Performance, Market Share, Assets and Financial Results
Since 1950, the railway system's market share of freight transportation dropped from 70% to ~55% (1960), ~25% (1970), ~10% (1980, 1990) and to less than 10% in 2000. A similar trend was observed in the percentage of passenger transport performed by rail - dropping from a share of greater than 40% in 1950 to ~25% in 1960; less than 10% in 1970; ~5% by 1980; and reaching an all-time low of 2% by 2000. This was partly due to major investment and expansion in the road network.
The TCDD receives subsidies from the government for socially necessary operations, but has registered increasing losses in all its areas of business except for port operations; which have high port tariffs (higher than 36%). By 2000, the cost to the Turkish government had exceeded $500 million per year in addition to a subsidy of over $100 million. In addition to the problems caused by the lack of investment from 1950 onwards, the TCDD organisation has been characterised as suffering from the common problems associated with state-owned enterprises; i.e. emphasis on production rather than customer needs; subject to government reliance and interference; and an inward-looking corporate culture.
As of 2008, the amount of freight transported was the highest ever (18.343 million tonne-kilometers); though actual growth was small over the previous 10 years, and passenger figures had risen slightly overall over the past decade.
As of 2008, the TCDD administers the Ankara Railway Factory, Sivas Concrete Sleeper factory, Afyon Concrete Sleeper factory, Behiçbey rail welding and track machinery repair factory and Çankırı Switch factory. Additionally, the state owned companies TÜLOMSAŞ, TÜDEMSAŞ and TÜVASAŞ are affiliates. The TCDD has a 50% share in the İzmir Banliyö Taşımacılığı Sistemi A.Ş. (İZBAN A.Ş.) which operates the metro in İzmir, and a 15% share in EUROTEM.
Read more about this topic: Turkish State Railways
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