Ukrzaliznytsia: new managers destroy kickback scheme in cargo shipments

The State Railway Administration of Ukraine (Ukrzaliznytsia) has said that its new managers have destroyed a kickback scheme in cargo shipments.

The press service of Ukrzaliznytsia reported that at present the procedure for canceling agreements continues and any relations between Ukrzaliznytsia and the Ukrainian Transport Logistics Center with so-called middleman firms: Union Com Trans, Universal Cargo Trans, Cargotrans, Rail Cargo Trans, Trans System Logistics and Union Trans Service have been stopped.

First Deputy Director General of Ukrzaliznytsia Maskym Blank said that at present there are no middleman firms. Moreover, Ukrzaliznytsia is preparing new changes that will make cargo shipments transparent and clear.

"We want to make an absolutely transparent system for ordering wagons for all forwarding agents and shippers. Literally one can browse a web site, see what wagons are available and what wagons can be ordered and what wagons are used. This will fully deprive officials of the possibility of using their power," Blank said.

He asked not to confuse shipping firms with middleman firms, which only earn 3% and do nothing.

"There are shipping companies that actually organize cargo shipments. They dispatch cargos in one direction and form loading in other direction and connect routes. This is what no shipper can do," he said.

Blank also asked the public to inform him personally on cases of the replacement of shipping companies with shell companies.

"If, for example, there is evidence that someone lets certain companies replace shipping companies on the railways, then let me know – this is evidence for the law-enforcement agencies," he said.

As reported, a governmental commission that checked statements about failures in cargo transportation by rail and growth in the cost of export, import and transit shipments was created when Mykola Azarov was prime minister. It was planned to receive the explanation of attracting eight intermediaries by railways: Universal Cargo Trans, Rail Cargo Trans, Union Com Trans, Cargotrans, Union Trans Service, Trans System Logistics, Quadro-Center and Trinity-Invest.

The Ukrainian Transport Logistics Center operates almost 57,000 wagons of state wagon companies, which are subordinated to Ukrzaliznytsia, including 42,000 gondola cars, 7,000 boxcars and 8,000 other cars.