The Situation In Rail Cargo Transportation Deteriorates - A Survey Of The American Chamber of Commerce In Ukraine

03 April 2017 11:32

The situation in the field of rail cargo transportation deteriorated in 2016 - such opinion was expressed by 54% of respondents during the poll being provided by the American Chamber of Commerce in Ukraine (ACC). Moreover, 61% of respondents named Ukrzaliznytsia's activities in combating corruption as ineffective. The survey was carried out among the ACC member companies.

The respondents defined such priority directions for Ukrzaliznytsia reforming as combating corruption (84% of respondents), changing the system and the method of tariff-setting (55%), designing a new integrated development strategy of railway industry (42%) and setting up an independent body on regulation of railway transportation tariff (39%).

Evaluating the transparency of the tariff-setting procedure for railway transportation, 90% of respondents noted that it is not transparent. The system needs to be reformed in such directions as creation of a public automated tariff calculation system (68%), division into the infrastructure, investment and railcar components and their target nature (65%), simplification and standardization of the additional fee system (48%), application of the discount system to tariffs in accordance with clear requirements for their recepient (45%), and establishment of unified tariffs for all participants of the transportation process (36%).

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In general, the companies participated in the survey noted the necessity for regular reports of Ukrzaliznytsia board on implementing the capital investment program, since it will positively affect on the transparency of the financial flows of the national railway company.

"Understanding that the situation in the field of rail cargo transportation deteriorated in 2016, the experts of the American Chamber of Commerce in Ukraine developed a number of proposals for its improving. The provision of a transparent mechanism for railcar allocating, accounting of seasonal peak load factors of the railway transport and public discussion of plans for the implementation of capital investments - are one of the main factors contributing to the successful work of Ukrzaliznytsia in the future. The maintenance of the dialogue with business should remain one of the main engagement tools for solution of urgent issues in the railway sector", Andy Hunder, the President of the American Chamber of Commerce in Ukraine, said.