The Ukrzaliznytsia public joint-stock company began business operations on Tuesday, 1 December. As reported, the Ukrzaliznytsia public joint-stock company was registered by the state on 21 October this year.

"With the start of PJSC Ukrzaliznytsia’s business operations, the sector’s previous management institution – state administration of rail transport – is gradually moving into the past. Employees of structural subdivisions and enterprises of Ukrzaliznytsia are expected to be transferred to the new company," Ukrzaliznytsia said in a press release.

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More than 40 companies that were previously separate entities will also change their status to become subsidiaries of PJSC Ukrzaliznytsia and operate within the structure of the company. At the same time, Ukrainian railways will become regional branches. The regional structure of Ukrainian railways will be changed to a vertically integrated structure. "The new organizational and legal form will allow a switch from creation of railway businesses based on the territorial principle to the national principle. In particular, it will allow creation of several companies specializing in certain types of transportation (freight and passenger) on a functional basis, as well as a company responsible for infrastructure,” the press release states.

Overall, reform of the railway industry will be implemented in several phases. A transitional entity built along functional lines - a single joint-stock company with standalone departments separated based on their areas of operation - will operate during the first phase.

In the second phase, which will be implemented during the period of 2016-2017, branches and affiliates will be completely separated in key areas of operation. Establishment of the final structure of the Ukrzaliznytsia public joint-stock company should take place in 2020.