In 2019, the then-head of the Ukrainian Railways joint-stock company (Ukrzaliznytsia) stated that the company could build a European standard-gauge railway line from the Ukrainian-Polish border to the Sknyliv station on the outskirts of Lviv within a year. In 2020, the Ukrainian Cabinet of Ministers presented an Investment Atlas, which included the construction of a 1435-mm-gauge railway from the border station of Mostyska to Sknyliv. At the time, projections suggested that the new railway line could carry around 600,000 passengers annually, with train speeds reaching 250 km/h. The plan also envisioned transportation of containerized freight to the European Union by rail.
However, the Russian invasion of Ukraine put these plans on hold, while simultaneously underscoring the strategic importance of developing western rail transport routes.
In early November this year, Ukraine’s Deputy Prime Minister for Reconstruction and Minister of Development of Communities and Territories Oleksii Kuleba announced that Ukraine had received the first grant of EUR 73.5 million from the European Commission for the construction of an 80-kilometer European standard-gauge railway line. The project is scheduled for completion by the end of 2027. The grant is being provided under the European Union's Connecting Europe Facility (CEF) program and will cover 50% of the project’s total cost. Ukraine will finance the remainder through budget allocations, as well as Ukrzaliznytsia’s own and borrowed funds.
The single-track European standard-gauge railway line to Sknyliv will extend from Mostyska II, where a 1435-mm gauge track has already been built from Poland. The broader strategy also calls for constructing freight and passenger terminals with 1435-mm gauge tracks in Sknyliv and extending the European standard-gauge railway line to Lviv’s Main Railway Station. However, grant funding for these subsequent phases has not yet been approved.
On the one hand, the construction of the European standard-gauge railway line is expected to increase passenger and freight traffic, which is a positive development in the context of European integration. On the other hand, paradoxically, it could also have the opposite effect, particularly regarding freight transportation.
The CFTS portal asked market participants and experts to assess the project’s impact on transport volumes. We also reached out to Ukrzaliznytsia and the Ministry of Development of Communities and Territories for their comments on the matter.
How much freight is being transported to Mostyska, and what will change?
For security reasons, the ministry does not disclose specific figures for freight transport volumes on the aforementioned route. However, to illustrate the expected impact of the project, officials note that the current throughput capacity of the railway infrastructure on the State Border – Mostyska-II – Sknyliv line is being utilized at only 50–60%.
"After reconstruction, the 1435 mm European-gauge line and the 1520 mm broad-gauge line will have the capacity to handle at least 1.5 times more trains (both freight and passenger) than are scheduled this year," Deputy Minister of Development of Communities and Territories Oleksii Balesta told the CFTS.
According to Balesta, to minimize disruption to logistics during construction, the plan is to first re-equip the existing 1520-mm-gauge down line with bidirectional semi-automatic block signaling before work begins on the European standard-gauge line. The ministry believes that this will preserve the current throughput capacity of the broad-gauge line during the construction of the European-gauge line.
According to the project concept, a 1.5-fold increase in freight traffic will be achieved by equipping the 1520-mm-gauge line with bidirectional, microprocessor-based automatic block signaling and the 1435-mm European standard-gauge line with bidirectional microprocessor-based semi-automatic block signaling. At the same time, station centralization systems will be upgraded with modern microprocessor-based systems. In other words, the number of tracks will not increase, but the expected positive effect will be achieved through advanced automation and signaling.
A transport hub on the border
Since the European standard-gauge line from Poland connects to the border railway station of Mostyska II, it is only natural that cargo handling capacities have been developing there in recent years. Even before the war, businesses began investing in the construction of terminals there, and the Russian invasion and the subsequent reconfiguration of logistics routes only confirmed the correctness of this trajectory. As freight volumes increased, Ukrzaliznytsia also took steps to expand the station’s throughput capacity. In 2024, two additional sets of railway lifting equipment were installed at the Mostyska II–Medyka railway border crossing, increasing the throughput capacity. In addition, in January 2025, Ukrzaliznytsia opened a modernized border control point for trains at the station, rather than on the railway stretch towards the state border.
"If six freight trains could be inspected there per day previously, now up to 15 can be inspected. This means new opportunities for increasing freight transport volumes and speeding up passenger trains," Ukrzaliznytsia’s Board Chairman Oleksandr Pertsovskyi said at the time.
In other words, Mostyska II currently functions as a powerful transport hub, and the only issue is increasing the capacity of the border crossing.
"Currently, two dry ports operate in Mostyska, handling and processing cargo. The construction of a third dry port by another major market player was discussed in 2025. However, this issue is currently on hold following a preliminary review. Even before heavy passenger traffic emerged in this section, up to 40–45 trains could pass through daily. Today, the figure is about 30 trains," said Viktor Halchynskyi, a board member of the NGO Line102.ua. "The fact that the potential investor in the third port has suspended its operations may indicate that the stretch’s throughput capacity is nearing its peak. We should also remember that five pairs of passenger trains operate to Przemyśl on the broad-gauge line, which also affects the throughput capacity."
"Ukrzaliznytsia has objectively increased the border crossing’s throughput capacity in recent years. This has facilitated an increase in the turnover of trade in strategic goods, such as grain, mineral fertilizers, fuel, and containerized cargo, at Mostyska II, when seaports could not cope," noted Dmytro Linnyk, head of the Operational Logistics Department at MOST Logistics.
"We have our own MOST Logistics terminal at Mostyska II, so we usually use the station's infrastructure and operate the border crossing at full capacity. Currently, we can handle 35 trains per month," he added.
The Mostyska branch of the Rise company, LLC Agrarna Perspektiva, heavily uses the border section of the railway line to Mostyska. "We can say that this line saved our exports in 2022-2023," said the company’s representative Artiom Khudolyi. "Odesa was completely closed, and we had a grain elevator in this section. We used it for exports through Poland - the ports of Gdansk and Gdynia. Now, we use it for other projects. In terms of numbers, we operated about 20–25 trains per month through it in 2022-2023." According to him, the cargo was transported in gondola cars, containers, and hopper cars. Today, shipment volumes have decreased slightly, but the company now provides fuel transshipment services there. It also intends to export corn.
One of the key players at the station is Container Terminal Mostyska. According to the company’s CEO Dmytro Kobzar, the Mostyska II station is currently one of the most developed stations in terms of cargo transfers between Ukraine and the EU on the Ukrainian-Polish border. Container Terminal Mostyska alone receives and dispatches about 60 trains per month on the 1435-mm-gauge line. These are critically important export and import cargoes for Ukraine, including grains, fertilizers, metals, railway rails, and containers carrying various types of goods.
The station has become an alternative corridor for Ukrainian exports and imports during the war, Kobzar said. According to him, the station handles almost 100 trains with various cargoes per month, and the number of these cargoes is only growing. Therefore, maintaining the viability of this corridor is a strategically important issue.
Concerns about the European standard-gauge railway project
Market participants believe that constructing the European standard-gauge railway on the State Border - Mostyska II - Sknyliv stretch as currently proposed could reduce actual throughput capacity. This concern extends beyond the construction period, during which delays and downtime are expected. From the beginning of the discussions, the project has included plans for a third, separate 1435 mm standard-gauge track to complement the two existing 1520 mm broad-gauge tracks. However, during the project’s presentation at public hearings in October 2025, Lviv Railways proposed converting one of the existing 1520 mm-gauge lines into the European standard gauge instead.
"We are promised maintenance windows during track repairs, but we understand that capacity will be lost during the actual reconstruction. This will last not just a few days and will inevitably disrupt both export and import traffic," said Khudolyi.
"Of course, the work associated with installing the European standard-gauge track will affect the throughput of our 1520 mm broad-gauge line because one of the tracks of the double-track line will be removed and rebuilt to the European standard gauge of 1435 mm under the project. Naturally, Ukrzaliznytsia claims today that construction will not affect capacity but only slightly limit it. But as construction progresses — that is, as more tracks are dismantled — fewer trains will be able to operate to and from Mostyska II on the 1520 mm-gauge track," added Halchynskyi, supporting the previous view.
However, as noted earlier, businesses are mainly concerned about the idea of building the European standard-gauge railway line in place of one of the existing broad-gauge lines.
"Construction of the European standard-gauge line on the section to Sknyliv will directly reduce the throughput capacity of the border crossing. If this were about building a new line to Mostyska II without reducing the throughput capacity on the 1520-mm-gauge line, there would be fewer problems. However, it now turns out that the proposed modernization project for these tracks provides for reducing the daily number of freight trains by four. This will limit the operations of all the terminals operating at this station," Linnyk said in comments to the CFTS.
"If the European Union has already agreed to finance this project, why not consider building an additional track without reducing the capacity of the existing infrastructure?" asked Linnyk. "Limiting the capacity of the broad-gauge line between Mostyska II and Lviv could be critical for us. Everyone is aware of the problems on the Lviv line and how difficult railcar traffic has become. If only one 1520-mm-gauge track remains on this line instead of two, the outcome will be even worse. And that is without even mentioning the construction period itself, which will inevitably cause further disruption to export-import traffic."
Dmytro Kobzar, the CEO of Container Terminal Mostyska, considers dismantling one of the two broad-gauge tracks from Lviv to Mostyska II to be an illogical, economically unjustified, and strategically flawed decision.
"We are now being unofficially promised that bidirectional traffic will be arranged and automation installed on the single remaining track. They are saying that everything will work smoothly and efficiently, with no reduction in capacity… But logically, while one train is moving forward, another cannot pass. Even if by some miracle, current traffic volumes are maintained… Today, we are negotiating with the Polish side and fighting to increase the volume of cargo the station can transfer. There is twice as much cargo available as the station can currently handle. At present, it can send a maximum of four trains per day to Poland and receive the same number. Yet, it has been agreed that we should send six trains. However, we have never actually sent six trains, even though the freight exists," Kobzar said.
According to him, the optimal solution would be to build the 1435-mm-gauge track separately while retaining the two existing 1520-mm-gauge tracks. He also believes that it is necessary to invest in the Mostyska II station itself, which is constantly overloaded and unable to process the current cargo volumes.
However, Ukrzaliznytsia insists that the root of the problem at Mostyska II is not infrastructure-related but due to border procedures. In comments to the CFTS, Deputy Director of Ukrzaliznytsia’s Commercial Operations Department Valerii Tkachov stated: "Currently, the throughput capacity on this section is about six freight trains per day on both the 1435-mm and 1520-mm gauge lines. Currently, we use only about 3.5 trains per day on each gauge. Therefore, after reconstruction, we will see if there is any negative impact on throughput capacity. This section is not being fully utilized today. The main issues lie not in rail operations but in border procedures, such as inspections by border guards, customs checks, technical inspections of railcars, etc. There is reserve capacity to increase throughput on this route."
He added, "The opportunity to access European financing instruments and develop our border infrastructure within a European framework may also help us take the next step in implementing automation projects at border crossings, etc."
What is a reasonable alternative?
According to Halchynskyi, the transport corridors between Ukraine and Poland can also be operated at full capacity via alternative routes. This could be achieved by using the inactive but rehabilitated Przemyśl - Nyzhankovychi - Kharkiv - Smilnytsia line for passenger and freight traffic. The line remains unused because of the absence of a border crossing. A border crossing was never established there because the line was previously used for transit operations. This is now the primary obstacle.
Representatives of terminals propose selecting an alternative route for the construction of the European standard-gauge railway line to Lviv via Rava-Ruska.
"There is a section at the Rava-Ruska station where a 1435-mm-gauge line could be built through the border station. This would give us two directions: Mostyska II and a second hub at Rava-Ruska. It would allow us to maintain freight traffic through Mostyska and establish an additional hub for passenger traffic. This way, we would not lose out on either exports or imports, and we would have two points for passenger traffic," said Khudolyi.
Linnyk shares this opinion. "Why not review the project's concept and focus on alternative routes? In particular, we could focus on building a European standard-gauge railway through Rava-Ruska, where railway traffic is much lower than through Mostyska II. This is also about diversification and preserving the existing capacity without limiting the current infrastructure."
"Is it realistic to redirect EU-allocated funds to another section? Ukrzaliznytsia should probably answer this question. However, I would like to note that the distance for laying this track is roughly the same. This is the same European standard-gauge line to Lviv that the European Union is talking about, not a project to another city. Therefore, such reallocation of funds is not only possible but also necessary."
Representatives of Container Terminal Mostyska also expressed support for this position. "I would advise developing passenger traffic through Rava-Ruska and building a new 1435 mm passenger line through this border crossing. It would be the best option, even though we are told that changing anything at this stage is unrealistic," says the head of the enterprise.
However, the Ministry of Development of Communities and Territories explains that this option is not so straightforward. In comments to the CFTS, Deputy Minister of Development of Communities and Territories Oleksii Balesta stated that the Briukhovychi–Rava-Ruska–Hrebenne (Poland) line is single-track and non-electrified. In addition, on the Polish side, the Hrebenne station is located on a low-traffic, non-electrified section with inadequate track development and a complex layout and profile. This station performs no freight operations whatsoever.
"Considering the large number of curves with a radius of less than 300 meters on the Rava-Ruska–Briukhovychi line, which limits train speed to only 60 kilometers per hour, implementing the project as an alternative to the Mostyska–Sknyliv line, which is included in the TEN-T network, is impractical and economically unjustified in the near future," the government official said in his response.
For its part, Ukrzaliznytsia notes that a European standard-gauge railway will be built from Rava-Ruska in the future. "When our infrastructure became connected to the European network, we received a phased plan for further work to extend the European standard-gauge railway across our territory. First, from Mostyska II to Lviv. Then, the European standard-gauge track will be extended from Rava-Ruska, Vadul-Siret, and Chop to Lviv. Lviv will become a hub from which corridors will extend. In other words, this is a major strategic project that will enable Ukraine to integrate into the European transport system," Tkachov said in comments to the CFTS.
In place of an afterword
Integrating Ukraine's railways into the European railway system depends not only on infrastructure development but also on the adoption of the necessary regulatory framework and the conclusion of intergovernmental agreements.
In this regard, Halchynskyi notes that examples of the inability to organize traffic on other sections of the 1435 mm-gauge line in the Lviv region demonstrate that building a European standard-gauge line is easier than operating foreign trains on it.
The solution to this problem, particularly with the Polish side, is linked to the implementation of the intergovernmental agreement on rail links between the two countries.
Under the intergovernmental agreement, Ukraine and Poland guarantee unhindered access for trains exclusively to each other's border stations. This means that Ukrainian trains can run to the passenger station in Przemyśl, a border station on the Polish side, with no additional requirements. However, if the European standard-gauge line is extended to Lviv, Mostyska II will remain the border station on the Ukrainian side. Accordingly, the train must either continue with Ukrainian traction, or the foreign carrier operating it must meet certain certification requirements.
"Usually, carriages are transferred at our border station and then pulled by our locomotive. Thus, the throughput capacity of the 1435 mm-gauge Mostyska II–Sknyliv line will depend primarily on how much traction Ukrzaliznytsia can provide for the European standard gauge. This is because other carriers cannot enter Ukraine until private traction is introduced in the country. The draft law on rail transport will not take effect until at least five years after the end of martial law. Until then, no one will come here. The question is: who are we building the line for?" the expert concluded.
