PJSC "ArcelorMittal Kryvyi Rih" proposes to introduce private traction at pilot sites

Enterprises consider the increase in their own car fleet and the introduction of private traction on the railways of Ukraine not as a business, but as an opportunity to fulfill their contractual obligations, said Andrey Moroz, head of the external logistics department of ArcelorMittal Kryvyi Rih PJSC in his speech at the Rail Expo 2018 conference.

According to him, the growth of stocks in the warehouses of enterprises of the mining and metallurgical complex and other industries indicates their need for the transportation of a larger amount of cargo. This applies to both export directions and domestic ones in Ukraine. “Our company has to resort to importing limestone through the ports, although the main sources of this raw material are enterprises in Western Ukraine and Donetsk region. But it is not possible to significantly increase the export of limestone within the country, because of this, part of the needs has to be covered by imports. Why did we buy 500 cars this year? Not to make more money. In fact, this is a forced measure in response to the risks associated with the non-export of raw materials and finished products. In the same context, it is necessary to consider the persistent requests of enterprises to introduce private traction, ”explained Andriy Moroz.

The head of the external logistics department of PJSC "ArcelorMittal Kryvyi Rih" suggested using the experience of Kazakhstan, where pilot projects are being implemented to use private shunting traction in certain areas, transferred to shippers by the Kazakhstan Railway (KTZ). The experiment makes it possible to study in practice all the controversial issues and understand how the newly-minted carriers meet the qualification requirements that the state and KTZ impose on them, as well as understand all the pros and cons of extending this project to long-distance transportation.

“I think that in Ukraine it is also better to start with small pilot projects, with shunting mono transportation in those areas where one shipper dominates. For example, our company has its own enterprise for the extraction and processing of limestone in the Kherson region, where it is difficult to provide traction at certain stations. The introduction of private or leased traction in certain areas would help us improve transportation and reduce the share of imports for this raw material. Such pilot projects would make it possible not only to highlight the shortcomings of the regulatory framework, to solve land issues related to the operation of pilot railway sections, but also to determine the real qualification requirements for private carriers. Such requirements should not be discussed behind closed doors, the dialogue should be honest and public, so that this does not lead to the preservation of the monopoly or the emergence of several privileged operators, ”stressed Andriy Moroz.

In his opinion