Minister of Infrastructure Andrii Pyvovarsky
announced at a briefing at the Government House, on June 3. The draft law
presented during the event was designed by specialists of the Infrastructure
Ministry and Ukrzaliznytsia, as well as European
experts of the Twinning project. The document had also passed the discussion
with railway union teams and the Federation of transport employers. The bill is
designed to solve a number of problems that have accumulated in the branch over
decades of underinvestment and mismanagement and to become a new page in the
history of railway transport.
"Throughout the independence years, the railroad was deprived of
proper funding. Combined with poor management and constant subsidising for
transportation of privileged categories and corruption at different levels,
this has led to over 80% depreciation of basic industry’s assets. The activity of
Ukrzaliznysia as it exists now proves ineffective.
The new draft law will completely change an approach to the organization of
railway carriage. We plan to provide a competitive market for railway
operators, to increase investment attractiveness of such enterprises and to
improve the quality of transport services for passengers," said Minister
of Infrastructure Andrii Pyvovarsky.
The draft Law envisages creating a new model of state administration in
railway transport in Ukraine. The Ministry of Infrastructure will preserve the
functions of state policy formation and drafting laws. A State Agency of
railway transport is to be set up to ensure implementation of the national
policy in the sector, to monitor equal access to infrastructure, to register
and coordinate the activities of carriers. The state function to supervise over
the safety of traffic shall be exercised by State transport safety authority, while
a separate Commission shall deal with independent investigation of accidents on
Another novelty is a new approach to tariff forming
in railway transport. From now on, the rate will consist of specifically
defined components: infrastructure, rolling stock and traction. The
infrastructure component of the tariff will contain an investment component. The
funds collected for infrastructure will be spend on maintenance, while the
investment component of the tariff will be directed on financing investment
projects to develop infrastructure of the railway. For passengers, this will
mean improving the quality of services and safety of rail transportation.
Ukrzaliznytsya will remain the main public operator of the railway
infrastructure in Ukraine and will continue to manage the entire public infrastructure.
The bill envisages equal access to the infrastructure for all market
participants. The Ministry of Infrastructure believes that this will expand the
opportunities for entrepreneurship in this sector and will contribute to the
formation of modern market relations in railway carriages.
In addition, the bill provides a new approach to the organization of passenger
transportations in social segment, which, in particular, will introduce a
concept of orders and contracts for social transport. The Minister added that
it would provide funds to invest in the renovation of rolling stock and
improving the quality of services.
It is expected that by October this year, the draft law "On railway
transport" will have been submitted to the Parliament and will be approved
by the Verkhovna Rada of Ukraine by the year’s end.