The Ukrainian Railways public joint-stock company (Ukrzaliznytsia) plans to create its own forwarding company, Ukrzaliznytsia’s Board Chairman Wojciech Balczun announced at a meeting of the Cabinet of Ministers.

"Creation of UZ Forwarding, our own forwarding company, is on the agenda. Unfortunately, Ukrzaliznytsia has completely ceded its market in this area to intermediaries," said Balczun.

The head of Ukrzaliznytsia did not specify whether the UZ Forwarding company would be created on the basis of one of the existing subsidiaries of Ukrzaliznytsia or created from scratch.

The Transport Logistics Center is the Ukrzaliznytsia subsidiary that currently engages in provision of logistics services. Ukrzaliznytsia plans to create a freight division called UZ Cargo on the basis of the Transport Logistics Center.

"Yesterday, we have decided to spin off the UZ Cargo subsidiary. As a first step, we will create UZ Cargo International, a company that will help to develop our international operations," the head of Ukrzaliznytsia said at the Cabinet of Ministers meeting.

Balczun recently said that two divisions would be created on the basis of its freight subsidiary and that these divisions would focus on operations with European and Asian countries.