Government plans major reforms in transport sector

Ukraine has one of the highest transit ratings among European countries. 

Ukrainian transport system allows transportation of over 1.5 billion tons of cargo annually. However, according to experts, the available potential is used by 70% only, and at public transport by 50%.

Experts say that efficient transport policy is needed for socio-economic development of Ukraine. To this end, the government identified the main vectors for transport infrastructure development. In particular, further development of transport sector can ensure more than 5% of Ukrainian GDP, Deputy Prime Minister Oleksandr Vilkul said, Information-analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

Experts say the establishment of independent committee for regulation of transport and legal environment is the first-priority in terms of reforming the Ukrainian transport cluster in 2014. Among other priorities for 2014, they also highlight the need to establish a joint stock company on the basis of Ukrainian Railways and to hold concession tenders for motor roads.

Statistics show that Ukrainian Railways has not been able to manage its passenger traffic for quite a while; therefore, transition from cross-subsidizing to establishment of cost-based tariffs is really urgent. To do this, the government is planning to develop and implement a new Railway Act in 2014.

In 2014, the first-priority infrastructure projects at railway transport still include development of high-speed railway traffic in Ukraine, proactive purchase of new locomotives, establishment of joint venture with Czech Company Skoda, and construction of doubletrack Beskydy tunnel in Carpathian Mountains.

Road infrastructure development plans already include the transfer of 119,000 kilometers of local roads to regional authorities in the near future, while Ukrainian Motor Roads company will still have 51,000 kilometers of state roads.

The government is also planning a serious change in approach to development of transport infrastructure in the country, and attracts more investment and private capital to the industry, which could have a positive effect on state budget revenues in the near future, from transit of goods through Ukrainian territory, note the experts.