Turkmenistan Sets Up Joint-Stock Company for Railway Services

BUSINESS TURKMENISTAN
Turkmenistan Sets Up Joint-Stock Company for Railway Services
Demirýollary Open Joint-Stock Company will serve railway passengers in Turkmenistan.

Demirýollary Open Joint-Stock Company, responsible for the transportation of passengers and cargo on railways, was created on the basis of the Türkmendemirýollary Agency of the Ministry of Industry and Communications of Turkmenistan.

The founders of the OJST, along with the parent company, are the Transport and logistics center of Turkmenistan OJST and the Altyn Asyr Closed Joint-Stock company. In the process of establishing the company, the property of divisions of the national railway network was evaluated.

The structure of Demirýollary OJST includes locomotive and car depots, railway stations, construction and installation enterprises, specialized enterprises of communication and power supply, Kerven and Turkmenbashi hotels in Avaza National Tourist Zone.

Türkmendemirýollary Agency has retained ownership and control over the railway network, civil facilities, educational institutions and the design and research Institute.

According to Mekan Dadyyev, Deputy General Director of Demirýollary OJSC for Economic and Financial Affairs, the creation of a new company on the basis of a state agency that operates trains and offers transportation services is the best solution in terms of the effectiveness of the country's transport and logistics sector.

Dadyyev emphasized the creation of a market-oriented unit based on the Türkmendemirýollary agency and said that the Joint-Stock Company was given the opportunity to function as a commercial organization.

“Railways are a complex institution with multiple performance indicators, such as costs, transportation costs, level of services and need for investments,” Mekan Dadyev added. "The creation of an Open Joint-Stock Company will attract private capital in the sphere."

President of Turkmenistan signed on January 30 last year the decree on the creation of the Demirýollary OJSC on the basis of the Türkmendemirýollary agency.

Türkmendemirýollary agency, serving 6 million passengers annually, also owns 35% stake in Transport and Logistics Center of Turkmenistan OJSC.