KYIV, UKRAINE, October 23, 2024 /EINPresswire.com/ -- The appointment of Oleksandr Pertsovskyi as Chairman of the Board of “Ukrzaliznytsia” is an important step for a company that has long been facing structural issues and requires reform. According to Alona Lebedieva, owner of the multi-industry investment group “Aurum Group,” the business community expects the new management to implement real reforms rather than just make promises. These reforms should help the company achieve a new level of efficiency and cooperation.

Fighting Corruption and Increasing Transparency

“There remains a critical need to combat corruption. The ‘Ukrzaliznytsia’ system has long been criticized for its lack of transparency,” says Alona Lebedieva. “The business community expects not just declarations from the new management but the implementation of concrete measures: creating mechanisms for public oversight, open tender procedures, and access to financial information. This will build trust in the company and reduce the corruption risks that negatively affect its financial performance.“

An important component of fighting corruption is establishing clear rules and standards for all procedures related to procurement and resource distribution, as well as increasing accountability for violations.

Reform of Tariff Policy

Lebedieva believes that tariff regulation is a highly important issue. Railway tariffs are often set without considering economic realities or even under the influence of lobbying interests. “A market-based model for setting tariffs is needed, one that considers infrastructure maintenance costs and the profitability of transportation, while remaining acceptable for customers. This will ensure fair pricing for services, which will encourage increased freight traffic on the railway,” she adds.

A market-driven approach to tariffs will help ensure transparency in the distribution of costs and allow the company to respond more quickly to economic changes.

Public-Private Partnership and Private Locomotive Usage

Alona Lebedieva emphasizes the importance of public-private partnerships and a new approach to utilizing rolling stock. The introduction of private locomotives remains a relevant issue even amidst the large-scale war in Ukraine. Some shippers are already concerned about whether “Ukrzaliznytsia” will be able to provide a sufficient number of locomotives in the future. “Private operators could use their locomotives for transportation, which would increase competition and service quality,” says Lebedieva.

Supporting Domestic Producers and a New Approach to Procurement

“Procurement should be transparent and fair,” stresses Lebedieva. “It is necessary to create conditions under which the purchase of spare parts, track equipment, and other materials is conducted through open tenders, prioritizing domestic manufacturers and complying with the localization law.” This will contribute to the development of Ukrainian industry, job creation, and economic strengthening.

A strategic support for domestic producers should be a significant part of procurement policy, creating favorable conditions for competition.

Optimization of Operations and Assets

Regulation and bureaucratic barriers make rail transport less attractive for shippers. “The implementation of electronic document management and digital services for customers are overdue steps that can significantly increase the competitiveness of the railway,” says Lebedieva.

Alona Lebedieva emphasizes that “Ukrzaliznytsia” has significant potential to improve efficiency by divesting non-core assets, which divert resources from its main activities. She believes that effective cost management and the sale or transfer of such assets will allow the company to focus on improving the quality and reliability of transportation.

Lebedieva also points out the opportunities in the railcar repair facilities, which often remain idle due to a lack of orders or unfavorable cooperation conditions. She suggests leasing these facilities, which could attract investment, create new jobs, and strengthen Ukrainian industry. In her view, this would allow “Ukrzaliznytsia” to concentrate on its core functions – providing quality transportation services.

Lebedieva also points out the opportunities in the railcar repair facilities, which often remain idle due to a lack of orders or unfavorable cooperation conditions. She suggests leasing these facilities, which could attract investment, create new jobs, and strengthen Ukrainian industry. In her view, this would allow “Ukrzaliznytsia” to concentrate on its core functions – providing quality transportation services.

The business community hopes that the new head of “Ukrzaliznytsia” will not only manage the large structure but also implement real changes that meet the modern needs of the economy. Reforms in transparency, tariff policy, public-private partnerships, support for national producers, and asset optimization will form the foundation for elevating the company to a new level of development.

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Alona Lebedieva
Aurum Group

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