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The procedure for decommissioning freight cars needs to be improved

02/ 03/ 2021
  Last week, the Ministry of Infrastructure of Ukraine once again published the draft Order for public discussion. This document provides for approval of the Procedure for banning the operation of freight cars. However, the current version of the draft Order does not differ significantly from previous documents published by the Ministry in October, December 2020, and February 2021 to which the EBA Logistics Committee experts have repeatedly submitted their comments. Thus, several important issues remain unresolved in the current draft Order. First, the service life of specialized freight cars is significantly limited, which, according to estimates of EBA member companies, will lead to a significant reduction in their number by 2028, including the decommissioning of more than 34% of pellet trucks. Specialized rolling stock is acutely deficient. In essence, the use of such cars is either non-alternative or limitedly replaceable. Business representatives note that it is already quite difficult to replenish the balance of cars that are decommissioned due to the long payback period and the limited market segment where such cars can be used. Secondly, the draft Procedure establishes that the service life of a freight car is calculated based on the results of control tests for each model or type of freight car. At the same time, neither the proposed version of the draft Order nor the current legislation contains the procedure/mechanisms/ criteria for freight cars control tests, nor do they determine in what form, terms, and by whom the test result is formed, nor do they contain information on free access to control test results.  The business community emphasizes that the draft Order needs to be finalized and no restrictions on the service life limit for specialized wagons (including pellet and coke trucks) need to be introduced. Also, it should not limit the use of wagons with extended service life, the decision on which will be made before the entry into force of the draft Order, upon the expiration of such extension; set restrictions on the extension of service life only for universal gondola cars, grain trucks with a coefficient of 1.5 from the standard service life, and for tanks - a coefficient of  2.5 from the standard service life. The EBA experts are ready to join the professional work on this issue, so we call on the Ministry of Infrastructure to participate in a dialogue!   Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

Last week, the Ministry of Infrastructure of Ukraine once again published the draft Order for public discussion. This document provides for approval of the Procedure for banning the operation of freight cars.

However, the current version of the draft Order does not differ significantly from previous documents published by the Ministry in October, December 2020, and February 2021 to which the EBA Logistics Committee experts have repeatedly submitted their comments. Thus, several important issues remain unresolved in the current draft Order.

First, the service life of specialized freight cars is significantly limited, which, according to estimates of EBA member companies, will lead to a significant reduction in their number by 2028, including the decommissioning of more than 34% of pellet trucks. Specialized rolling stock is acutely deficient. In essence, the use of such cars is either non-alternative or limitedly replaceable. Business representatives note that it is already quite difficult to replenish the balance of cars that are decommissioned due to the long payback period and the limited market segment where such cars can be used.

Secondly, the draft Procedure establishes that the service life of a freight car is calculated based on the results of control tests for each model or type of freight car. At the same time, neither the proposed version of the draft Order nor the current legislation contains the procedure/mechanisms/ criteria for freight cars control tests, nor do they determine in what form, terms, and by whom the test result is formed, nor do they contain information on free access to control test results. 

The business community emphasizes that the draft Order needs to be finalized and no restrictions on the service life limit for specialized wagons (including pellet and coke trucks) need to be introduced. Also, it should not limit the use of wagons with extended service life, the decision on which will be made before the entry into force of the draft Order, upon the expiration of such extension; set restrictions on the extension of service life only for universal gondola cars, grain trucks with a coefficient of 1.5 from the standard service life, and for tanks – a coefficient of  2.5 from the standard service life.

The EBA experts are ready to join the professional work on this issue, so we call on the Ministry of Infrastructure to participate in a dialogue!

 

Be the first to learn about the latest EBA news with our Telegram-channel EBAUkraine.

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