Yevgen Kravtsov, the Chairman of Ukrainian Railways Management Board, announced that restructuring plan to be divided into three companies will be implemented by the end of this year.
Infrastructure, freight and passenger and production unit are the three future companies that will operate under the government control. This plan is in line with the strategy of Ukrzaliznytsia approved by the Cabinet of Ministers in June 2019.
“The main thing in it is that the infrastructure remains in the state regulation, and passenger and freight transportation segments are carried out under market conditions,” Yevgen Kravtsov said.
Kravtsov pointed out to several precautions, which should be taken into account before starting the process of restructuring. First, the public funding for the passenger transport and infrastructure development is required. The second is ensuring non-discriminatory conditions between private and public sector enterprises. The third matter envisages the development of a plan for solving social issues connected with the activity optimisation.
In the first half of 2019 the company’s profit was UAH 1.1 billion (EUR 40.5 million), which is double the amount for same period of last year. EBITDA amounted to UAH 7.5 billion (EUR 276 million), which is by 6% more than in the first half of 2018.
The revenues of the company were UAH 44.2 billion (EUR 1.6 billion), representing an 11% increase comparing to the first half-year period of the last year. The operating expenses grew by less than 7%. The largest share (92%) in revenues composition gained from products sale has freight and passenger transportation revenues amounting to UAH 40.5 billion (EUR 1.5 billion).