Economy

Introducing new range of local rail services could make them profitable

Introducing new range of local rail services could make them profitable

Splitting local railway transportation into a range of services according to passenger groups could make train services profitable, experts from the Management Consulting Group (Kyiv) have said.

Currently electric train passengers are drawn a great variety of different social groups, each having specific requirements for this kind of transport, according to a press release of the company.

Differentiation between such groups should be done in three ways: maintaining social transportation, setting up comfort-enhanced local train services, and launching municipal light rail services and rail buses.

"This, in turn, will attract financial resources to the sector, as better quality services will give grounds to increase fares. At the same time, the launch of modern rail services is more economical compared to traditional railway transportation," the press release reads.

However, the State Railways Administration Ukrzaliznytsia has said is not considering increasing fares for this kind of transportation to an economically grounded level, as it would have to increase them by seven times.

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