You're reading: National railway Ukrzaliznytsia creates passenger company

National railway Ukrzaliznytsia has created a passenger company, and three out of six regional branches would transfer all production processes to the company from April 2017, Director for Passenger Transportation and Services Ihor Romankiv has said.

“This is a vertically integrated structure that would manage the entire transportation system. What this would give us? This would give us a chance to effectively use the rolling stock, as passenger flow is growing now, and it happens that one branch has additional wagons or trains, while there is no wagon in a branch that requires them. We will be able to effectively manage the rolling stock in the united company, provide for unity of technologies, technical and tariff policy and price policy,” he said in an interview with Interfax-Ukraine.

The essence of the company’s work is the complete centralization of management, he said. The public joint-stock company would walks off passenger services at the regional branches.

“We have switched to the single vertical and are getting rid of extra elements, which do not create added value,” Romankiv said.

He said that employees would not be dismissed during the process.

“We face a lack of specialists. All people have work. Optimization is being done not thank to reduction of the staff, but thanks to transportation volumes,” he said.