The State Railway Administration (Ukrzaliznytsia) expects to reduce its expenditures from UAH 1.2 to UAH 1.4 billion in the first year after beginning active transformations.
"We expect these indicators to improve: debt sustainability, productivity, reduction of administrative personnel, improvement of the overall costs of the six railroads, and bringing them in line with the common standard of Ukrzaliznytsia. I think that the overall effect should be approximately UAH 1.2-1.4 billion in additional spending cuts in the first year,” Ukrzaliznytsia’s First Deputy General Director Maksym Blank said at a press conference on Thursday, the CFTS reports.
Minister of Infrastructure Maksym Burbak said at the same press conference that about 17,500 employees or approximately 5% of the total number of Ukrzaliznytsia’s employees were expected to be made redundant by the end of 2014. According to him, trade unions have approved this step.
As reported earlier, 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 scheduled to begin operation in the first few months of 2015. The ban on privatization of railway assets will remain in force.
