Business suffers significant losses from ineffective work of Ukrzaliznytsia – expert

KYIV. Aug 30 (Interfax-Ukraine) – Business and the Ukrainian economy as a whole are suffering huge losses from the ineffective work of Ukrzaliznytsia, co-owner and CEO of Kovalska Group (Kyiv) Serhiy Pylypenko has told Interfax-Ukraine.

"The condition of the railway tracks is rapidly deteriorating. Over the past five years, we have seen how the derailing of wagons with our cargo from a shocking emergency has turned into a routine. At the same time, we do not see from Ukrzaliznytsia not only major repairs, but even current repairs of sections where accidents most often occur," he stated.

The expert noted that in practice for business – in the event of an emergency – this means the loss or damage of part of the cargo, blocking the receipt of the cargo for an indefinite period until traffic is restored. But even without incidents, the deteriorating condition of the tracks, which entails a decrease in the speed of movement, an increase in the turnover of the rolling stock, which means additional costs.

Pylypenko highlighted two more problems the customers of freight transportation at Ukrzaliznytsia face. The first, according to the expert, is an acute shortage of movable traction, for full functioning it needs three times more. The second is the systemic shortage of drivers and personnel who ensure the operation of the railway. Under seasonal load, this paralyzes the work of the stations, significantly increasing the delivery time of goods.

"Business and the Ukrainian economy as a whole suffer colossal losses from the inefficiency of Ukrzaliznytsia. A simple increase in tariffs cannot solve this problem, because the reasons lie elsewhere – total corruption, a monopoly status, a lack of political will to radically reform the company with the possibility of private operators’ access to the railway transportation market," he said.

Kovalska Group has been operating in the construction market of Ukraine since 1956. It unites 13 enterprises in the field of raw materials extraction, production of goods and construction. The products are represented by the brands Beton from Kovalska, Avenue, Siltek, etc.