One of these countries is Russia. Combined transportation was started with the Turkey-Russia Train Ferry Line built between Samsun Port of Turkey and Kavkaz Port of Russia. 87.627 tons of freight was carried with 85 journeys up to today. 

The President of Russian Railways, Mr Vladimir Yakunin has held the position of Chairman of the International Union of Railways (UIC) since 2013. As it is known, UIC is the most important international organization in the field of railways. Since 2007 I have been the Chairman of Regional Assembly of Middle East (RAME) and a member of the UIC Executive Board. Thus, I am in close collaboration with Mr Yakunin. I believe that this collaboration and friendly relations will increasingly continue in the future.

By Kirill Kovalenko


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But the Turkish railway system wasn’t always so innovative. When Süleyman Karaman, current President and Director General of TCDD, took up his post, the sector was deep in crisis. In his interview Mr Karaman talks about his experience and further ambitious infrastructure projects.
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Fairly and Equally



– Mr Karaman, could you please tell us about your experience as CEO of Turkish Railways? What was the most difficult period?



– When I took up the position after the neglect of the railways for 50 years, the existing tracks were in a very bad condition, the rolling stock expired and worse, the railmen lost their hope and the railways were forgotten in the public’s eye. The people used to see the railways, which used to make a loss, as a burden.  

We had two options; a loss maker establishment would either be closed down or the railways would be raised with investments similar to the examples in other developed countries. We presented our Government some reports that would, again, renew the railways which carried the burden, the soldier and the ammunition of this nation during the years of the Independence War for Independence. The plan for railway renewal was accepted as a Government Policy with the great support of our Esteemed Prime Minister being in the first place, our Minister, members of ministerial cabinet, council of transport in the National Assembly and the parliamentarians and then we reached our present level. 



– And what are your targets now?



– The targets for the “Railway Sector” were defined during “11th Transportation, Maritime Affairs and Communications Forum” which shaped the 2023 and 2035 Transportation Vision of our country. So if we speak about 2013, the main goal is reaching to a total of 25.000 km of railway lines by constructing a total of 13.000 km of railway lines, 3500 km of which is High Speed Line, 8.500 km of which is rapid lines and 1.000 km of which is conventional lines. 

Among the targets are also the synchronization of the existing fleet with high speed and rapid lines and manufacturing any kind of railway vehicles in our country, ensuring the development of combined and mixed freight transportation by increasing the branch line connections to logistic centers, factories, organized industrial zones and ports with high volumes of freight. Setting up and activating a Railway Transportation Institute, and much more.



– Seems like all countries are talking about the best way to organize the railway sector. Reform is taking place in many states. What is your opinion on this matter?



– The Law on the Liberalization of the Turkish Railway Transportation came into effect last May. The General Directorate of Turkish State Railways has been restructured as the railway infrastructure operator and provide railway infrastructure services to railway operators. The regulation and management monopoly authority of the railway traffic will be given to TCDD. In this way, it is possible to manage the central train traffic of the national railway network, to provide a secure railway to the railway carriers and use the capacity most efficiently for performance of rail infrastructure functions and safe train operation.

TCDD Transport JSC, which is the affiliate company of TCDD and under statutory decree numbered 233, will be established to make services regarding freight and passenger transportation on railway infrastructure based on commercial laws and their supplementary services. The aforementioned public train operator will perform its freight and passenger transportation with its own personnel and trains by competing on an equal footing.

On condition of getting autho­-rization from Ministry of Transportation, Maritime Affairs and Communications, other public corporate entities or incorporated companies which have a Turkish Trade Register number, have the right to be a railway infrastructure operator (with the exception of regulating and managing duties)  and railway train operator.

TCDD shall treat fairly and equally with all the public and private train operators when doing its duty.

Currently, freight and passenger transportation on railways are made by TCDD. In the current situation also the wagons belonging to the private sector have been transported by TCDD personnel and locomotives. With this law, the market of freight and passenger transportation on railway will be liberalized. Consequently, TCDD Transport JSC. and other railway train operating companies to be established will have the opportunity of carrying out freight and passenger transportation by their own personnel and trains on railway lines.



Progress Has Been Made  



– The first high-speed train for TCDD Company was bought from CAF Company in the beginning of 2000. Tell us, please, about high-speed rail in Turkey today What trains do you have now?



– 12 HT650000 type High Speed Trains have been procured from Spanish CAF and these have been used on Ankara-Konya, Ankara-Eskişehir and Konya-Eskişehir lines.

In addition to this, within the scope of the agreement signed with SIEMENS AG in 2013; 1 train, which is at the stage of painting, will put into service later this year. On the other hand, in total 106 High Speed Trains will be procured and the tendering  process is on-going  in parallel with the expansion of the core High Speed and High Speed network.

High Speed Train Operation on Ankara-Konya, Ankara-Eskişehir and Konya-Eskişehir lines has begun. With the completion of the test drive of the Eskişehir – Istanbul High Speed Line, High Speed Train Operation between Ankara – Istanbul will be started.

Upon the inauguration of this line, High Speed Trains will be operated also between Konya-İstanbul.

As it has been mentioned before, construction works are on-going on Bursa, İzmir, Sivas, Erzincan Lines.



– Last year the “Marmaray” tunnel was opened. This underwater railway tunnel under the Bosporus Strait was built to connect the European and Asian parts of Istanbul. What are the results? 



– As is already known, the planning studies of Marmaray Project started in 1860 and the Marmaray idea goes back more than a century. The project was implemented in İstanbul which is the cradle of many civilizations but it is a world project from the point of its function. 

As of today, Marmaray has performed a service on 14 km of line between Ayrılık Çeşmesi – Üsküdar – Kazlı Çeşme and it is possible to travel from Asia to Europe in only 4 minutes. In comparison with the transportation modes, it is apparent that Marmaray is not being affected by bad weather conditions. The Transportation of Istanbul took a deep breath with the help of Marmaray on February 19, 2014 that day there was a scotch mist and 171 thousands of passengers were transported through Marmaray. A new record has been broken by 175 thousands of passengers on March 23, 2014.

Up to the present, 18 million passengers have been transported through Marmaray.

Within the scope of the project, by the realization of the other intercity rail systems which will be operated integrated with the YHT line and upgrading of the Kazlıçeşme – Halkalı  and Ayrılık Çeşmesi – Gebze lines.the share of rail systems in the Istanbul transportation network will increase to 28%. It has also prevented the emission of 425 tons of toxic gas into the air each year.



– Could you please talk about your National Train Project?



– With the construction of modern railway lines in our country, the “National Train Project” the design and technology of which belongs to our country was started in order to produce a new generation railway vehicles. 

Within the scope of the project, National High Speed Trains, Diesel Trains (DMU), Electrified Trains (EMU) and Freight Wagons will be developed. 

Our affiliated companies TÜLOMSAŞ (Turkish Locomotive and Engine Industry Inc.), TÜVASAŞ (Turkish Coach Industry Inc) and TÜDEMSAŞ (Turkish Railway Machines Industry Inc.) are the project coordinators with all their potential and capability under the coordination of our Directorate General. 

İstanbul Technical University (İTÜ) as the project partner and TÜBİTAK, ASELSAN, other universities and also other state and private organizations are embraced as stakeholders.

It's target is to produce the prototypes with a share of % 51 national productions and after these works; it's aim is to increase the nationalized share to %85 by the year 2023. 

For National High Speed Train and for The New Generation EMU-DMUs the conceptual design and the industrial design works are completed, the works are going on with the chosen concept. For the New Generation National Freight Wagon, the conceptual design is completed and engineering design works for the Platform Type Wagon are ongoing.



– Besides the innovations, it’s a very important and popular theme at the different transport world events  – the development of the railway electrification system. What can you say about the Turkish railway’s experience?



– A good number of rail systems around the world have started to transform their current lines into the electrical lines for 20-30 years. Electrified systems are more economical than the other systems from the point of fuel. Electrical systems have a high traction power and a capability of hauling high tonnage freight. It is expected that this trend will continue in the forthcoming years because it is more advantageous and environmentally friendly than other systems from the point of noise and environmental pollution.

The first electrical train operation was made between Sirkeci – Halkalı areas in 1955 as suburban services. Electrical operation has been made on 26% of the total track of TCDD in 2012 and with the new high speed lines and transformation of the current lines into electrical lines it is expected that this rate will increase.

Recently, considerable progress has been made in our country's railway sector. There have been significant investments in updating and transforming the conventional lines to electrical lines and constructing new railway lines. As in other systems, it has been also adopted the latest technological developments in electrification systems. 



– Are you going to cooperate with Russian Railways on some matters?



– Turkey cooperates with the countries which are most highly developed in the railway sector and also with the countries of the region. One of these countries is Russia. Combined transportation was started with the Turkey-Russia Train Ferry Line built between Samsun Port of Turkey and Kavkaz Port of Russia. 87.627 tons of freight was carried with 85 journeys up to today. 

The President of Russian Railways, Mr Vladimir Yakunin has held the position of Chairman of the International Union of Railways (UIC) since 2013. As it is known, UIC is the most important international organization in the field of railways. Since 2007 I have been the Chairman of Regional Assembly of Middle East (RAME) and a member of the UIC Executive Board. Thus, I am in close collaboration with Mr Yakunin. I believe that this collaboration and friendly relations will increasingly continue in the future.

By Kirill Kovalenko


    [~DETAIL_TEXT] => 
Fairly and Equally



– Mr Karaman, could you please tell us about your experience as CEO of Turkish Railways? What was the most difficult period?



– When I took up the position after the neglect of the railways for 50 years, the existing tracks were in a very bad condition, the rolling stock expired and worse, the railmen lost their hope and the railways were forgotten in the public’s eye. The people used to see the railways, which used to make a loss, as a burden.  

We had two options; a loss maker establishment would either be closed down or the railways would be raised with investments similar to the examples in other developed countries. We presented our Government some reports that would, again, renew the railways which carried the burden, the soldier and the ammunition of this nation during the years of the Independence War for Independence. The plan for railway renewal was accepted as a Government Policy with the great support of our Esteemed Prime Minister being in the first place, our Minister, members of ministerial cabinet, council of transport in the National Assembly and the parliamentarians and then we reached our present level. 



– And what are your targets now?



– The targets for the “Railway Sector” were defined during “11th Transportation, Maritime Affairs and Communications Forum” which shaped the 2023 and 2035 Transportation Vision of our country. So if we speak about 2013, the main goal is reaching to a total of 25.000 km of railway lines by constructing a total of 13.000 km of railway lines, 3500 km of which is High Speed Line, 8.500 km of which is rapid lines and 1.000 km of which is conventional lines. 

Among the targets are also the synchronization of the existing fleet with high speed and rapid lines and manufacturing any kind of railway vehicles in our country, ensuring the development of combined and mixed freight transportation by increasing the branch line connections to logistic centers, factories, organized industrial zones and ports with high volumes of freight. Setting up and activating a Railway Transportation Institute, and much more.



– Seems like all countries are talking about the best way to organize the railway sector. Reform is taking place in many states. What is your opinion on this matter?



– The Law on the Liberalization of the Turkish Railway Transportation came into effect last May. The General Directorate of Turkish State Railways has been restructured as the railway infrastructure operator and provide railway infrastructure services to railway operators. The regulation and management monopoly authority of the railway traffic will be given to TCDD. In this way, it is possible to manage the central train traffic of the national railway network, to provide a secure railway to the railway carriers and use the capacity most efficiently for performance of rail infrastructure functions and safe train operation.

TCDD Transport JSC, which is the affiliate company of TCDD and under statutory decree numbered 233, will be established to make services regarding freight and passenger transportation on railway infrastructure based on commercial laws and their supplementary services. The aforementioned public train operator will perform its freight and passenger transportation with its own personnel and trains by competing on an equal footing.

On condition of getting autho­-rization from Ministry of Transportation, Maritime Affairs and Communications, other public corporate entities or incorporated companies which have a Turkish Trade Register number, have the right to be a railway infrastructure operator (with the exception of regulating and managing duties)  and railway train operator.

TCDD shall treat fairly and equally with all the public and private train operators when doing its duty.

Currently, freight and passenger transportation on railways are made by TCDD. In the current situation also the wagons belonging to the private sector have been transported by TCDD personnel and locomotives. With this law, the market of freight and passenger transportation on railway will be liberalized. Consequently, TCDD Transport JSC. and other railway train operating companies to be established will have the opportunity of carrying out freight and passenger transportation by their own personnel and trains on railway lines.



Progress Has Been Made  



– The first high-speed train for TCDD Company was bought from CAF Company in the beginning of 2000. Tell us, please, about high-speed rail in Turkey today What trains do you have now?



– 12 HT650000 type High Speed Trains have been procured from Spanish CAF and these have been used on Ankara-Konya, Ankara-Eskişehir and Konya-Eskişehir lines.

In addition to this, within the scope of the agreement signed with SIEMENS AG in 2013; 1 train, which is at the stage of painting, will put into service later this year. On the other hand, in total 106 High Speed Trains will be procured and the tendering  process is on-going  in parallel with the expansion of the core High Speed and High Speed network.

High Speed Train Operation on Ankara-Konya, Ankara-Eskişehir and Konya-Eskişehir lines has begun. With the completion of the test drive of the Eskişehir – Istanbul High Speed Line, High Speed Train Operation between Ankara – Istanbul will be started.

Upon the inauguration of this line, High Speed Trains will be operated also between Konya-İstanbul.

As it has been mentioned before, construction works are on-going on Bursa, İzmir, Sivas, Erzincan Lines.



– Last year the “Marmaray” tunnel was opened. This underwater railway tunnel under the Bosporus Strait was built to connect the European and Asian parts of Istanbul. What are the results? 



– As is already known, the planning studies of Marmaray Project started in 1860 and the Marmaray idea goes back more than a century. The project was implemented in İstanbul which is the cradle of many civilizations but it is a world project from the point of its function. 

As of today, Marmaray has performed a service on 14 km of line between Ayrılık Çeşmesi – Üsküdar – Kazlı Çeşme and it is possible to travel from Asia to Europe in only 4 minutes. In comparison with the transportation modes, it is apparent that Marmaray is not being affected by bad weather conditions. The Transportation of Istanbul took a deep breath with the help of Marmaray on February 19, 2014 that day there was a scotch mist and 171 thousands of passengers were transported through Marmaray. A new record has been broken by 175 thousands of passengers on March 23, 2014.

Up to the present, 18 million passengers have been transported through Marmaray.

Within the scope of the project, by the realization of the other intercity rail systems which will be operated integrated with the YHT line and upgrading of the Kazlıçeşme – Halkalı  and Ayrılık Çeşmesi – Gebze lines.the share of rail systems in the Istanbul transportation network will increase to 28%. It has also prevented the emission of 425 tons of toxic gas into the air each year.



– Could you please talk about your National Train Project?



– With the construction of modern railway lines in our country, the “National Train Project” the design and technology of which belongs to our country was started in order to produce a new generation railway vehicles. 

Within the scope of the project, National High Speed Trains, Diesel Trains (DMU), Electrified Trains (EMU) and Freight Wagons will be developed. 

Our affiliated companies TÜLOMSAŞ (Turkish Locomotive and Engine Industry Inc.), TÜVASAŞ (Turkish Coach Industry Inc) and TÜDEMSAŞ (Turkish Railway Machines Industry Inc.) are the project coordinators with all their potential and capability under the coordination of our Directorate General. 

İstanbul Technical University (İTÜ) as the project partner and TÜBİTAK, ASELSAN, other universities and also other state and private organizations are embraced as stakeholders.

It's target is to produce the prototypes with a share of % 51 national productions and after these works; it's aim is to increase the nationalized share to %85 by the year 2023. 

For National High Speed Train and for The New Generation EMU-DMUs the conceptual design and the industrial design works are completed, the works are going on with the chosen concept. For the New Generation National Freight Wagon, the conceptual design is completed and engineering design works for the Platform Type Wagon are ongoing.



– Besides the innovations, it’s a very important and popular theme at the different transport world events  – the development of the railway electrification system. What can you say about the Turkish railway’s experience?



– A good number of rail systems around the world have started to transform their current lines into the electrical lines for 20-30 years. Electrified systems are more economical than the other systems from the point of fuel. Electrical systems have a high traction power and a capability of hauling high tonnage freight. It is expected that this trend will continue in the forthcoming years because it is more advantageous and environmentally friendly than other systems from the point of noise and environmental pollution.

The first electrical train operation was made between Sirkeci – Halkalı areas in 1955 as suburban services. Electrical operation has been made on 26% of the total track of TCDD in 2012 and with the new high speed lines and transformation of the current lines into electrical lines it is expected that this rate will increase.

Recently, considerable progress has been made in our country's railway sector. There have been significant investments in updating and transforming the conventional lines to electrical lines and constructing new railway lines. As in other systems, it has been also adopted the latest technological developments in electrification systems. 



– Are you going to cooperate with Russian Railways on some matters?



– Turkey cooperates with the countries which are most highly developed in the railway sector and also with the countries of the region. One of these countries is Russia. Combined transportation was started with the Turkey-Russia Train Ferry Line built between Samsun Port of Turkey and Kavkaz Port of Russia. 87.627 tons of freight was carried with 85 journeys up to today. 

The President of Russian Railways, Mr Vladimir Yakunin has held the position of Chairman of the International Union of Railways (UIC) since 2013. As it is known, UIC is the most important international organization in the field of railways. Since 2007 I have been the Chairman of Regional Assembly of Middle East (RAME) and a member of the UIC Executive Board. Thus, I am in close collaboration with Mr Yakunin. I believe that this collaboration and friendly relations will increasingly continue in the future.

By Kirill Kovalenko


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One of the most noticeable projects of the last few years is the Marmay tunnel under the Bosphorus. 

But the Turkish railway system wasn’t always so innovative. When Süleyman Karaman, current President and Director General of TCDD, took up his post, the sector was deep in crisis. In his interview Mr Karaman talks about his experience and further ambitious infrastructure projects.
    [~PREVIEW_TEXT] => 
One of the most noticeable projects of the last few years is the Marmay tunnel under the Bosphorus. 

But the Turkish railway system wasn’t always so innovative. When Süleyman Karaman, current President and Director General of TCDD, took up his post, the sector was deep in crisis. In his interview Mr Karaman talks about his experience and further ambitious infrastructure projects.
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Mobility Chains Are Trendy



– Mr Kern, what was the most difficult period of the development of the Austrian Federal Railways? 



– The first years as OEBB CEO, 2010 und 2011, were difficult years. We had to battle an erosion of equity; our rail cargo division was a big loss maker in our 2010 account balance. Additionally, the effects of the economic crisis had their impact for a long time. We are the carrier of the basic materials industry; every cyclical fluctuation affects us massively. But we tackled this restructuring task and set a clear target:, becoming profitable again. Hard work has changed the picture fundamentally: our cargo division today is one of the few profitable cargo companies in Europe.



– Could you please briefly tell us about the major projects of last year? 



– Austria is currently carrying out a rail infrastructure construction programme of historical proportions, of which the largest projects are being built over decades. This also includes a massive enlargement programme of the Austrian cargo terminals. But of course, we have a number of special milestone projects which require our full attention: in November 2014, the new main station in Vienna will become fully operational – a new hub for rail traffic in Central and Eastern Europe. A broad gauge line going all the way from Russia to Austria, gives us a fascinating perspective for traffic between East and West. The business year 2013 was very successful for ÖBB. We have increased our profit by a double digit basis, we have more satisfied customers than ever and our punctuality is the second best in Europe. Such projects go beyond the perspective of a business year. 



– What can you say about the Austrian Federal Railway’s Modernisation program?



– A study commissioned by the Federation of Austrian Industries has recently underpinned the important role of railways as an innovation driver. Innovation is prerequisite for further shifts from road to rail, in both passenger and freight traffic. 

We distinguish three roles of our company in relation to R&D&I: ÖBB as buyer of innovative solutions, as a partner of R&D&I projects, and as a developer or as lead partner for innovative solutions. 

Austrian Federal Railways are a technology company and we commit to our responsibility as an integrated railway company and therefore to a system view, i.e. a holistic approach to the rail industry to avoid inefficiencies. It is our task to take advantage of innovations in order to bring the railway closer to our customers, guaranteeing safety, cost-efficiency and sustainability.



– So what are the new technological trends of the Austrian Federal Railways Company?



– Mobility chains are one important trend in the field of passenger traffic. This means to provide a door-to-door service and information system to our customers. Let me cite two projects in this context: eMORAIL and SMILE.  

eMORAIL is currently at a pilot stage, combining a car-sharing concept for commuters for the first and last mile and the e-car concept. This means that test users in rural areas are given a mobility package where they can use an electric car from their home to the railway station. The main part of their journey is done by rail and public transport means. During their absence this e-car is used by other public (civil) services and when the test-user comes home this e-car is available again at the station at the time of his arrival. Reservation is done by smart-phones and real-time information is available, also in case of delays, on smart-phones. We believe that this will be the future of travelling.

Within the SMILE project we are developing a prototype for an integrated mobility platform, covering all transport modes, comprising information, reservation and payment. All aspects of mobility are covered, encompassing software development, and engineering, usability, service and system design, environmental friendliness, and sustainability.

Another trend to mention is the automation of traffic management. This is not only a contribution to productivity but also to safety and punctuality, thus to quality of rail services.



– One more important theme is the global outlook for rail freight. What can you say about this from the company’s experiences?



The outlook for rail freight traffic is interlinked with the infrastructural conditions, with other modes of transport and with the sectors that we serve as carriers. Our focus is Europe as a part of the global economy. A new perspective for rail freight in Europe needs an upgrade of the Upper Adriatic Sea ports. 

It is an anachronism that working capital-intensive goods from Asia arrive in the North Sea ports, from where it takes days to transport them to South and South-Eastern Europe, although the direct path would be much shorter. We are the carrier of the primary industry, therefore our perspective depends on the question whether Europe manages to remain a major location for the basic materials industry. Europe as an industrial location needs to be maintained, this needs to be a focus of European policymaking. 



Taking Care of Young Talent



– Is reform of railways taking place now in Austria? What in your opinion is the best way to organize the railway sector? 



– We see an overall interesting and positive development as concerns recent European regulatory decisions. The European Parliament, in its first reading on the so-called 4th Railway Package, decided not to interfere too much with the organisational structure of railway undertakings, and to preserve successful company structures. This is a correct, market-oriented decision. I believe that the model of an integrated company is one of the most successful models. It works for OEBB, and it is also the model of many other successful rail companies. The separation reduces synergy effects, makes companies more complex and costly.



– Do you think that it is important to develop competition on railways (as EU does), or it is better to have one strong and reliable player on market? 



– This question should not be answered from a regulatory perspective, but from the customer perspective. Without a strong market player, no timetable is possible in passenger rail traffic. In Austria, competition in long distance passenger rail traffic has to some extent led to an improved service for the customers and to an overall growth of the rail market. The situation is more complex in the rail freight business: full liberalisation comes with competition around the attractive transit routes, where we see many market entrants. These are no private companies but almost exclusively subsidiaries of other state-owned railway companies. The much less attractive Hinterland and Single Wagon Load traffic which is necessary for our regionally structured industry rests with OEBB. Conclusion: there are many arguments for a strong national player in rail freight if the Single Wagon Load traffic is to be maintained for our industrial business customers. 



– Two years ago The Austrian Federal Railways Company and Russian Railway’s Company signed an official memorandum about joint actions on the development of personnel potential. Can you tell us about results of this partnership?



– Yes indeed, as President Yakunin always stresses, young talents are the future of our companies and we have to take care of them. The aim of this cooperation is to have an exchange twice a year.

In 2013 the output has been an exchange on two levels. On the one hand we had a “Young Talent Exchange” focusing on the intercultural competence in a globalized world. First young Russian experts came to Austria and then our young experts went to Moscow. In both cases a mix of theoretical presentations and visits to installations were provided. 

On the other hand, the result was an exchange at Human Resource management level. Last year, top management training was addressed and first ideas came up for potential fields of cooperation.



Not Years, but Decades



– The Koralmbahn is the first entirely new railway line in the Second Austrian Republic and has been under construction since 2006. It is being built for intermodal freight transport, it will also be used by passenger trains travelling at up to 250 km/h. The time taken to travel from Klagenfurt to Graz will be reduced from three hours to one hour. The Koralmbahn is expected to be operational by 2020. What can you say about the current status of this project?



– You have already specified the key data relevant for the market. As regards the project’s status: the tunnel construction is in its final stage, the works on the last section have started, 70 per cent of the tracks are already under construction, and a completed section is already very successfully in use for the regional traffic into the direction of Graz, with very good passenger growth rates. 

The Koralmbahn is the heart of our new south axis, which is also a part of the TEN-project Baltic Adriatic Axis. Via this route, we will offer a fast and strong connection to the ports of the Upper Adriatic Sea. 



– What other projects are you going to start this or next year? 



– You do not plan in years, but decades ahead in the railway business. Sometimes even centennials, and this is a good thing. Long-term perspectives are good for the business location and the company.  This year’s major focus will go be the centennial project of the new Vienna main station including a new OEBB headquarters. Within the company, we will reach the targets of our internal “fitness programme”: earning our own costs of capital in order to be able to invest based on our own financial strength. 

By Kirill Kovalenko
    [~DETAIL_TEXT] => 
Mobility Chains Are Trendy



– Mr Kern, what was the most difficult period of the development of the Austrian Federal Railways? 



– The first years as OEBB CEO, 2010 und 2011, were difficult years. We had to battle an erosion of equity; our rail cargo division was a big loss maker in our 2010 account balance. Additionally, the effects of the economic crisis had their impact for a long time. We are the carrier of the basic materials industry; every cyclical fluctuation affects us massively. But we tackled this restructuring task and set a clear target:, becoming profitable again. Hard work has changed the picture fundamentally: our cargo division today is one of the few profitable cargo companies in Europe.



– Could you please briefly tell us about the major projects of last year? 



– Austria is currently carrying out a rail infrastructure construction programme of historical proportions, of which the largest projects are being built over decades. This also includes a massive enlargement programme of the Austrian cargo terminals. But of course, we have a number of special milestone projects which require our full attention: in November 2014, the new main station in Vienna will become fully operational – a new hub for rail traffic in Central and Eastern Europe. A broad gauge line going all the way from Russia to Austria, gives us a fascinating perspective for traffic between East and West. The business year 2013 was very successful for ÖBB. We have increased our profit by a double digit basis, we have more satisfied customers than ever and our punctuality is the second best in Europe. Such projects go beyond the perspective of a business year. 



– What can you say about the Austrian Federal Railway’s Modernisation program?



– A study commissioned by the Federation of Austrian Industries has recently underpinned the important role of railways as an innovation driver. Innovation is prerequisite for further shifts from road to rail, in both passenger and freight traffic. 

We distinguish three roles of our company in relation to R&D&I: ÖBB as buyer of innovative solutions, as a partner of R&D&I projects, and as a developer or as lead partner for innovative solutions. 

Austrian Federal Railways are a technology company and we commit to our responsibility as an integrated railway company and therefore to a system view, i.e. a holistic approach to the rail industry to avoid inefficiencies. It is our task to take advantage of innovations in order to bring the railway closer to our customers, guaranteeing safety, cost-efficiency and sustainability.



– So what are the new technological trends of the Austrian Federal Railways Company?



– Mobility chains are one important trend in the field of passenger traffic. This means to provide a door-to-door service and information system to our customers. Let me cite two projects in this context: eMORAIL and SMILE.  

eMORAIL is currently at a pilot stage, combining a car-sharing concept for commuters for the first and last mile and the e-car concept. This means that test users in rural areas are given a mobility package where they can use an electric car from their home to the railway station. The main part of their journey is done by rail and public transport means. During their absence this e-car is used by other public (civil) services and when the test-user comes home this e-car is available again at the station at the time of his arrival. Reservation is done by smart-phones and real-time information is available, also in case of delays, on smart-phones. We believe that this will be the future of travelling.

Within the SMILE project we are developing a prototype for an integrated mobility platform, covering all transport modes, comprising information, reservation and payment. All aspects of mobility are covered, encompassing software development, and engineering, usability, service and system design, environmental friendliness, and sustainability.

Another trend to mention is the automation of traffic management. This is not only a contribution to productivity but also to safety and punctuality, thus to quality of rail services.



– One more important theme is the global outlook for rail freight. What can you say about this from the company’s experiences?



The outlook for rail freight traffic is interlinked with the infrastructural conditions, with other modes of transport and with the sectors that we serve as carriers. Our focus is Europe as a part of the global economy. A new perspective for rail freight in Europe needs an upgrade of the Upper Adriatic Sea ports. 

It is an anachronism that working capital-intensive goods from Asia arrive in the North Sea ports, from where it takes days to transport them to South and South-Eastern Europe, although the direct path would be much shorter. We are the carrier of the primary industry, therefore our perspective depends on the question whether Europe manages to remain a major location for the basic materials industry. Europe as an industrial location needs to be maintained, this needs to be a focus of European policymaking. 



Taking Care of Young Talent



– Is reform of railways taking place now in Austria? What in your opinion is the best way to organize the railway sector? 



– We see an overall interesting and positive development as concerns recent European regulatory decisions. The European Parliament, in its first reading on the so-called 4th Railway Package, decided not to interfere too much with the organisational structure of railway undertakings, and to preserve successful company structures. This is a correct, market-oriented decision. I believe that the model of an integrated company is one of the most successful models. It works for OEBB, and it is also the model of many other successful rail companies. The separation reduces synergy effects, makes companies more complex and costly.



– Do you think that it is important to develop competition on railways (as EU does), or it is better to have one strong and reliable player on market? 



– This question should not be answered from a regulatory perspective, but from the customer perspective. Without a strong market player, no timetable is possible in passenger rail traffic. In Austria, competition in long distance passenger rail traffic has to some extent led to an improved service for the customers and to an overall growth of the rail market. The situation is more complex in the rail freight business: full liberalisation comes with competition around the attractive transit routes, where we see many market entrants. These are no private companies but almost exclusively subsidiaries of other state-owned railway companies. The much less attractive Hinterland and Single Wagon Load traffic which is necessary for our regionally structured industry rests with OEBB. Conclusion: there are many arguments for a strong national player in rail freight if the Single Wagon Load traffic is to be maintained for our industrial business customers. 



– Two years ago The Austrian Federal Railways Company and Russian Railway’s Company signed an official memorandum about joint actions on the development of personnel potential. Can you tell us about results of this partnership?



– Yes indeed, as President Yakunin always stresses, young talents are the future of our companies and we have to take care of them. The aim of this cooperation is to have an exchange twice a year.

In 2013 the output has been an exchange on two levels. On the one hand we had a “Young Talent Exchange” focusing on the intercultural competence in a globalized world. First young Russian experts came to Austria and then our young experts went to Moscow. In both cases a mix of theoretical presentations and visits to installations were provided. 

On the other hand, the result was an exchange at Human Resource management level. Last year, top management training was addressed and first ideas came up for potential fields of cooperation.



Not Years, but Decades



– The Koralmbahn is the first entirely new railway line in the Second Austrian Republic and has been under construction since 2006. It is being built for intermodal freight transport, it will also be used by passenger trains travelling at up to 250 km/h. The time taken to travel from Klagenfurt to Graz will be reduced from three hours to one hour. The Koralmbahn is expected to be operational by 2020. What can you say about the current status of this project?



– You have already specified the key data relevant for the market. As regards the project’s status: the tunnel construction is in its final stage, the works on the last section have started, 70 per cent of the tracks are already under construction, and a completed section is already very successfully in use for the regional traffic into the direction of Graz, with very good passenger growth rates. 

The Koralmbahn is the heart of our new south axis, which is also a part of the TEN-project Baltic Adriatic Axis. Via this route, we will offer a fast and strong connection to the ports of the Upper Adriatic Sea. 



– What other projects are you going to start this or next year? 



– You do not plan in years, but decades ahead in the railway business. Sometimes even centennials, and this is a good thing. Long-term perspectives are good for the business location and the company.  This year’s major focus will go be the centennial project of the new Vienna main station including a new OEBB headquarters. Within the company, we will reach the targets of our internal “fitness programme”: earning our own costs of capital in order to be able to invest based on our own financial strength. 

By Kirill Kovalenko
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Mobility Chains Are Trendy



– Mr Kern, what was the most difficult period of the development of the Austrian Federal Railways? 



– The first years as OEBB CEO, 2010 und 2011, were difficult years. We had to battle an erosion of equity; our rail cargo division was a big loss maker in our 2010 account balance. Additionally, the effects of the economic crisis had their impact for a long time. We are the carrier of the basic materials industry; every cyclical fluctuation affects us massively. But we tackled this restructuring task and set a clear target:, becoming profitable again. Hard work has changed the picture fundamentally: our cargo division today is one of the few profitable cargo companies in Europe.



– Could you please briefly tell us about the major projects of last year? 



– Austria is currently carrying out a rail infrastructure construction programme of historical proportions, of which the largest projects are being built over decades. This also includes a massive enlargement programme of the Austrian cargo terminals. But of course, we have a number of special milestone projects which require our full attention: in November 2014, the new main station in Vienna will become fully operational – a new hub for rail traffic in Central and Eastern Europe. A broad gauge line going all the way from Russia to Austria, gives us a fascinating perspective for traffic between East and West. The business year 2013 was very successful for ÖBB. We have increased our profit by a double digit basis, we have more satisfied customers than ever and our punctuality is the second best in Europe. Such projects go beyond the perspective of a business year. 



– What can you say about the Austrian Federal Railway’s Modernisation program?



– A study commissioned by the Federation of Austrian Industries has recently underpinned the important role of railways as an innovation driver. Innovation is prerequisite for further shifts from road to rail, in both passenger and freight traffic. 

We distinguish three roles of our company in relation to R&D&I: ÖBB as buyer of innovative solutions, as a partner of R&D&I projects, and as a developer or as lead partner for innovative solutions. 

Austrian Federal Railways are a technology company and we commit to our responsibility as an integrated railway company and therefore to a system view, i.e. a holistic approach to the rail industry to avoid inefficiencies. It is our task to take advantage of innovations in order to bring the railway closer to our customers, guaranteeing safety, cost-efficiency and sustainability.



– So what are the new technological trends of the Austrian Federal Railways Company?



– Mobility chains are one important trend in the field of passenger traffic. This means to provide a door-to-door service and information system to our customers. Let me cite two projects in this context: eMORAIL and SMILE.  

eMORAIL is currently at a pilot stage, combining a car-sharing concept for commuters for the first and last mile and the e-car concept. This means that test users in rural areas are given a mobility package where they can use an electric car from their home to the railway station. The main part of their journey is done by rail and public transport means. During their absence this e-car is used by other public (civil) services and when the test-user comes home this e-car is available again at the station at the time of his arrival. Reservation is done by smart-phones and real-time information is available, also in case of delays, on smart-phones. We believe that this will be the future of travelling.

Within the SMILE project we are developing a prototype for an integrated mobility platform, covering all transport modes, comprising information, reservation and payment. All aspects of mobility are covered, encompassing software development, and engineering, usability, service and system design, environmental friendliness, and sustainability.

Another trend to mention is the automation of traffic management. This is not only a contribution to productivity but also to safety and punctuality, thus to quality of rail services.



– One more important theme is the global outlook for rail freight. What can you say about this from the company’s experiences?



The outlook for rail freight traffic is interlinked with the infrastructural conditions, with other modes of transport and with the sectors that we serve as carriers. Our focus is Europe as a part of the global economy. A new perspective for rail freight in Europe needs an upgrade of the Upper Adriatic Sea ports. 

It is an anachronism that working capital-intensive goods from Asia arrive in the North Sea ports, from where it takes days to transport them to South and South-Eastern Europe, although the direct path would be much shorter. We are the carrier of the primary industry, therefore our perspective depends on the question whether Europe manages to remain a major location for the basic materials industry. Europe as an industrial location needs to be maintained, this needs to be a focus of European policymaking. 



Taking Care of Young Talent



– Is reform of railways taking place now in Austria? What in your opinion is the best way to organize the railway sector? 



– We see an overall interesting and positive development as concerns recent European regulatory decisions. The European Parliament, in its first reading on the so-called 4th Railway Package, decided not to interfere too much with the organisational structure of railway undertakings, and to preserve successful company structures. This is a correct, market-oriented decision. I believe that the model of an integrated company is one of the most successful models. It works for OEBB, and it is also the model of many other successful rail companies. The separation reduces synergy effects, makes companies more complex and costly.



– Do you think that it is important to develop competition on railways (as EU does), or it is better to have one strong and reliable player on market? 



– This question should not be answered from a regulatory perspective, but from the customer perspective. Without a strong market player, no timetable is possible in passenger rail traffic. In Austria, competition in long distance passenger rail traffic has to some extent led to an improved service for the customers and to an overall growth of the rail market. The situation is more complex in the rail freight business: full liberalisation comes with competition around the attractive transit routes, where we see many market entrants. These are no private companies but almost exclusively subsidiaries of other state-owned railway companies. The much less attractive Hinterland and Single Wagon Load traffic which is necessary for our regionally structured industry rests with OEBB. Conclusion: there are many arguments for a strong national player in rail freight if the Single Wagon Load traffic is to be maintained for our industrial business customers. 



– Two years ago The Austrian Federal Railways Company and Russian Railway’s Company signed an official memorandum about joint actions on the development of personnel potential. Can you tell us about results of this partnership?



– Yes indeed, as President Yakunin always stresses, young talents are the future of our companies and we have to take care of them. The aim of this cooperation is to have an exchange twice a year.

In 2013 the output has been an exchange on two levels. On the one hand we had a “Young Talent Exchange” focusing on the intercultural competence in a globalized world. First young Russian experts came to Austria and then our young experts went to Moscow. In both cases a mix of theoretical presentations and visits to installations were provided. 

On the other hand, the result was an exchange at Human Resource management level. Last year, top management training was addressed and first ideas came up for potential fields of cooperation.



Not Years, but Decades



– The Koralmbahn is the first entirely new railway line in the Second Austrian Republic and has been under construction since 2006. It is being built for intermodal freight transport, it will also be used by passenger trains travelling at up to 250 km/h. The time taken to travel from Klagenfurt to Graz will be reduced from three hours to one hour. The Koralmbahn is expected to be operational by 2020. What can you say about the current status of this project?



– You have already specified the key data relevant for the market. As regards the project’s status: the tunnel construction is in its final stage, the works on the last section have started, 70 per cent of the tracks are already under construction, and a completed section is already very successfully in use for the regional traffic into the direction of Graz, with very good passenger growth rates. 

The Koralmbahn is the heart of our new south axis, which is also a part of the TEN-project Baltic Adriatic Axis. Via this route, we will offer a fast and strong connection to the ports of the Upper Adriatic Sea. 



– What other projects are you going to start this or next year? 



– You do not plan in years, but decades ahead in the railway business. Sometimes even centennials, and this is a good thing. Long-term perspectives are good for the business location and the company.  This year’s major focus will go be the centennial project of the new Vienna main station including a new OEBB headquarters. Within the company, we will reach the targets of our internal “fitness programme”: earning our own costs of capital in order to be able to invest based on our own financial strength. 

By Kirill Kovalenko
    [~DETAIL_TEXT] => 
Mobility Chains Are Trendy



– Mr Kern, what was the most difficult period of the development of the Austrian Federal Railways? 



– The first years as OEBB CEO, 2010 und 2011, were difficult years. We had to battle an erosion of equity; our rail cargo division was a big loss maker in our 2010 account balance. Additionally, the effects of the economic crisis had their impact for a long time. We are the carrier of the basic materials industry; every cyclical fluctuation affects us massively. But we tackled this restructuring task and set a clear target:, becoming profitable again. Hard work has changed the picture fundamentally: our cargo division today is one of the few profitable cargo companies in Europe.



– Could you please briefly tell us about the major projects of last year? 



– Austria is currently carrying out a rail infrastructure construction programme of historical proportions, of which the largest projects are being built over decades. This also includes a massive enlargement programme of the Austrian cargo terminals. But of course, we have a number of special milestone projects which require our full attention: in November 2014, the new main station in Vienna will become fully operational – a new hub for rail traffic in Central and Eastern Europe. A broad gauge line going all the way from Russia to Austria, gives us a fascinating perspective for traffic between East and West. The business year 2013 was very successful for ÖBB. We have increased our profit by a double digit basis, we have more satisfied customers than ever and our punctuality is the second best in Europe. Such projects go beyond the perspective of a business year. 



– What can you say about the Austrian Federal Railway’s Modernisation program?



– A study commissioned by the Federation of Austrian Industries has recently underpinned the important role of railways as an innovation driver. Innovation is prerequisite for further shifts from road to rail, in both passenger and freight traffic. 

We distinguish three roles of our company in relation to R&D&I: ÖBB as buyer of innovative solutions, as a partner of R&D&I projects, and as a developer or as lead partner for innovative solutions. 

Austrian Federal Railways are a technology company and we commit to our responsibility as an integrated railway company and therefore to a system view, i.e. a holistic approach to the rail industry to avoid inefficiencies. It is our task to take advantage of innovations in order to bring the railway closer to our customers, guaranteeing safety, cost-efficiency and sustainability.



– So what are the new technological trends of the Austrian Federal Railways Company?



– Mobility chains are one important trend in the field of passenger traffic. This means to provide a door-to-door service and information system to our customers. Let me cite two projects in this context: eMORAIL and SMILE.  

eMORAIL is currently at a pilot stage, combining a car-sharing concept for commuters for the first and last mile and the e-car concept. This means that test users in rural areas are given a mobility package where they can use an electric car from their home to the railway station. The main part of their journey is done by rail and public transport means. During their absence this e-car is used by other public (civil) services and when the test-user comes home this e-car is available again at the station at the time of his arrival. Reservation is done by smart-phones and real-time information is available, also in case of delays, on smart-phones. We believe that this will be the future of travelling.

Within the SMILE project we are developing a prototype for an integrated mobility platform, covering all transport modes, comprising information, reservation and payment. All aspects of mobility are covered, encompassing software development, and engineering, usability, service and system design, environmental friendliness, and sustainability.

Another trend to mention is the automation of traffic management. This is not only a contribution to productivity but also to safety and punctuality, thus to quality of rail services.



– One more important theme is the global outlook for rail freight. What can you say about this from the company’s experiences?



The outlook for rail freight traffic is interlinked with the infrastructural conditions, with other modes of transport and with the sectors that we serve as carriers. Our focus is Europe as a part of the global economy. A new perspective for rail freight in Europe needs an upgrade of the Upper Adriatic Sea ports. 

It is an anachronism that working capital-intensive goods from Asia arrive in the North Sea ports, from where it takes days to transport them to South and South-Eastern Europe, although the direct path would be much shorter. We are the carrier of the primary industry, therefore our perspective depends on the question whether Europe manages to remain a major location for the basic materials industry. Europe as an industrial location needs to be maintained, this needs to be a focus of European policymaking. 



Taking Care of Young Talent



– Is reform of railways taking place now in Austria? What in your opinion is the best way to organize the railway sector? 



– We see an overall interesting and positive development as concerns recent European regulatory decisions. The European Parliament, in its first reading on the so-called 4th Railway Package, decided not to interfere too much with the organisational structure of railway undertakings, and to preserve successful company structures. This is a correct, market-oriented decision. I believe that the model of an integrated company is one of the most successful models. It works for OEBB, and it is also the model of many other successful rail companies. The separation reduces synergy effects, makes companies more complex and costly.



– Do you think that it is important to develop competition on railways (as EU does), or it is better to have one strong and reliable player on market? 



– This question should not be answered from a regulatory perspective, but from the customer perspective. Without a strong market player, no timetable is possible in passenger rail traffic. In Austria, competition in long distance passenger rail traffic has to some extent led to an improved service for the customers and to an overall growth of the rail market. The situation is more complex in the rail freight business: full liberalisation comes with competition around the attractive transit routes, where we see many market entrants. These are no private companies but almost exclusively subsidiaries of other state-owned railway companies. The much less attractive Hinterland and Single Wagon Load traffic which is necessary for our regionally structured industry rests with OEBB. Conclusion: there are many arguments for a strong national player in rail freight if the Single Wagon Load traffic is to be maintained for our industrial business customers. 



– Two years ago The Austrian Federal Railways Company and Russian Railway’s Company signed an official memorandum about joint actions on the development of personnel potential. Can you tell us about results of this partnership?



– Yes indeed, as President Yakunin always stresses, young talents are the future of our companies and we have to take care of them. The aim of this cooperation is to have an exchange twice a year.

In 2013 the output has been an exchange on two levels. On the one hand we had a “Young Talent Exchange” focusing on the intercultural competence in a globalized world. First young Russian experts came to Austria and then our young experts went to Moscow. In both cases a mix of theoretical presentations and visits to installations were provided. 

On the other hand, the result was an exchange at Human Resource management level. Last year, top management training was addressed and first ideas came up for potential fields of cooperation.



Not Years, but Decades



– The Koralmbahn is the first entirely new railway line in the Second Austrian Republic and has been under construction since 2006. It is being built for intermodal freight transport, it will also be used by passenger trains travelling at up to 250 km/h. The time taken to travel from Klagenfurt to Graz will be reduced from three hours to one hour. The Koralmbahn is expected to be operational by 2020. What can you say about the current status of this project?



– You have already specified the key data relevant for the market. As regards the project’s status: the tunnel construction is in its final stage, the works on the last section have started, 70 per cent of the tracks are already under construction, and a completed section is already very successfully in use for the regional traffic into the direction of Graz, with very good passenger growth rates. 

The Koralmbahn is the heart of our new south axis, which is also a part of the TEN-project Baltic Adriatic Axis. Via this route, we will offer a fast and strong connection to the ports of the Upper Adriatic Sea. 



– What other projects are you going to start this or next year? 



– You do not plan in years, but decades ahead in the railway business. Sometimes even centennials, and this is a good thing. Long-term perspectives are good for the business location and the company.  This year’s major focus will go be the centennial project of the new Vienna main station including a new OEBB headquarters. Within the company, we will reach the targets of our internal “fitness programme”: earning our own costs of capital in order to be able to invest based on our own financial strength. 

By Kirill Kovalenko
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Russia Is “Different”



– Mr Rogan, what experience do you have working with Russia?



– In 2004, I arrived in Russia to start an international air express business, located at Sheremetyevo airports. I spent a long time understanding the processes and the people; specifically trying to understand why it was always quicker to send complex freight consignments overland than by air.

I learned quite early on that whilst many people in the West will quite glibly say that Russia is “different” when it came to the crunch, they would not amend their business processes and continually dealt with Russian freight as if it were an intra EU transaction or an export to, say, the United States. 

In this instance I refer to the black and white nature of dealing with the Russian Federal Customs Service. I am not referring to any entrepreneurial activities by individual customs officers but to the rules of engagement when exporting to Russia. These are the ‘black and white’ topics I had to consider. Quite simply, there is a right way of doing business when exporting goods into the Russian Federation and, conversely, a wrong way. 

Abide by the rules and life can be quite simple. Ignore the rule (which under Russian law, is to break the rules) and life becomes very difficult and expensive. 

I identified a gap in the market for an air express product for complex freight movements, designed for companies who needed to get their products into Russia quickly. I started AJR Logistics LLC, a Russian legal entity, with offices in Moscow and at the airports, and approached automotive distributors, in the first instance. My company performed very well when compared to the mainstream carriers (DHL, FedEx, TNT & UPS) with our 2–3 day ‘delivered to the door’ and we provided our service to some of the very best brands in Russia: Aston Martin, Jaguar Land Rover, Mitsubishi and including Rolf (the biggest Russian distributor of foreign vehicles in the Federation).

The AJR business ran like clockwork and I was fortunate to have engaged a superb team of specialists. So it was fortunate that when I was asked to work full time for Rolf as a Business Development Director, I was able to grab the opportunity with both hands.

Rolf was a totally different company to my own. Rolf was the largest distributor of motor cars in Russia. I think then, one in 3 foreign cars sold in Russia came from a Rolf dealership. It employed thousands of staff, had multiple sites across Russia and operated a sizeable fleet of finished vehicle delivery trucks. 

Most interestingly, in 2008 it was reinventing itself as a third party logistics provider (finished vehicles, port operations and warehousing) with the view of bringing other automotive companies on board as clients. 

Whilst I was there the company opened modern car compounds, finished vehicle port operations in St Petersburg (only the second company to do this) and opened up the Far East route via RZD subsidiaries for finished vehicles.

I have travelled extensively in Russia and worked alongside some extremely clever and competent individuals. I gained real insight into the vagaries of Russian business life across a multitude of supply chain disciplines.        

Over my years in Russia I had been invited to visit various conferences and exhibitions and share my insight on my experiences. I visited and delivered speeches as a guest speaker to both Russian and foreign audiences. I visited China, the EU, Turkey and the UK and met many individuals, all fascinated with and keen to do business in Russia.

It was a natural progression to start writing about my experience and in 2011 I opened a Russian language magazine for a UK publishing business, with a launch at the British Embassy. I was both main contributor and Russian editor and thoroughly enjoyed the experience. 

A year later I started Russia Supply Chain – an online magazine writing about and discussing all aspects of supply chains, which in Russia, is a hot topic. That evolved into selling my experience as a business consultant and I have provided advice and guidance to a cross section of industries including the automotive, aviation, mining, and the pharmaceutical sectors.

Most recently I was invited to write a weekly column for RBC Daily under the headline “The Fifth Column”. This is a look at Russian life through the eyes of an ex–Pat upon which I draw from my wealth of experience.  I am thoroughly enjoying the new challenge!    

       

– What is your opinion about competition within the Russian logistics market today? What is the best strategy for an international player to win a customer here – is it to offer a cheap price or high quality?



– Competition in the Russian market has always been fierce; probably never more so than now. New entrants to the Russian market have to provide good service or, if their pricing is uncompetitive, will not get a look in. It is a given fact that KPI’s are agreed and adhered to. If not, the market will prevail and the business will fail.

Businesses have to be flexible and able to react rapidly to changing market conditions, if they are to remain relevant and survive. This is the biggest difference between operating an LSP in Russia and the EU or USA. Russian government intervention in industry sectors has a huge impact in the short term, meaning long term investment in assets is a risk.

New entrants need to recognise that the Russian market is unique and engage the best individuals with the requisite experience to drive their business forward. They must appreciate that Russia is not a low cost country and that business is not built overnight.

Whilst Russia’s economy