Turkey’s State Railway Operator Records Historic $774m Loss in 2025

Turkey’s state-owned railway operator, the Turkish State Railways (TCDD), recorded a net loss of 35.53 billion lira (approximately $774 million) in 2025, marking the largest financial deficit in the institution’s history, local media reported.

According to TCDD’s 2025 financial report cited by BirGün newspaper, the railway operator’s losses have risen sharply over the past four years, increasing from 6.39 billion lira in 2022 to 11.4 billion lira in 2023, 24.5 billion lira in 2024 and 35.53 billion lira in 2025.

The report also showed a significant rise in the company’s debt burden. Commercial debt climbed to 23.76 billion lira ($518 million), while financial debt increased to 5.39 billion lira ($117 million), up from 2.96 billion lira in 2022.

The growing losses have intensified criticism from opposition politicians and railway unions, who attribute the railway operator’s deteriorating financial position to poor management practices and politically influenced appointments.

Lawmakers from the opposition Republican People’s Party (CHP) have cited findings from Turkey’s Court of Accounts alleging that dozens of managerial positions within TCDD were filled without the competitive examinations normally required for promotion. They argued that such appointments undermined merit-based recruitment and contributed to inefficiencies within the organisation.

Critics have also questioned several senior appointments made following the ruling Justice and Development Party’s (AKP) loss of control of Istanbul’s municipal government in the 2019 local elections, alleging that former municipal officials were subsequently placed in key railway positions.

Beyond financial concerns, TCDD has continued to face scrutiny over railway safety. Opposition figures referenced major rail accidents in 2018, including the Çorlu train derailment that claimed 25 lives and a high-speed train collision near Ankara that killed nine people. Investigations into the incidents highlighted maintenance shortcomings, signalling failures and infrastructure deficiencies.

Analysts note that part of TCDD’s financial challenges may stem from its role as a public service provider, as state-owned enterprises often absorb losses when fare pricing, investment decisions and service obligations are guided by government policy rather than commercial profitability.

Established nearly a century ago, TCDD remains a cornerstone of Turkey’s transportation network despite mounting financial and operational challenges.