The Verkhovna Rada Committee on Transport and Communications supports the adoption of bills to reform the Ukrainian railways company Ukrzaliznytsia.

As the press service of the state administration of railway transport reported, the main rule of the document is to allow privatization of the rail transportation monopoly, UKRINFORM reports.

"If the investor is willing to hire coaches, overhaul them and carry passengers, for example at night, we will only welcome those intentions and meet them halfway: we will provide rolling stock and develop a route for those trains. It is not ruled out that for businesses the organization of overnight passenger transportations, in the event of a strong demand, will be an attractive idea. The trains may be seasonal, for example, during the winter holidays," according to the head of Ukrzaliznytsia, Volodymyr Kozak.

"Last year, a little more than 8 billion UAH (1 USD -7.99 UAH) was invested in the renewal of fixed assets, when the real need was 24 billion UAH. In 2010 along, the deficit in investment amounted to over 15.5 billion UAH, and annually this deficit only increased," he said.

According to Kozak, "this is just one example of the need for fundamental changes in the management of railway transport, and many more such examples could be given."

Further delay in carrying out the reform will lead to a decay of the rail industry, "which can become a restraining factor for the domestic economy," he said.

The bills may be considered by Parliament in December this year.

The reform of Ukrzaliznytsia must be implemented in three phases. The first phase will begin in 2012, when a unified state joint stock company will be created to assume managerial functions in the management of the sector (the functions of regulation and control will remain with the state).

At the next stage of reform, which will last from 2013 to 2015, vertically integrated production and technology systems of railway transport will be created and structured by activity types.

At the third stage of reform (2016-2019), it is planned to eliminate cross-subsidizing of passenger transportations at the cost of freight carriages, and to form a corporate-dependent economic enterprise in the passenger travel industry, subject to ensuring its break-even activities.

It is also envisaged that the share of private companies engaged in freight transportations will increase in the market.

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