The World Bank recommends that Ukrzaliznytsia intensify the development of container transportation to successfully adapt to economic changes and the future liberalization of the rail freight market. According to analysts, it is crucial for the company to reform its business processes to maintain its position in the new competitive environment.
This is reported by Business • Media
Changes in Demand Structure and Development Strategy
Experts predict that in the medium term, demand for the transportation of raw materials and traditional cargo by rail may decrease, while the volumes of transporting higher-value goods will increase. Accordingly, Ukrzaliznytsia is advised to focus on developing container logistics, implementing intermodal terminals, and enhancing operational efficiency.
“In the medium term, demand for raw materials and goods that are traditionally transported by rail may decline, while the volumes of higher-value goods will increase. To counter the risks of revenue loss from these changes, Ukrzaliznytsia must focus on improving container logistics, developing intermodal terminals, and enhancing operational efficiency,” experts detailed.
Expectations from New Reforms and Tariff Policy
Experts also emphasize the need to prepare for the implementation of a new law on rail transport aimed at liberalizing the market. Legislative changes will allow for the separation of transportation management and railway infrastructure, which will facilitate the modernization of the company and enhance its competitiveness against road transport.
Previously, Ukrzaliznytsia initiated a tariff increase for container transportation for cargo weighing over 26 tons. However, market participants expressed concerns about the potential consequences of such a decision for the industry.