The Siemens concern’s subsidiary has been operating in Ukraine since 1997, supplying equipment, technologies, and integrated solutions to key sectors of the Ukrainian economy. These include the transport sector, since Siemens manufactures rolling stock for railways and cities. In Ukraine, the company was involved in the implementation of a project for joint production of freight/passenger locomotives with the Dnepropetrovsk electric locomotive plant. Dmitry Chornenky, the head of the Integrated Transport Systems Department at Siemens Ukraine, shares his views on the reform of Ukrzaliznytsia and the prospects for development of transport engineering in Ukraine with the CFTS portal.
In your opinion, how should the reform of the Ukrainian railway industry be implemented?
First, it would be advisable to change the structure Ukrzaliznytsia and convert it from a state administration into a joint-stock company. In Ukrzaliznytsia, we are currently dealing with what is essentially a quasi-military enterprise, from which, moreover, the state can seize as much profits as it sees fit. Well, accordingly, the funds that remain for development are completely insufficient. Creation of an enterprise with a clear structure and clear objectives would significantly ease the railway’s access to credit, since Western financial institutions prefer to work with transparent companies.
After becoming a joint-stock company, the division of Ukrzaliznytsia into six autonomous railways can be abolished. Currently, each of them has its own traction rolling stock and operates it for its own commercial purposes. As a rule, none of these entities allows locomotives to get out of their territories. Therefore, if the current rules are preserved, the same dual-powered locomotives that the State Railway Administration has spoken so much about will not be needed in Ukraine. If we look at international experience, we can see that in Germany, for example, the locomotive passes through the entire country. Of course, locomotive drivers are replaced, but nobody wastes time on trying to unhook one locomotive and connect another. As a result, efficiency is increased and delivery time is reduced.
It is very important to change the approach to traffic management. Today, those who are in charge of this have the processes, the time for formation of trains, and their sizes clearly defined. However, all these are designed for vast territories and large volumes of goods, and, as a result, long and heavy trains. However, if goods were transported in smaller consignments, it would be possible to reduce the time spent on formation of trains and increase the speed of delivery.
However, the cost of transporting one ton of freight may increase in that case
It is definitely necessary to analyze the economic aspect carefully. Perhaps, it will turn out that it is cheaper to transport certain types of freight in smaller consignments but much faster. If nothing is done, Ukraine will not be able to increase the speed of delivery of goods. We must not forget that transportation works for businesses.
What should be done with repair plants?
There are currently numerous repair plants within Ukrzaliznytsia. After transformation of Ukrzaliznytsia into a joint-stock company, it will be possible to develop these repair plants by creating facilities for production of new equipment based on them, including through creation of joint ventures or other forms of cooperation.
What about passenger traffic?
The same can be said of passenger traffic. For example, 10-car trains operate on the Kiev-Kharkov and Kiev-Dnepropetrovsk routes and 24-car trains operate at night. How full are they and is there a need to operate 24-car trains at night? If not, then it is possible to increase speed and use lighter locomotives.
In Ukrzaliznytsia, we are currently dealing with what is essentially a quasi-military enterprise, from which, moreover, the state can seize as much profits as it sees fit
Furthermore, the efficiency of multiple units in Ukrainian realities is questionable. Usually, trains with distributed traction are used in areas with a minimum speed of 200 kilometers per hour. In Ukraine, however, there is a speed limit of 160 kilometers per hour. Such a train is slightly more efficient in terms of energy, but not efficient enough to justify the difference in price. Even more, trains with locomotive traction are more familiar and easier to service for Ukrzaliznytsia. Perhaps it would be more appropriate here to use structures of the RailJet type. This is a locomotive-hauled train, but it is made in a single design. It is a monolithic structure in appearance. The hauling unit is at one end, but there is a control cabin in the last car. That is, the train operates based on the "push-pull" principle. Such a project could be implemented easily based on the same "Capital Express" trains manufactured by the Kryukov Railcar Building Works.
How should the problem of unprofitable passenger transportation be solved?
Essentially, Ukrzaliznytsia earns money from freight transportation and losses money on passenger transportation. This situation is not unique. In most countries, including the United States, France, Germany, and many other countries, passenger transportation is generally loss-making and dependent on government subsidies. Ukrzaliznytsia is unlikely to solve this problem by itself. Participation of the Ministry of Infrastructure and an integrated approach are required. Ideally, passenger routes should be completely separated from freight routes and trunk routes should be built between major regional centers. They have already been identified: Kiev, Kharkov, Odessa, Donetsk, Dnepropetrovsk, and Lvov. What is needed now is a plan for further action and consistent development that would include, among other things, modernization of signaling systems and systems for monitoring the occupancy of track sections. This will increase the speed of trains. All this should be done with a view to further development. We are now seeing the achievements of other countries, but we forget how long and hard they worked to achieve the things they can boast of today.
Are there companies in Ukraine that could become Siemens’ potential partners in production of rolling stock?
There are several good manufacturers in Ukraine. First, I would name the the Kryukov Railcar Building Works. This is a unique enterprise that initially engaged in production of freight cars and managed to develop into a powerful center for manufacturing a wide range of railway equipment. They have managed to master the technology for production of passenger carriages and they are creating comfortable, modern rolling stock. They have also learned how to build subway trains, and that is far from being an easy task. It is now the turn of interregional express trains. For this work, it is necessary to have a lot of energy and ambition. There is also the Zaporozhe electric locomotive repair plant. It operated sufficiently actively and planned to produce dual-system locomotives at its facilities. It also held a dialogue with Siemens on this issue, but it did not happen. They are now very close to starting a joint project with Skoda. We should also not forget about the Lvov locomotive repair plant. This is a large enterprise with great potential, which, unfortunately, is being realized only to a small degree.
In addition, I would note the Dnepropetrovsk electric locomotive plant, which initially engaged in production of locomotives for integrated ore mining and processing works. It later developed the DE1 direct-current electric freight locomotive on its own. It implemented another project together with us – that is the project for the DS3 freight/passenger electric locomotive.
However, difficulties later arose regarding this project. Why?
Introduction of this machine into the market was complicated because of difficult relations between Ukrzaliznytsia and the Dnepropetrovsk electric locomotive plant, although the Ukrainian manufacturer proposed a locomotive based on the most modern solutions.
What if we are talking not only about railway equipment?
Then we should immediately note the Elektrontrans joint venture. This is an enterprise that unites extremely determined people who developed their own tram that meets European standards without support from the state. This is a 30-meter tram with a low floor, climate control, and a control system based on a CAN bus. If they had a little help and managed to secure the first successful purchase, they could provide Ukraine with the most modern trams.
Previously, Siemens also showed interest in production of trams in Ukraine...
Yes, that is true. However, we need to choose the optimum cooperation scheme. For example, finished equipment could be delivered here, i.e. imported. However, this option does not suit Ukraine. Components could also be delivered to a local producer, which would assemble trams here. The most interesting conversation was with Elektrontrans because it already has a finished sample that can be developed.
As an example, I would like to cite an interesting cooperation option that was implemented with the Astra company in Romania. The company bought a license for the Combino Plus tram from us and received all the documentation together with the right to produce and sell it over a certain period on a specific territory. Later, the company amended the documentation to meet its own technological needs and capabilities. A year later, the company already had its own structure and concluded a contract with us for supply of key components – bogies and control systems. They either make or buy everything else themselves.
