Ukrainian railroad to have a European three-tier management system

A reform of the organizational structure of PJSC Ukrainian Railways envisages the transition to a transparent three-tier management system based on a European model. The new statute of the enterprise was developed by the Ministry of Infrastructure of Ukraine and presented by Minister of Infrastructure Andrii Pivovarsky, on Thursday, June 11.

According to the Minister, retrofitting offers the transition to the triple division of management functions in the Ukrainian Railways: the Cabinet of Ministers of Ukraine and the Ministry of Infrastructure – the Supervisory Board – the Management Board. The functions on each level will be clearly distributed: the Ministry of Infrastructure and the Cabinet of Ministers will be responsible for the strategic development, while the Management Board and Supervisory Board - for operational and business decisions.

In order to ensure transparency and efficiency of activity of the Supervisory Board it is planned to include not only representatives dealing with operations management, but independent experts, comprising international experts.

Andrii Pivovarsky explained, a “good host” principle shall be applied in the new structure: each of the verticals shall be subordinate to a particular Board member who is responsible for the particular function in the company, its plans and results of operations.

In the process of reforming the enterprise, according to the Minister, among the ultimate goals is "to launch to upgrade management system at the account of Ukrzaliznystia resources".