Why Local and National Rail System Design Tool not sell in Turkey?

turkiyede nic local and national brands can not sell rail vehicle
turkiyede nic local and national brands can not sell rail vehicle

📩 19/03/2020 16:43

In our country, there are currently urban rail system operations in 12 provinces. These provinces are Istanbul, Ankara, Bursa, Izmir, Konya, Kayseri, Eskişehir, Adana, Gaziantep, Antalya, Samsun and Kocaeli. As of now in these businesses 3.677 Number of Metro, LRT, Tram and Suburban vehicles were purchased and contracted. In addition, our other provinces that are planned to use the rail system in the near future; Mersin, Diyarbakır, Erzurum, Erzincan, Urfa, Denizli, Sakarya and Trabzon.

Since 1990, CRRC, Siemens, Hyundai Eurotem, CAF, Mitsubishi, ABB, Alstom, CSR, CNR, Skoda, H.Rotem, Bombardier, Ansolda Breda, KTA etc., including high speed trains to our country. 10 different brands of rail system vehicles were purchased from 14 different countries and approximately 10 billion euro was paid for these vehicles. Different spare parts, stock, labor, breakdown, maintenance, etc. When the costs are calculated, this figure reaches 20 billion Euros.

Since the establishment of the Anatolian Rail Transport Systems Cluster (ARUS) in 2012, with the great efforts of ARUS, the domestic contribution requirement has been imposed on vehicles purchased from abroad and the localization rate has increased from 0% to 70%. Number of vehicles with domestic contribution requirement 2168 It is customary. Of these tools only 183 The design of our units is our national branded tram and LRT vehicles such as Panorama, Istanbul, Talas, İpekböücü and Green City, which are produced by Turkish engineers by providing 50-60% domestic goods. The sales price of our locally contributed and manufactured national brands vehicles is around 300 million Euros. When domestic vehicle and domestic contribution rate is calculated in all purchases made so far, it is seen that the ratio of domestic contribution in total cost does not exceed 10%.

Our Local and National Brands

Durmazlar, 60 Green City brand LRT for Bursa B. Municipality, 18 Silk brand tram, 18 Panorama brand tram for Kocaeli B. Municipality, 8 Panorama brand tram for Samsun B. Municipality, 30 tram to Istanbul B. Municipality, Bozankaya Our company has also produced 31 Talas brand trams, Istanbul transportation and 18 Istanbul tram vehicles for Kayseri B. Municipality, and a total of 183 national brand vehicles serve in our cities in Istanbul, Bursa, Kocaeli, Samsun and Kayseri.

TÜLOMSAŞ and TÜVASAŞ produce domestic and national EMU and DMU locomotives. ASELSAN gives great support to localization efforts. It can produce traction and control systems of all domestic and national rail system vehicles. For the first time, with the cooperation of TÜLOMSAŞ and TÜBİTAK-MAM, HSL 1000 brand national hybrid maneuver locomotive was produced in cooperation with the main line E700 Electric maneuver locomotive, TÜLOMSAŞ, TCDD Tasimacilik AS and ASELSAN. Currently, the first national line electric E5000 locomotive, the first national Diesel Electric DE10000 Locomotive and High Speed ​​Train projects are about to be completed. TÜDEMSAŞ started mass production by producing the first generation national freight wagons.

Our National Firms Export

Bozankaya Our company produced 88 metro vehicles for the Bangkok / Thailand Greenline line and 105 metro bodies for the Bangkok Blueline line. These vehicles now serve in Bangkok. Durmazlar Our company started exporting 24 trams to Poland and recently won the tender for 100 trams in Romania. Bozankaya Our company won 16 Tramways in Timişoara, Romania, 16 trams in Iasi and 100 Trolleybus buses for Bucharest. As you can see, our companies produce tram, LRT, Metro, EMU and DMU locomotives with national facilities and export them to the whole world. Turkish rail system vehicles are now serving in the cities of the world.

Government Policies

As a result of ARUS's great efforts, it has brought at least 7% domestic contribution requirement in rail systems numbered 2017/30233, published in the Official Gazette No. 2017 dated 22 November 51. Prime Ministry circular and was approved by the Presidency No. 15 dated August 2018, 36. “Procedures and Principles Regarding the Implementation of the Industry Cooperation Program” With the regulations, the process of localization and national brand production in public procurement became official.

Published in the official newspaper on 18.07.2019 11th Development Plan 'To produce national brands with 2023% domestic contribution until 80, 2023 Industry and Technology StrategyIn the transportation vehicles sector, which is one of the priority sectors in Turkey, decisions were taken to develop strategic materials in rail systems and to give priority to national and original product production.

If we examine some of the rail system vehicles purchased in the last 10 years within the framework of all these decisions:

  • The tender of 2009 metro vehicles, which were held in Izmir in 32, with no domestic contributions and at a price of 33 million euros. Chinese possession on won.
  • The tender for 2012 subway vehicles, which was held in Ankara in 324, was 51% local contribution and 391 million dollars. Chinese possession on won.
  • Check out the 2012 tram tenders held in Konya in 60 with no local contribution and for 104 million Euros. Skoda company won. Later, 12 more additions were made.
  • The tender for 2015 vehicles held in Istanbul in 300, with a 50% domestic contribution, is 280 million 200 thousand Euros Hyundai Eurotem won.
  • The tender of 2015 metro vehicles, which was held in İzmir in 85, was 71 million 400 thousand euros without any domestic contribution. Chinese possession on won.
  • Check out the 2016 Tramway tender held in Eskişehir in 14 for 26 million 320 thousand Euros without any domestic contribution. Skoda company won.
  • With the condition of domestic contribution between 2018% and 272%, 50 subway tenders held in Istanbul in 70, with a price of 2 billion 448 million TL. Chinese possession on took.
  • Approximately 1 billion Euros of subway work planned to be made in Konya on November 2019, 1.2 Chinese possession to He was given.
  • With the latest urgent reason and the condition of delivery in 7 months, Istanbul Airport 176 subway vehicle work is also called Chinese possession to He was given.

Total in the last 10 years 1315 vehicles was given to foreign companies. Native contribution requirement was introduced to 936 of these, but vehicles are still foreign brand and mostly made in China. Apart from these, our national industrialists have served in Istanbul, Bursa, Kayseri, Kocaeli and Samsun for the last 10 years. 183 national brands our rail system vehicle and 144 our exports and 100 there is a pending export contract. In line with the decisions taken in the 11th Development Plan, we, as ARUS members and national industrialists, want to stop foreign purchases and produce all the rail system needs of our country together with its infrastructure.

So why were foreigners preferred in most of these tenders held in our country so far? Local and national industrialists, they make large investments in Turkey, thousands of jobs they provide and why even though they proved themselves by exporting to all over the world are faced with obstacles in the rail system to get jobs in our country?

The main findings are:

  • Municipalities generally use foreign loans for rail system purchases. Unfortunately, since domestic contributions and national brand vehicle conditions are not required in foreign credit contracts, purchases go directly to foreigners.
  • Urgent purchases are made. Although the rail system vehicle purchases are at least 3-4 years of project work covering design, manufacturing, testing and warranty processes, the tender is put out as the purchase of ready-made goods close to the completion of the infrastructure, since the correct planning is not made.
  • Bureaucracy does not trust domestic production. The foreign brand, which has been tried many times before, prefers the product, although it is more expensive. 15% domestic price advantage in purchases is applied by the administrations in different ways.
  • The financial strength of our domestic companies is not enough for multiple purchases. If purchases are planned and made in accordance with a certain schedule, our domestic companies can plan their investments and financial resources according to this date and realize their production.
  • Since the escalation account (exchange rate increase and inflation) is not made when the tender is made with TL, our domestic companies are not afraid of the increase in the exchange rate and at the same time, they cannot enter the tenders with the risk that they may suffer because they cannot find a funding source to support them.
  • In the specifications, the domestic barriers are pushed out of the tender by introducing barriers preventing domestic producers.
  • While foreign payments are made in advance, insufficient advances and payments are made to our domestic companies.
  • Unlike foreigners, stamp tax and decision stamps are required from our domestic companies in tenders where foreigners do not participate.

Our national industrialists, who cannot do business for all these reasons, either have to sell their factories to foreigners, go out to shrink by removing workers, or have to quit the job by knocking the door.

Suggestions to overcome these obstacles;

  • As in the Defense Industry Directorate, a localization model should be applied.
  • the creation of a national power against foreigners in the Rail Procurement in Turkey “A National Consortium” establishment is important. If a national consortium with strong call-in method is encouraged in multiple purchases, success in national production will be inevitable.
  • When the municipalities find loans from abroad, it goes beyond the control of the public procurement and competition institution. Foreign organizations that lend money also want direct purchases from their own country, not the implementation of the localization requirement. These must be a local requirement. In such purchases, there are 50% to 100% offset agreements applied by each country.
  • Although the rail system vehicle supply is a long term project business, urgent tenders are held according to the normal “goods purchase regulation” and often. Rail system vehicle projects cover a minimum of 3-4 years considering the design, manufacturing, testing and warranty processes. Despite this, purchases are considered as a normal purchase of ready goods as per the current regulation. As fluctuations in all costs during the project make domestic producers difficult, a good planning should be made in purchases and this problem should be arranged in favor of our domestic producers. For localization and development of our national brands, it is imperative to ban emergency purchases and to make good planning in tenders.
  • Infrastructure and vehicle purchase works should be separated.
  • The 15% domestic producer price advantage rate applied in domestic vehicle purchases has been enacted and the implementation of this practice in different ways by the administrations should be prevented.
  • When bidding in TL, exchange rate, inflation difference etc. price escalation needs to be added. Our national producers cannot participate in rail system vehicle projects due to exchange rate risk and unnecessary work completion items added to the tender. For this reason, when the TL rate is requested in the auctions, price escalation should be taken into account and our domestic companies should be invited primarily by call method. Stamp tax and decision stamp payment requested from our domestic companies should be removed.
  • Support for domestic production should be provided by giving sufficient advance to our producers.
  • Domestic production can be provided directly by promoting local production through the provincial bank credit support and the State Material Office channels in the municipalities.
  • All tender specifications should be inspected by the Ministry of Industry and Technology, and the local and national brand ratio in the specification should be increased, and blocking and deliberate items pushing the domestic producer out of the tender should be removed from the specification. Industry Cooperation Program (SIP) should be implemented in all tenders.
  • local content in the assembly workshop founded by foreign companies in Turkey should be checked.
  • If native and can be manufactured in Turkey should be given first priority to purchase domestic products, domestic production should be encouraged, it should be implemented without compromising our national industrial policy for a stable government.

In our country, both our existing enterprises and 8 cities in which rail systems are planned, until 2035, approximately 7.000 suburban metro, LRT, Tram, 2104 High Speed ​​Train, High Speed ​​Train, DMU and EMU locomotive, suburban train and more than 30.000 freight wagons are needed. . ARUS, WHAT DO YOU KNOW WHAT NO SHOULD YOU HAVE? All these rail system vehicle and infrastructure works calculated as 70 billion Euros with its infrastructure? Aiming to overcome all obstacles together with its members, it aims to put an end to imports by producing national brand products with completely local and national facilities, and to increase our exports in rail systems to 2020 billion Euros.

As ARUS, what we do in infrastructure and rail system vehicle production is the guarantee of our actions. After that, we do not want to see imported products in our country, we want to have a say in our country and in the world with our own domestic and national brands.

Ilhami Pektas

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