15:44 17.01.2013

Railway trade union offers to spend 30% of railways' profit for renovation of railway stock

2 min read

The council of Trade Union of Railway Workers and Transport Builders of Ukraine has demanded that the government cancel a decision to transfer 30% of the net profit of railways to the state budget, and instead spend this money on the modernization and renovation of rolling stock.

As the press service of State Railways Administration Ukrzaliznytsia reported, the trade union also demands that amendments be made to the state budget for 2013 regarding the allocation of money to buy railway rolling stock and modernize main railway lines, according to the Ukrainian law on railway transport. The law foresees that building and reconstruction of the main railway lines, mobilization facilities, the purchase of the railway rolling stock is funded from the state budget funds within the limits of state capital deposits.

Ukrzaliznytsia said the law "On state budget of Ukraine for 2013" does not envisage capital expenses on the development of the railways, however the improved draft of the combined financial plan for Ukrainian railways for 2013 foresees the purchase of main facilities worth a total of UAH 4.2 billion using state budget funds. In particular, UAH 2.2 billion is earmarked to buy passenger compartment cars worth a total, UAH 0.5 billion for cars to carry disabled people, and UAH 0.06 billion for special service-technical cars.

Moreover, UAH 0.45 billion was envisaged for the construction of a rail and road bridge over the River Dnipro in Kyiv, and UAH 1 billion for the construction of overpasses.

In addition, local budget funds will be spent on buying main facilities worth a total of UAH 1.1 billion, including electric trains – UAH 0.5 billion, and road-rail buses – UAH 0.6 billion.

"If in future no money is foreseen in state and local budgets to renovate passenger rolling stock, then the ability of the railways to transport passengers in the next five years will fall from 60.5 million to 40 million passengers," the press release from the Ukrzaliznytsia read.

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