Business concerns about temporary restrictions on the Southwestern Railroad

11/ 09/ 2019

Recently, in the European Business Association we started to receive information from the EBA Logistics Committee members about significant downtime of wagons at the regional branch of South-Western Railway of Ukrzaliznytsia.

In addition, companies note that over the past 2 months, situation with industrial freight on the railway has significantly worsened, and yesterday on the website of Ukrzaliznytsia was published information about temporary restrictions on transportation since 10.09.2019.

At the same time, efficient logistics is an integral part of business development, export promotion, export revenue attraction and, in general, economic development.

Anna Derevyanko European Business Association Executive Director
Logistics should not be a bottleneck in business operational processes. As the European Business Association we have repeatedly said this and, unfortunately, the reason to emphasize on this one more time come up again in the context of temporary restrictions on the Southwestern Railway. Some companies are already suffering because of this. At the same time, if the situation won’t be resolved, it may even cause stop of a certain businesses.

Therefore, according to the information of the EBA Logistic Committee members, if the state have no opportunities to ensure the efficient operation of logistics, this possibility have to be given to business in order to continue economic growth in the country.

In this context, the introduction of a pilot project on private traction admission can be an impetus to make rail freight in Ukraine more efficient. On the one hand, this is necessary in order to resolve the issue of the existing shortage of the locomotive fleet in Ukrzaliznytsya, on the other – to identify possible problems in the operation of the locomotives by private owners before the adoption of a new comprehensive Law “On Railway Transport”.

At the same time, Ukraine has a majority in the authorities and existing issues can be coordinated effectively in the cooperation of the President, the Government and Parliament. So, business community highlight on this situation and hopes that it can be resolved in the near future.

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