JSC “Ukrainian railways” intends to attract private investors to the development of railway stations and container terminals, – Yevgen Kravtsov
As international experience shows, railway stations are one of the most attractive assets for private investors. The most common tools are concession and joint venture. In particular, this is mentioned in the column of Chairman of the Management Board of JSC “Ukrainian railways” Yevgen Kravtsov for Ekonomichna Pravda.
“We are working on this issue with the World Bank and IFC, and have the ambition to grant first stations to concession in late 2020 – early 2021. This will allow, on the one hand, attracting private investments for the reconstruction of the railway infrastructure, and on the other hand – will help to raise efficiency of asset management,” as noted by Yevgen Kravtsov.
According to Mr. Kravtsov, the company is looking forward to the adoption of the law “On Concession”, which was approved in the first reading by Ukrainian parliament back in April 2018.
Another option for a public-private partnership is the construction of container terminals. JSC “Ukrainian railways” has four such complexes in Odesa, Kyiv, Kharkiv and Dnipro. “There is an urgent need to build a similar terminal in Western Ukraine – in Lviv, Kovel or Chop. This is a significant amount of investment. We are looking for the right approach and investors for this project,” – said Yevgen Kravtsov.
The Chairman of the Management Board also noted that JSC “Ukrainian railways” has long been cooperating with the private capital. Successful examples include the liberalization of the freight market, which has been continuing since 2004. Over the last year, JSC “Ukrainian railways” has purchased or built 3.5 thousand of wagons, while the market participants – 8.5 thousand. This contributed to solving the problem of the freight wagons shortage.