UZ risks losing up to 25% of its cargo transportation after opening the market for private operators.

The deputy chairman of the parliament’s Transport Committee recalls that, under the association agreement with the EU, our state undertook to reform the transport sector, particularly the railway sector. One element of this reform is the On railway transport draft law, which will adapt current legislation to EU standards.

Following European integration requirements, Ukraine must complete the financial and organizational separation of Ukrainian Railways (UZ) into infrastructure operators, cargo carriers, and passenger carriers. This will attract private operators, increasing the sector’s efficiency and competitiveness.

The draft law guarantees Ukraine’s integration with the EU rail transportation market. However, the draft law also has its shortcomings. UZ’s separation may lead to serious financial difficulties for the company.

“It may lose up to 25% of the freight transportation market within five years after the market’s opening, which will significantly reduce its revenues,” the Deputy Chairman noted.