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Ukraine – Ukrzaliznytsia Modernization Strategy: Policy Note 3 - Selected Cargo Business Issues

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Date
2019-06-24
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2019-06-24
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The draft law on Railway Transport of Ukraine (the ‘new Railway Law’) is currently awaiting sign-off from other ministries and the approval of the Cabinet of Ministers. The Law, among other aims, is intended to align with commitments contained the EU-Ukraine Association Agreement 2014. The Agreement commits the parties to cooperate and seek to harmonize policy, legislation and regulation across a broad range of areas. In its railway sector, Ukraine undertakes to approximate its legislation to specified EU legislation (the ‘rail acquis’) within stipulated timeframes, generally by 2022. The ‘market opening’ provisions of the new Railway Law will include arrangements allowing properly licensed cargo train operating companies, whether public or private, to provide transport services on Ukraine’s rail network on a fair and equal (competitively neutral) basis. JSC Ukrzaliznytsia has already begun a wide-ranging reform program with its development strategy for 2019-2023 that includes a comprehensive strategy dealing with its vision and values, market analysis, objectives, reorganization into business segments, and actions that are commensurate with best practice observed by the World Bank. The strategy should result in a sustainable and expanding railway to meet the country’s needs. The focus of this policy note is on selected cargo business issues involved in JSC Ukrzaliznytsia (UZ) preparations for competing in the provision of rail cargo transport services.
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World Bank Group. 2019. Ukraine – Ukrzaliznytsia Modernization Strategy: Policy Note 3 - Selected Cargo Business Issues. © World Bank. http://hdl.handle.net/10986/32287 License: CC BY 3.0 IGO.
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  • Publication
    Ukraine - Ukrzaliznytsia Modernization Strategy
    (World Bank, Washington, DC, 2019-06-25) World Bank Group
    This summary report assembles and distills the main finding and recommendations of five separate policy notes that originated in a request from Ukraine’s Ministry of Infrastructure (MoI) and state-owned railway company, JSC Ukrzaliznytsia (UZ) to the World Bank to help address specific topics concerning Ukraine’s railway sector. The topics were: (1) railway market opening for cargo services; (2) loss-making long-distance passenger services; (3) selected Cargo business issues; (4) debt management; and (5) infrastructure asset management and prioritization of investment. Asset management strategy and life-cycle costing in the renewal and reconstruction of UZ’s railway infrastructure network. This summary note is organized with the market opening as the anchor for catalyzing and achieving the modernization of UZ and putting it in a strong position to compete with other railways once the market is opened. And while many of the regulatory and institutional actions will depend on the pending railway law, UZ and MoI can continue and in some cases start preparations to be ready once the law is passed.
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    Ukraine - Ukrzaliznytsia Modernization Strategy
    (World Bank, Washington, DC, 2019-06-24) World Bank Group
    This summary report assembles and distills the main finding and recommendations of five separate policy notes that originated in a request from Ukraine’s Ministry of Infrastructure (MoI) and state-owned railway company, JSC Ukrzaliznytsia (UZ) to the World Bank to help address specific topics concerning Ukraine’s railway sector. The topics were: (1) railway market opening for cargo services; (2) loss-making long-distance passenger services; (3) selected Cargo business issues; (4) debt management; and (5) infrastructure asset management and prioritization of investment. Asset management strategy and life-cycle costing in the renewal and reconstruction of UZ’s railway infrastructure network. This summary note is organized with the market opening as the anchor for catalyzing and achieving the modernization of UZ and putting it in a strong position to compete with other railways once the market is opened. And while many of the regulatory and institutional actions will depend on the pending railway law, UZ and MoI can continue and in some cases start preparations to be ready once the law is passed.
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    Ukraine - Ukrzaliznytsia Modernization Strategy
    (World Bank, Washington, DC, 2019-06-24) World Bank Group
    This summary report assembles and distills the main finding and recommendations of five separate policy notes that originated in a request from Ukraine’s Ministry of Infrastructure (MoI) and state-owned railway company, JSC Ukrzaliznytsia (UZ) to the World Bank to help address specific topics concerning Ukraine’s railway sector. The topics were: (1) railway market opening for cargo services; (2) loss-making long-distance passenger services; (3) selected Cargo business issues; (4) debt management; and (5) infrastructure asset management and prioritization of investment. Asset management strategy and life-cycle costing in the renewal and reconstruction of UZ’s railway infrastructure network. This summary note is organized with the market opening as the anchor for catalyzing and achieving the modernization of UZ and putting it in a strong position to compete with other railways once the market is opened. And while many of the regulatory and institutional actions will depend on the pending railway law, UZ and MoI can continue and in some cases start preparations to be ready once the law is passed.
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    Ukraine – Ukrzaliznytsia Modernization Strategy
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