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Exclusive Regulations of State Administration of rail transport of Ukraine and critical state of rolling stock impede development of economy and country

Exclusive Regulations of State Administration of rail transport of Ukraine and critical state of rolling stock impede development of economy and country

Confederation of Employers is anxious about situation round Ukrzaliznycja and regular attempts of tariffs growth on goods transportation.

For the last years service consumers got rid of any hope that any tariffs growth had to be accompanied with work improvement of State Administration’s services and with quality of services.

Combination of incompatible functions by Ukrzaliznycja restrains the development of market relations and competition in the branch and contradicts with executive power administrative reform’s requirements, the main of which consists in non-admission of conflicting functions’ existence within the framework of one structure.

The result of such situation is:

-        Non-conditionality of basic tariff;
-        Inadequacy of inflation stock concerning rail freightage charges;
-        Backing of transportation of low-priced vehicles at the expense of essential pay overstating on other vehicles transportation.

Today Ukrzaliznycja is unable in full scale to perform its main function – execution of rail freightage according to Ukrainian economy’s requirements and ensuring of road safety because of critical ware extent of main tools and, first of all, locomotive and rolling stock, rail sector.

Confederation of Employers of Ukraine states that the main problem of the branch is State Administration’s Exclusive Regulations and only complete branch reform will allow changing negative situation radically.

We think that primary and the most important state task for branch development is search of alternative ways of rolling stock renewal which implication of private investors can really be. From the beginning investors’ actions concerning building of a new private rolling stock were supported by Ukrzaliznycja by creation of acceptable tariff conditions for owners (investors).

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