Ukrzaliznytsia and German Deutsche Bahn sign a Memorandum of cooperation

Communications Department of the Secretariat of the CMU, posted 05 February 2020 16:29

Ukrzaliznytsia JSC has signed a Memorandum with Deutsche Bahn AG and DB Engineering & Consulting GmbH a Memorandum of strategic cooperation.

"Our partnership with Deutsche Bahn is a positive message for international investors and it significantly 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," said Prime Minister of Ukraine Oleksiy Honcharuk.

The cooperation is aimed to develop a concept to provide Ukrzaliznytsia with critical managerial and technical assistance in the field of freight, passenger conveyance, infrastructure development, provision of services and technical maintenance.

The specific frameworks and further conditions will be agreed by the parties under a separate Strategic Partnership Agreement. By signing the Agreement the signatories will approve a plan for the gradual transformation of Ukrainian railways over the next few years and include such services as analysis and reorganization of various activities as well as streamlining of operations and management.

"Ukraine sees it of particular importance an increase in the efficiency of Ukrzaliznytsia’s management and transfer to a new level in terms of the quality of services for passengers and customers. We should also ensure the company’s transition to the European model of the rail transportation market," said Ukrzaliznytsia Board member Željko Marček.

At the initial stage, the parties shall study the status of the company and draw up a Roadmap for change. At the stage of project implementation, the managers responsible for implementing the strategic roadmap will be appointed. 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.

Background

DB Engineering & Consulting (DB E&C) has successfully advised on major projects in the rail sector for over 50 years.

DB E&C, a subsidiary of Deutsche Bahn, is responsible for the largest share of DB's activity in Germany. The second area of responsibility launched back in 1966 is with the focus on international activities.