Ukrzaliznytsia to enhance passenger transportation management with Deutsche Bahn team in 2022.

JSC Ukrzaliznytsia and Deutsche Bahn Engineering & Consulting have entered into an agreement on consulting in the field of passenger transportation, according to a posting on the Facebook page of the Ministry of Infrastructure of Ukraine.

This is about improving the planning and development of passenger rail transport, optimizing purchases and renewing rolling stock.

Deutsche Bahn will help Ukrzaliznytsia to separate passenger from freight traffic and ensure efficient management. Consulting is the first stage of cooperation, which will be implemented by the end of 2021. After its successful implementation at the second stage, Ukrzaliznytsia will engage a team of Deutsche Bahn managers to directly manage passenger traffic in 2022.

"Transfer of Ukrzaliznytsia to the management of passenger transportation by DB Consulting is the first systematic step towards a complete transformation of railway transportation in Ukraine," Minister of Infrastructure of Ukraine Oleksandr Kubrakov said.

According to him, with this project the state begins Big Construction project at Ukrzaliznytsia, which will impact the entire infrastructure, rolling stock fleet and service.

"The agreement signed today is the first stage of cooperation, and we expect that, based on its results, we will move on to the next stage already at the beginning of 2022, when the team of German managers will be delegated for the operational management of passenger traffic in Ukraine," the Ministry of Infrastructure said, citing Member of the Management Board for Infrastructure at Deutsche Bahn AG Ronald Pofalla.

According to acting Board Chairman of JSC Ukrzaliznytsia Oleksandr Kamyshin, DB E&C is to develop a roadmap for the implementation of long-distance and suburban passenger transportation for the next five years and a model for financing passenger transportation.

"In the process of reforming the industry, we must change the long-standing practice of passenger transportation being financed by freight. These are separate areas of our company's business, and they must be accounted for and financed separately. Therefore, we expect our consultant to develop an effective financial model for passenger transportation," Kamyshin said.

In addition, DB E&C experts should determine the traffic volumes and the estimated capital investment needs of Ukrzaliznytsia to renew the rolling stock for use in Public Service Obligations (PSO) model.

The service provider will also provide an assessment of the prospects for the purchase and production of passenger rolling stock – regional electric trains, diesel trains, night train cars – and the possibility of producing such rolling stock within the framework of international cooperation with the participation of a Ukrainian manufacturer.

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

Interfax-Ukraine

News about recent political developments in Ukraine, key Ukrainian economic news and major current events in the CIS and the rest of the world.

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