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Ukrainian Railways (Ukrzaliznytsia) has established a new subsidiary called Ukrainian Railways Cargo Poland, which will handle freight transportation in European markets, according to Ukrainian Deputy Prime Minister and Minister of Infrastructure, Oleksandr Kubrakov.
“Today, the European direction of rail transport is a matter of rapid logistics and support for the Ukrainian economy. The establishment of a European operator will significantly improve the management of freight traffic in the European direction. At the same time, we are modernizing border infrastructure, increasing its capacity,”
said Oleksandr Kubrakov.
The Ukrainian Ministry of Infrastructure also announced that the new operator would initially focus on the following areas: providing comprehensive freight transport services, coordinating operations with European operators, cargo owners, and border crossings, as well as overseeing the company’s rolling stock abroad.
Reuters commented that the railway connecting Ukraine with Western countries has helped millions of people escape from war following the Russian aggression in February 2022. Railways are also crucial for trade and humanitarian aid, especially given the challenges in using shipping routes in the Black Sea.
Ukraine has been forced to redirect the majority of its exports to rail and road transport. The authorities are also collaborating with Poland to align the width of railway tracks with European standards to expedite transportation. Currently, a significant amount of time is spent exchanging wheelsets at the border, Reuters reported.
The establishment of Ukrainian Railways Cargo Poland reflects Ukraine’s commitment to expanding its presence in the European freight transport market. By creating a dedicated operator, Ukraine aims to enhance logistics efficiency, strengthen trade ties, and contribute to the economic development of both Ukraine and its European partners.
The new subsidiary will not only provide freight transportation services but also serve as a key facilitator in coordinating operations with other European operators and cargo owners. This will streamline cross-border procedures and ensure seamless transportation flows across the continent.
Moreover, the modernization of border infrastructure, as mentioned by Minister Kubrakov, will be instrumental in increasing capacity and reducing transit times. By investing in upgrading border facilities and improving logistics processes, Ukraine aims to create a more favorable environment for trade and transportation between Ukraine and European countries.
The significance of railways in Ukraine goes beyond economic aspects. During times of conflict and humanitarian crises, railways have proven to be vital for facilitating the movement of people and humanitarian aid. The railway connection between Ukraine and Western countries has provided a lifeline for those seeking refuge from the devastating consequences of war.
In collaboration with Poland, Ukraine is working to align its railway tracks with European standards, a crucial step to optimize transport operations and improve connectivity. By eliminating the need for time-consuming wheelset exchanges at the border, the efficiency of cross-border freight transportation will significantly increase, benefiting both Ukraine and its European partners.
The establishment of Ukrainian Railways Cargo Poland marks a significant milestone in Ukraine’s efforts to strengthen its position in the European freight transport market. Through enhanced logistics capabilities, improved infrastructure, and increased cooperation with European partners, Ukraine is poised to become a more influential player in the region’s transportation landscape.