Ukraine has a potential to reform its railway system building on Lithuanian experience
In Kyiv, Minister of Transport and Communications Marius Skuodis met with Mikheil Saakashvili, former President of Georgia, who now heads the Executive Committee of Ukraine’s National Reform Council. They discussed the undergoing Ukrainian railway sector reform and Skuodis suggested that Ukraine builds on Lithuania’s successful experience in reforming the company Lithuanian Railways.
“Lithuania supports the EU-integration initiatives of Ukraine and its strive to develop a modern, transparent and efficient railway sector. Ukraine chose the right path and is making considerable effort to achieve this. We are ready to offer our expert assistance and share our experience in reforming one of the largest strategic companies of the country,” the Minister said.
In order to increase its efficiency and transparency, the company Lithuanian Railways was reorganised by splitting freight transport, passenger transport and public railway infrastructure management and usage activities into separate subsidiaries. A commercially successful railway reform in Germany served as an example for Lithuania. The German railway group Deutsche Bahn operates under this model.
According to Mikheil Saakashvili, Ukraine sets upon to ensure the best possible compliance with the European railway sector standards and it must build on the experience of the most advanced European countries.
During the meeting it was noted that at the end of 2020, a freight transportation company LTG Cargo, owned by Lithuanian Railways, established a company in Ukraine, which is to provide rolling stock leasing, modernisation and other freight transportation services. Minister Skuodis states that the new company could cooperate with the Ukrainian railway more closely by developing common activities and investment projects. The Lithuanian Railways companies could also start consultations with regard to establishing a common locomotive service and repair centre in Ukraine.
Additionally, the discussion underlined the untapped potential of the trains Viking and Baltic–Ukraine Shuttle to be exploited for trade and goods exchange between the Black Sea and the Port of Klaipėda.
Last updated: 19-03-2021
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