Odessa Train Station in Ukraine

Ukrainian Railways Signs MoU with Deutsche Bahn

Ukrainian Railways signed a Memorandum of Understanding on strategic cooperation with Deutsche Bahn AG and DB Engineering & Consulting GmbH. 

“The partnership with Deutsche Bahn is a positive sign for international investors and significantly improves the investment attractiveness of Ukrainian Railways for international capital and attracts funds for upgrading the infrastructure and rolling stock of the company,” said Alexei Goncharuk, Prime Minister of Ukraine.

The purpose of the cooperation is to develop a concept to provide Ukrzaliznytsia (Ukrainian Railways) with the necessary managerial and technical assistance in the field of freight, passenger transportation, infrastructure, provision of services and maintenance. 

The specific boundaries and further conditions will be agreed by the parties under a separate Strategic Partnership Agreement. This Agreement will set out a plan for the gradual transformation of Ukrainian railways over the next few years and will include services such as analysis and reorganization of various business lines and optimization of operations and management.

“It is important for Ukraine to increase the efficiency of Ukrzaliznytsia management and bring it to a new level in the quality of services for passengers and customers, to ensure the transition to a European model of the rail transportation market,” said Zhelko Marchek, Ukrzaliznytsia board member.

Initially, the parties will study the status of the company and draw up a Roadmap for change. At the project implementation stage, managers responsible for the implementation of the strategic roadmap will be appointed. It will continue no later than December 31, 2020. The implementation phase, from January 1, 2021, will be followed by a management phase, during which DB E&C will provide Ukrzaliznytsia with management support in accordance with the Key Performance Indicators.

Photo Credit: Ukrainian Railways

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