The liberalization of the railway market in Ukraine, following the example of European Union countries, could be the key to reducing the cost of freight and passenger transportation and improving service quality. Experts are convinced that the EU experience should serve as a benchmark for reforming the industry, rather than the tariff increases planned by the national carrier.
This is reported by Business • Media
EU Experience: Competition Lowers Prices and Enhances Quality
In the European Union, after the opening of the railway transport market to competition, there was a significant reduction in prices and an improvement in service. These conclusions were drawn based on surveys of representatives from the railway sector in various EU countries. According to specialists, competition has become the main factor in curbing the rising costs of transportation and enhancing service standards.
“The liberalization of the railway market in the EU has led to lower prices for freight and passenger transportation, as well as improved service quality. This experience should be adopted by ‘Ukrzaliznytsia’, instead of increasing tariffs on freight transportation.”
Ukraine’s Plans: Between Liberalization and Tariff Increases
The Ukrainian government has announced its intention to liberalize the railway transport market to adapt national legislation to EU standards and open the market to competition. However, ‘Ukrzaliznytsia’ currently maintains plans to raise tariffs on freight transportation in 2026 in two stages – first by 27%, and then by an additional 11%. Representatives of industrial enterprises warn that further tariff increases could lead to a significant reduction in freight volumes, negatively impacting the country’s economy.
Additionally, ‘Ukrzaliznytsia’ aims to localize the production of some high-speed Intercity+ trains in Ukraine, which they plan to procure from South Korea. This is expected to contribute to the development of domestic machine engineering and the creation of new jobs.