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Priority Funding for Rail Projects Drives Investments in Turkey, Finds Frost & Sullivan

Restructuring of the Turkish State Railways is a key focus area


News provided by

Frost & Sullivan

Jan 20, 2015, 01:00 ET

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LONDON, Jan. 20, 2015 /PRNewswire/ -- Turkish railways have undergone a complete overhaul due to significant investments over the last five years. In the majority of rail projects currently under way, investment is directed towards the construction of new high-speed rail (HSR) lines, electrification, extensions and upgrading of existing infrastructure. With €15.51 billion allocated for the rail sector as part of the Turkey Vision 2023 plan, the country is expected to have a total conventional rail network length of 25,940 km and a HSR network length of 10,000 km. In addition, the plan commits to improving signalling and achieving electrification of over 4,620 km.

In fact, next-generation business models are reshaping the Turkish rail sector as revealed by the latest analysis from Frost & Sullivan, Strategic Analysis of the Turkish Rail Market.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/EU_PR_CCarella_M9BD-13_08Jan15.

"Tapping one such business model, the Turkish State Railways is being restructured to primarily function as an infrastructure manager, while rail operations are spun off as a private entity," noted Frost & Sullivan Automotive & Transportation Research Analyst Shyam Raman. "The separation of infrastructure and rail operations will increase the overall efficiency of the nation's railway system."

While these efforts are commendable, they are not enough to keep the market on a strong growth trajectory. Market participants are challenged by the lack of alternatives during line closings, which in turn create delays in the planning and implementation of refurbishment projects. Addressing this issue will also eliminate the inconvenience caused to freight operators during line closings. For instance, the market was in agreement that the Samsum-Kalin line closing created concerns among logistics providers using the line section, which connects to Samsun port and serves a significant freight volume.

"As market challenges subside, Turkey will have a completely modernised rail network by 2023," noted Raman. "Even private rail companies will begin to operate on its network through open access policies."

Over time, open access policies will also stimulate the market through the addition of new fleets, foreign investment, and increased international traffic. These policies will also stoke competition among existing market participants and new foreign participants.

Strategic Analysis of the Turkish Rail Market is part of the Transportation & Logistics (http://www.transportation.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Big Data in Rapid Transit, Global Rail Industry 2014, Global Rail Passenger Volumes, and Eastern European Rail Market: A 360-degree Perspective. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Strategic Analysis of the Turkish Rail Market
M9BD-13

Contact:
Chiara Carella
Corporate Communications – Europe
P: +44 (0) 20 7343 8314
M: +44 (0) 753 3017689
E: [email protected]

http://www.frost.com

SOURCE Frost & Sullivan

Related Links

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