Ukraine's Railways state-owned company to invest UAH 150 bn in development

Ukraine's Railways state-owned company to invest UAH 150 bn in developmentPJSC Ukrzaliznytsia plans to invest about UAH 130-150 billion in the sector by 2021.

According to the company press service, such plans are stipulated in the strategy of modernization of PJSC Ukrzaliznytsia in 2017-2021, which was approved by its board on April 26.

"The mission of PJSC Ukrzaliznytsia is to ensure sustainable development by providing high-quality and affordable transport services. For this purpose a mechanism for organising events has been developed that is aimed at turning the company into the leader of the transport and logistics market not only in Ukraine but also in Europe," the report says.

The strategy provides for a further reform of the industry by building a vertically integrated structure. In particular, companies will be established in the areas of activity but not according to the regional principle as it was before. The business model of PJSC Ukrzaliznytsia will be built on five business verticals: cargo transportation and logistics, passenger carriage, infrastructure, traction services, production and service. All companies by the market segment will be created during 2017-2018.

In the cargo sector, apart from traditional transportation, separate companies of terminal services, logistics, and intermodal transportation will be created. It is envisaged that by 2021 the share of the market for container transportation by railways will increase from 29% to 45%. The concept of development provides for Ukrzaliznytsia's direct entering the transport services market of the European Union, the development of international transport corridors.
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