Analysts from the World Bank recommend that Ukrzaliznytsia improve its business processes and undergo reforms to effectively adapt to future economic changes, particularly the opening of the railway freight transportation market.
This is reported by Finway
Strategic Development of Container Logistics
“In the medium term, demand for raw materials and goods that are traditionally transported by rail may decrease, while the volumes of higher-value goods will increase. To counter the risks of revenue loss from these changes, Ukrzaliznytsia must focus on enhancing container logistics, developing intermodal terminals, and improving operational efficiency,” the experts detailed.
Experts emphasize that Ukrzaliznytsia should pay special attention to modernizing container logistics and developing intermodal terminals. These steps will help the company minimize financial risks that may arise from declining demand for raw materials and traditional cargo, as well as ensure revenue growth from transporting high value-added goods.
Legislative Changes and Competitiveness
Analysts remind about the preparation for the adoption of a new law on railway transport. The adoption of this regulatory act will facilitate the liberalization of the railway transportation market and allow for the separation of management of transportation and infrastructure. Such reform is key to enhancing the competitiveness of Ukrzaliznytsia amid increasing pressure from road carriers.
It is worth noting that recently, Ukrzaliznytsia proposed to increase tariffs for transporting containers weighing over 26 tons. However, this initiative has raised concerns among market participants who fear that such changes could negatively impact the industry.