Recent Posts
- Ukraine recovery should be based on development of territorial communities, innovations, involvement of professional domestic community – results of ESUR forum 29.06.2023
- Ukraine repatriates five more seriously wounded Russian POWs 10.04.2023
- Rada intends to include history of Ukraine, foreign language in final certification for general secondary education 10.04.2023
- Rada terminates protocol on joint anti-terrorist measures in CIS territories for Ukraine 10.04.2023
- 100 Ukrainians, incl defenders of Mariupol, returned according to swap procedure – Yermak 10.04.2023
Efficiency of using its own production facilities by Ukrzaliznytsia is 3 times lower than market one – investigative commission
KYIV. Sept 9 (Interfax-Ukraine) – The efficiency of using production capacities of Ukrzaliznytsia is almost three times lower than that of private business entities.
Such conclusions were made by the Temporary Investigative Commission of the Verkhovna Rada, created to check and assess the state of JSC Ukrzaliznytsia, which are published on the parliament’s website.
"An example is the comparison between Lemtrans LLC, which operates more than 21,000 cars and has only two car depots, and JSC Ukrzaliznytsia, which operates more than 105,000 cars and has about 30 car depots. That is, the efficiency of using production capacities of Ukrzaliznytsia is almost three times lower than that of private business entities. In addition, it should be remembered that within Ukrzaliznytsia there are three car-repair plants functioning in the form of separate subdivisions [branches], the production capacity of each significantly exceeds the total capacity of several depots combined," the comparison is given in the commission’s report.
The commission emphasized that Ukrzaliznytsia contains a significant number of redundant divisions and fixed assets, which, due to incomplete production workload, are gradually degrading and require additional funds for their maintenance, which affects the cost of transportation for the company.
"Today, due to ineffective management of its assets and irrational use of funds, the working fleet of Ukrzaliznytsia is about 45% of its total fleet and only 37% of the total working fleet of cars available in Ukraine, while Ukrzaliznytsia monopoly holds 80% repair capacities, creating constant repair problems for several thousand owners of freight cars," the report says.
According to the commission, the existing management structure of the company does not correspond to the generally accepted practice of centralized management of railway transport, is incompetent and removed from the production process.
"Taking into account imperfection and technological inefficiency of the organization of business processes of Ukrzaliznytsia in comparison with private operators of rolling stock, it seems expedient to immediately separate the operators of Ukrzaliznytsia freight cars into separate legal entities, which will take them out of the influence of a natural monopoly and put in equal competitive conditions with respect to private operators of rolling stock," the report said.
