The State Railway Administration (Ukrzaliznytsia) does not plan to completely separate its freight and passenger transportation services during the first phase of its reform, thus preserving cross-subsidization of these services.
"There is no provision for separation at this stage. Ukrzaliznytsia will be transformed into a single company in which freight and passenger transportation, as well as the infrastructural component will be combined," Ukrzaliznytsia’s First Deputy General Director Maksym Blank said at a press conference on Thursday, the CFTS reports.
According to Blank, the original plan was to build a single, efficient structure that would be evaluated later in terms of separation of operations.
He added that all the relevant programs would be developed with international experts and consultants from companies such as Ernst & Young and AT Kearney.
"We have about two years to do our homework on optimization and to develop this program based on the experiences of other countries," said Blank.
As reported, the Cabinet of Ministers approved a resolution on establishment of the Ukrzaliznytsia joint-stock rail transport company on June 25. The joint-stock company is expected to begin operation in the first few months of 2015. The ban on privatization of railway assets will remain in force.
