You're reading: Shkyria: Ukrzaliznytsia needs effective investors

The corporatization of the State Railway Administration of Ukraine (Ukrzaliznytsia) and the privatization of the non-profile assets of the administration will boost the efficiency of the railways' operation, MP and |Head of the All-Ukrainian Association of Automobile Carriers Ihor Shkyria has said.

Shkyria believes that the state is inefficient owner, and problems linked to the operations of Ukrzaliznytsia confirm this, his press service reported.

"A private owner organizes his business more effectively than the state. The margin of Ukrzaliznytsia is only 1-2%, while at private railways in foreign countries the indicator reaches 20%," he said.

However, he said that Ukrzaliznytsia is a monopolist in transportation by rail, which fulfills social functions, for example, in the transportation of passengers.

"It’s important to know whether the new owner will limit the rights of passengers by closing unprofitable routes and increasing fares. These are tasks of the State Property Fund of Ukraine, which should determine the conditions of the sale of Ukrzaliznytsia, taking into account the protection of the rights of passengers and cargo dispatchers," the lawmaker said.

He said that the sale of Ukrzaliznytsia’s assets should be open, transparent and with attraction of not only Ukrainian, but also foreign investors so that the state could sell its property under the most favorable conditions.

The parliament sent for repeat reading a draft law on the creation of railway transport joint-stock company.