EBA proposes changing rules for repairing freight cars, calls for abolition of service life limits

The European Business Association (EBA) Logistics Committee has prepared proposals for a draft order from the Ministry of Communities and Territories Development of Ukraine regarding changes to the freight car repair procedure and called for the abolition of service life limits, according to a message posted on the association's website on Monday.

Key business proposals include maintaining the repair contractor's identification number for tracking work, ensuring the independence of the special diagnostic organization, and introducing a six-month transition period before the new rules come into effect.

Furthermore, the association emphasizes the need to abandon the practice of limiting the use of railcars solely based on the manufacturer's stated service life. Businesses believe that the continued use of rolling stock should be determined by its actual technical condition and remaining service life, in line with international practice in the USA and EU. According to EBA estimates, the current approach in Ukraine leads to an additional increase in logistics costs.

Reducing shipper costs and reforming rail infrastructure were also discussed during a recent meeting of the EBA Logistics Committee with representatives of JSC Ukrzaliznytsia. The parties focused on steps to reduce cross-subsidies between the freight and passenger segments.

Oleh Yakovenko, Director of the Strategy and Transformation Department at Ukrzaliznytsia, presented the results of a two-year pilot project to reform passenger transportation financing, for which the state had previously allocated UAH 16 billion from the reserve fund. In 2026, the state order will only apply to domestic long-distance and regional services. Meanwhile, the suburban segment, which is not currently covered by state funding, generates approximately UAH 11 billion in annual losses, which continue to be covered by freight transportation.

According to Ukrzaliznytsia data cited in a business association publication, by the end of the first quarter of 2026, the company had met approximately 95% of its planned transportation volume and 97% of its planned transportation costs. The main challenges facing the project remain the irregularity of reserve fund payments, the lack of a methodology for accounting for allocated costs, problems with commuter service coverage, and uncertainty regarding funding for 2027.