Kyiv, February 23, 2015. The nomination of the Chief Executive Officer of Ukrzaliznytsya [Ukrainian Railways] is about to be over. The most likely candidate to lead the company will be presented today. A series of other nominations is scheduled for the nearest time, including leadership positions of Ukrposhta [Ukraine Mail] and Boryspyl and Lviv airports. Andriy Pyvovarsky, Minister of Infrastructure of Ukraine, announced this during the press-briefing at Ukraine Crisis Media Center. “There is not going to be any behind-the-scenes dealings on the appointment on the leading positions at state enterprises. Everything will go through an open competition,” Mr. Pyvovarsky emphasized.
Andriy Pyvovarsky told about the new HR policy on state enterprises. Thus new finance, procurement, law and HR specialists work at Ukrzaliznytsya already. Moreover, professional workers at the low- and middle-tier positions will get an opportunity for career advancement. Mr. Pyvovarsky highlighted the importance of holistic reforms of the management structures at state enterprises. “We are keen to increase workers’ income levels; for instance, we have increased their wages by 5% in early February. On the other hand, we are going to significantly cut the number of administrative staff in order to boost the efficiency of the enterprise,” he noted.
Andriy Pyvovarsky explained the modernization program for the locomotives and train carriages at Ukrzaliznytsya’s disposal. “The number of worn-out locomotives and carriages is estimated at 90% and 80% respectively. The Ministry of Infrastructure of Ukraine works on a five-year plan to recover the locomotive and carriage parks. This plan includes localization of production, which would provide Ukrzaliznytsya with additional competitive advantage and give an impetus to the entire real sector of the Ukrainian economy,” he said.
The Ministry of Infrastructure is also engaged in negotiations on whether the state, communal or private ownership model would be most effective for the Lviv airport. Mr. Pyvovarsky stressed that the airport is an unlikely candidate for the role of a regional transport hub, however, it can be very effective as a tourist gateway. Furthermore, he explained that the Boryspyl airport should preserve balanced relations with Ukraine International Airlines, which provides the bulk of the passenger flow.
Andriy Pyvovarsky announced a number of projects that could attract foreign investments to the country. “We are working on the pilot project of a concession road. The project of Lviv-Krakivets concession road will be presented for investors’ review in the next 2-3 weeks,” he said. Also. Mr. Pyvovarsky emphasized the need to liberalize tariff policies in order to provide more incentives for private investors to enter the transport market. Thus another pilot project of state-private partnership is about to start at “Yuzhny” [Southern] seaport in Odesa. Options for privatization of stevedoring companies are under consideration as well. According to Andriy Pyvovarsky, the idea of privatization sounds appealing not only among the experts and investors, but also to the members of the maritime trade unions.
Mr. Pyvovarsky told that the transport industry is going to be decentralized. The government has submitted the bill on delegating the rights to administer local roads to the local authorities. “We are discussing opportunities to trickle the authority of Ukravtodor [Ukrainian Automobile Roads] down to the local communities. Thus they would be able to repair roads without the interference of the central government,” he concluded.