The government is planning large-scale reforms in the transport sector

18 October 2013 14:51  3948467 049227
The government is planning large-scale reforms in the transport sector

Ukraine has one of the highest ratings by the coefficient of transit in Europe. Domestic transport system allows to carry over 1.5 billion tons of cargo annually. However, the existing capacity, according to experts, is used by only 70%, and in public transport - by 50%.

Experts point out that an effective transport policy is necessary for socio-economic development of Ukraine. To this end, the Government identified the main vectors of transport infrastructure development. In particular, further development of the transport sector can bring more than 5% of GDP in Ukraine, the Vice Prime Minister of Ukraine Oleksandr Vilkul said.

The primary task of reforming of the transport cluster in Ukraine in 2014 is the establishment of an independent Commission for Transport Regulation and legal framework, experts say. Among other priorities for the next year, they also point out the need for a joint-stock company based on the Ukrainian Railways and holding of concession bidding for roads.

Statistics confirm that the Ukrainian Railways have long been unable to cope with subsidizing of passenger traffic, so the shift from cross-subsidization to establishment of economically justified tariffs is very important. To do this, in 2014 the Government plans to develop and implement a new law on railways.

Some of the relevant infrastructure projects of the railways in 2014 are plans for high-speed railway transportation development in Ukraine, increased purchases of new locomotives, a joint venture with the Czech company Skoda, and the construction of double-track Beskid tunnel in the Carpathians.

Plans of road infrastructure development provide that in the coming months, 119,000 km of local roads will be transferred to regional authorities, whereas Ukravtodor will retain 51,000 kilometers of national roads.

Source - Information newsletter of the CMU

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