The goal of the Green Transport NGO is to highlight the significant effects of improving logistics efficiency in Ukraine by improving passenger freight and related rail services.
Why it's important
Realizing the potential of intermodal and multimodal transportation will reduce congestion, emissions and road accidents.
Our goal is to realize the potential of intermodal and multimodal transport, which will also reduce the negative effects of excessive use of road transport, such as congestion in cities and along major arteries, deterioration of road infrastructure, emissions and road accidents.
Key issues that need to be resolved on the Ukrainian railways in general and Ukrzaliznytsia in particular:
aging locomotives and rolling stock
critically worn-out infrastructure that impedes traffic in critical locations
strengthening the railway network
expanding intermodal transportation and establishing a logistics center in western Ukraine
construction of specialized terminals (for example, for servicing heavy and oversized cargo, mineral and building materials and dangerous goods)
the creation of customer-oriented trading and operating departments to provide services
The rise of corruption and low prices do not encourage the involvement of larger and possibly more professional foreign operators.
It is also clear that quality roads, increased professionalism, an effective control function and the modernization of the park are the keys to an efficient road haulage system. The trucking industry in Ukraine is able to meet the basic needs of the economy, despite the difficult economic, institutional and regulatory situation. It is considered to be symptomatic of this situation that one of the biggest challenges for road freight in Ukraine is the poor road maintenance.
As a result of the deregulation policy of the early 2000s, more than 70% of road transport operators were virtually unlicensed, which resulted in tax evasion, including the sale of fuel of bad quality, excise goods transportation without proper documentation, smuggling across borders, and using of company bank accounts border. The rise of corruption and low prices do not encourage the involvement of larger and possibly more professional foreign operators.
To top it all off, the availability of skilled workers is diminishing as the number of professional drivers and mechanics servicing vehicles has dropped from more than a million in 2011 to less than 850,000 in 2016, reflecting in part the shift to higher paying jobs abroad. More than 70% of road transport vehicles weigh less than 10 tonnes, three quarters of them are over 10 years old, and about half are Russian and Ukrainian.
This results in low fuel efficiency, increased air pollution and the practice of overloading vehicles. Considering the number of new registrations (2016), it will take from 13 to 25 years to completely renew the fleet. Rents and bank lending rates are high and virtually inaccessible to many operators, so direct purchasing is the best option when possible.
Common Problems with Road Freight:
poor road network condition
liberalization of bilateral transport, increase of the quota of multilateral and bilateral permits in parallel with increasing control over the efficiency of their use