Ukrainian Railways’ agreement with Deutsche Bahn for the management of passenger traffic

Ukrzaliznytsia JSC and Deutsche Bahn Engineering & Consulting have concluded an agreement on consulting in the field of passenger transportation. It is a question of adjustment of planning and development of passenger railway transportations, optimization of purchases and updating of a rolling stock.

The German company will help Ukrzaliznytsia to separate passenger traffic from freight and ensure effective management. Consulting is the first stage of cooperation, which will be implemented by the end of 2021. With its successful implementation in the second stage, Ukrzaliznytsia will involve a team of managers from Deutsche Bahn for direct management of passenger traffic in 2022.

According to the acting Oleksandr Kamyshin, Chairman of the Board of JSC Ukrzaliznytsia, DB E&C is to develop a roadmap for the implementation of long-distance and suburban passenger traffic for the next five years and a model for financing passenger traffic.

In the process of reforming the industry, we need to change the long-standing practice when passenger transportation is financed by freight. These are separate areas of business of our company, which must be accounted for and financed separately. Therefore, we expect our consultant to develop an effective financial model for passenger traffic.

Oleksandr Kamyshin, Chairman of the Board of JSC Ukrzaliznytsia

The signed contract is the first stage of cooperation, and Deutsche Bahn expect that based on its results we will move to the next stage in early 2022, when a team of German managers will be delegated for operational management of passenger traffic in Ukraine.

Ronald Pofalla
Photo: Holthoff-Pfoertner

We welcome the start of this project in Ukraine. We are confident that the transfer of Deutsche Bahn’s process of managing passenger rail transport will make it possible to obtain the fastest possible results. The path that Ukrzaliznytsia has now taken is about 10 years ago. We are happy to share our own experience and strengthen our cooperation.

Ronald Pofalla, Member of the Board of Directors of DB for Infrastructure

The Minister of Infrastructure of Ukraine Oleksandr Kubrakov noted that the transfer of DB Consulting to the Department of Passenger Transport of Ukrzaliznytsia is the first systematic step towards the complete transformation of railway transport in Ukraine.

“This year, for the first time, the state finances passenger transportation of Ukrzaliznytsia. With proper funding and based on the experience of the German railway, we are starting a major construction project on Ukrzaliznytsia, which will affect all infrastructure, rolling stock and service. We strive for German quality in the Ukrainian railway market”, was noted by the Minister of Infrastructure of Ukraine Oleksandr Kubrakov.

DB E&C experts have to determine the volumes of traffic and the approximate need of Ukrzaliznytsia for capital investments for the renewal of rolling stock for use in the model of socially important transportation (PSO). The service provider will also assess the prospects for the purchase and production of passenger rolling stock – regional electric trains, diesel trains, night train cars – and the possibility of producing such rolling stock in the framework of international cooperation with a Ukrainian manufacturer.

In August 2021, Ukrzaliznytsia and DB Engineering & Consulting began cooperation to develop a new energy efficiency strategy for the company.

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