It takes around two years to conduct first stage of Ukrzaliznytsia's reform, says Ukrzaliznytsia head

The reformation of the Ukrainian railway sector will be realized in several stages, and it will take around two years to conduct the first stage, acting Head of Ukrzaliznytsia Maksym Blank has said.

He said at a meeting of the working group for transport and logistics of the American Chamber of Commerce in Ukraine, the core of the first step of the reform is to unite all production and legal structures into one joint-stock company and stop operating under the principle of six regional railways.

"The next steps will be discussed additionally: the locomotive segment would be monopolized or not, market players would have access to it or not, what the form of attracting private capital is required and what is to be considered infrastructure facilities – tracks, passenger stations, etc," he said.

He forecasts that the cost of its services will increase, as another form of tariff formation should be used.

"The duplicating functions should be removed… we need the consequent reduction in subsidizing of passenger transportation," he said.

The planned increase by 30% in tariffs for cargo shipments by rail will not justify the current cost of Ukrzaliznytsia.