Ukrzaliznytsia has signed a Memorandum of Understanding on strategic cooperation with DB Engineering & Consulting GmbH.
The purpose of cooperation is to develop a concept for providing Ukrzaliznytsia with the necessary managerial and technical assistance in the field of freight, passenger transportation, infrastructure, the provision of services and maintenance, According to the Ukrainian goverment portal.
“Our partnership with Deutsche Bahn is a positive message for international investors and it improves the investment attractiveness of Ukrainian Railways for international capital flows as well as facilitates leveraging necessary funding to upgrade the infrastructure and rolling stock of the company,” Prime Minister of Ukraine Oleksiy Honcharuk said.
Specific boundaries and further conditions will be agreed upon by the parties under a separate Strategic Partnership Agreement. This Agreement will determine the plan for the gradual transformation of the Ukrainian railway over several years and include services such as analysis and reorganization of various business lines and optimization of operations and management.
“It is important for Ukraine to increase the management efficiency of Ukrzaliznytsia and bring it to a new level in the quality of services for passengers and customers, to ensure a transition to the European model of the railway transportation market,” Ukrzaliznytsia Board member Željko Marček said.
At the initial stage, the parties will examine the state of the company and draw up a Roadmap of changes. At the stage of project implementation, managers will be appointed responsible for the implementation of the strategic roadmap. The deadline for the execution of the stage is no later than December 31, 2020. Following the implementation stage, starting January 1, 2021, there will commence the managerial stage, during which DB E&C is intended to provide Ukrzaliznytsia with management support in accordance with the Key Performance Indicators.