3rd International Conference

“Railways of Ukraine: Developments & Investments”

#ЗалізниціУкраїни #investUArailways #railwayUA

On February 28, 2019

International Conference will be held in Kyiv, Ukraine, is dedicated at prospects for rail market liberalization, establishing a competitive environment and inflow of new players, namely private rolling fleet operators.

PRELIMINARY PROGRAMME

Session 1. From monopoly to competition on the railway

Strategic initiatives for rail reforms: Launch of rail transport market open to private sector, establishment of a national carrier

  • step-by-step instructions from architects of changes: paving the way – what, when and how is going to change (methods of rail industry separation and market infrastructure establishment)
  • preparatory steps to changes on the market – the groundwork of Ukrzaliznytsia and the MIU committee (launch of organizational and financial separation of infrastructure management and traffic, forming a range of services provided by a carrier, centralization of traffic control and dispatching functions, traffic safety, etc.)

Ukraine Now competition globally and investment climate

  • consequences of the opening of the Ukrainian railway market
  • attraction of investments into the reformed industry
  • railways as a driver of Ukraine’s economic development

Ukrzaliznytsia after 2022 – strategy for development in a competitive environment

  • priorities & investments; reforms of freight transport verticals, logistics, production, and maintenance
  • Ukrzaliznytsia enters the EU transport market

Competitive environment given new model of rail transport market

  • a new model of interaction between cargo owners and Ukrzaliznytsia (UZ Cargo as railcar operator and seller of freight & infrastructure services, UZ Forwarding as forwarding agent, UZ Siding as operator on access roads, UZ Terminal as terminals operator)

Session 2. In search of competitiveness

Future of competitiveness: what is going to change after private rolling stock operators enter the market

  • expectations of market participants, threats and prospects for the country’s economy
  • business plan for a new market player: investments, permits, risks, profits
  • redistribution of the most marginal segments of rail transportation
  • “Euro-comers” – potential sources of rolling stock for new players, government certification of locomotives

Price competition, rules of tariff policy

  • tariff deregulation for components – railcar, locomotive, infrastructure
  • investment component to be included into regulated tariffs
  • indexation – tariffs linked to industrial prices
  • convergence of cargo classes, simplification of procedures, elimination of norms that discriminate Ukrzaliznytsia
  • new collection of tariffs and a state regulator

Monopoly right to veto: availability of rail infrastructure and locomotives for shippers

  • low-loaded stations – definition criteria (experience of activity or loading area), infrastructure maintenance damages and compensation mechanism
  • unprofitable stations as a space for testing innovations
  • development strategy for mono-used sites

Full train traffic VS wagon transportation – market mechanism or market restriction, analysis of consequences and prospects

  • efficiency of a carrier that does not limit a shipper
  • market monopolization – tightened activities of private wagon operators and shippers
  • searching for compromises like modular and consecutively-formed cars

Session 3. Sector of wagon management

Impact thenew player UZ Cargo Wagon will have on the carriage market

  • from tariff alignment to integrated pricing system
  • either increased competition on the market or discrimination of market players given Ukrzaliznytsia’s exclusive right to transportation

To distribute cars and to meet the demand – features of operating through the AS Mesplan and Prozoro.Sales

  • stable transportation process – determining the optimal planning horizon, forming a train schedule
  • guarantees for delivery of empty wagons and material liability of the parties for compliance with the terms of arrival

How private business solves the problem of transportation efficiency – railway business profitability, pain points to diagnose

  • opportunities to reduce costs and increase business profitability
  • rolling stock efficiency
  • focus on speed availability of locomoties, car turnover

Centralization of traffic management on the routes with the most intense traffic, namely to the western border and seaports

  • traffic management on large distances
  • ways to improve the efficiency of the operation

Delivery with many Xs: who is to take care of the cargo?

  • delivery time and safety of cargoes
  • legal aspects of conflict resolution, reimbursement and liability of the parties

Safety and integrity of the railway transport system – disassembly and repair costs

  • technical condition of both infrastructure and rolling stock, traffic safety
  • how to get rid of shadow turnover of spare parts
  • integrity of the tolling stock during transportation and loading/discharge operations

The audience chiefly included the operators of railway rolling stock, freight forwarders and cargo owners. The forum was circling around the challenges and trends of future developments in the rail market, such as the reform of state monopoly, the inflow of private rolling stock operators, the importance and methods of deepening and developing the relationship with a customer: carrier – operator – cargo owner, the rolling stock renewal, the affective management of railroad traffic, the challenges in railway logistics, the upgrade and operation of infrastructure. The forum also touched the specific issues, such as certification of railway products, damage and dismantling of rolling stock and many others.

Halyna Skvortsova (the manager of the project)
tel./fax: +38 056 370 18 32 ext. 259
mob.: +38 (097) 963 28 71, + 38 (066) 222 66 48
e-mail: h.skvortsova@promgruz.com

Dmitriy Kozhevnikov
tel./fax: +38 056 370 18 32 ext. 395
mob.: + 38 (067) 255 00 57, + 38 (095) 008 94 55
e-mail: d.kozhevnikov@promgruz.com