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24.08.2021

Ukrainian Railways initiated the management support for its passenger traffic from Deutsche Bahn

JSC Ukrzaliznytsia (Ukrainian Railways) and Deutsche Bahn Engineering & Consulting signed an agreement on consulting in the field of passenger transportation. It aims to improve the planning and development of passenger railway transportations, optimize purchasing, and upgrade rolling stock.

 

The German company will help Ukrzaliznytsia to separate passenger and freight traffic, and ensure effective management. Consulting is the first stage of cooperation, which will be implemented by the end of 2021. In the second stage, Ukrzaliznytsia will invite a team of managers from Deutsche Bahn to manage certain functions in its passenger traffic in 2022.

“The support of Ukrzaliznytsia's management of passenger transportation by DB Engineering & Consulting is the first systematic step towards a complete transformation of railway transportation in Ukraine.

This year, for the first time, the state is funding passenger transportation of Ukrzaliznytsia. With proper funding, and based on the experience of the German railway, we are starting Big construction at Ukrzaliznytsia, which will affect all infrastructure, rolling stock, and services.

We strive for German quality in the Ukrainian railway market," noted Ukrainian Minister of Infrastructure Oleksandr Kubrakov.

“We welcome the start of this project in Ukraine. We are confident that with a support of Deutsche Bahn in the management of rail passenger transport the fastest results possible can be obtained.

The contract signed today is the first phase of the collaboration and we assume that, based on results, we will move to the next phase in early 2022.

The path that Ukrzaliznytsia has now taken, was passed similary by Deutsche Bahn many years ago. We are happy to share our experience and thereby strengthen our cooperation," said Ronald Pofalla, DB Infrastructure Board Member.

According to the acting Chairman of the Board of JSC Ukrzaliznytsia Oleksandr Kamyshyn, DB E&C will develop a roadmap for the implementation of long-distance and suburban passenger traffic for the next five years, as well as a model for financing passenger traffic. "In reforming the industry, we need to change the long-standing practice when passenger transportation was funded at the expense of freight transportation. These are separate areas of business of our company, which must be accounted for and financed separately. Therefore, we expect our consultant to develop an effective financial model for passenger traffic,” added Oleksandr Kamyshin.

In addition, DB E&C experts would determine the volume of traffic and estimate the need of Ukrzaliznytsia for capital investment to upgrade its rolling stock for its public transportation under Public Service Obligation (PSO). The service provider will also assess the prospects for the purchase and production of passenger rolling stock - regional electric trains, diesel trains, night train cars - and the possibility of manufacturing such rolling stock by a Ukrainian manufacturer within the framework of international cooperation.

As previously reported, in August 2021, Ukrzaliznytsia and DB Engineering & Consulting began cooperation to develop a new strategy of energy efficiency for the company.