INFRASTRUCTURE

UKRAINE "THE TRANSIT BRIDGE BETWEEN THE EU AND ASIA"

Roads

 

The national network of public automobile roads is 169,652 km long, including 47,000 km of state roads and 122,000 km of local roads.  In 2017 major road restoration projects took place in Ukraine with 2,177 km of public roads repaired. The State Road Fund was established and began operations on January 1, 2018.  For the first time in the country’s history, Ukraine has a dedicated source of revenues for road repair and construction.  Approximately 120,459 km of local public roads were transferred to the local governments with appropriate funding.

 

Airports

Ukraine has a differentiated network of direct and transit air traffic.  Ukrainian airlines performed 92.2 thousand commercial flights in 2017, a 16 percent increase over 2016.  In particular, international flights amounted to 77.7 thousand, a 14 percent increase over 2016.  The Boryspil air hub generally manages air transit via Ukraine.  In 2017, Boryspil Airport had the largest number of flights in the airport’s history.  The number of serviced passengers increased by 2 million, to 10.55 million, which is 23 percent more than in 2016. On December 1, 2017, the second major airport Lviv Danylo Halytsky International Airport served a million passenger a year

Railway

 

Ukraine’s operational railway network is one of the largest in Europe, stretching over 20,952 km, of which 9,926 km (47 percent) were electrified. The rail system, which moves 60 percent of the country’s total exports, is nearly completely outdated.  The Ministry of Infrastructure estimates that 97 percent of the rolling stock required modernization or replacement. On February 23, GE Transportation, Ukrainian Railways, and UkrExIm Bank signed the final contract for the purchase of 30 new U.S.-made locomotives and officially announce the agreement to the public.  Under this ten-year agreement modernization and service of additional 150 locomotives and supply of another 195 locomotives are planned.  The draft law “On Railway Transport of Ukraine” introduces a new regulatory framework for the functioning of the industry (tariffs, rules for access to infrastructure, new market access procedures – licensing, security certification, locomotive driver access, etc.).

 

 

Sea and River

 

13 ports operate in the Azov and the Black Sea basins and the Danube River Delta, and their total cargo capacity exceeds 230 million tons per year.  The reform of the maritime transport industry has been launched.  The State Service for Marine and River Transport was established and will begin operations on August 1, 2018.  

 

 

Postal Services

 

“Ukrposhta” is actively implementing an investment program, for which in 2017 $26.7 million were allocated: for upgrading motor transport for regional routes - $5.1 million, departmental computerization -$6.9 million, POS terminals purchase – $1.1 million, equipment for international mail – $1.1 million.  “Ukrposhta” now provides an opportunity for money transfers.  The permission of the National Bank of Ukraine should facilitate money transfer for residents of rural and remote areas of Ukraine. 

"Drive Ukraine 2030" 

The National Transport Strategy was approved on May 30, 2018 by the Cabinet of Ministers of Ukraine.- 2030,

Volodymyr Omelyan, the Minister of Infrastructure of Ukraine mentioned the Strategy represents the planned program  to support the development of transport and infrastructure industries in the next 12 years: "Yes, the strategic document  aims not only to solve current challenges, but also to create a new and modern infrastructure reality in Ukraine. We can endlessly repair roads or modernize wagons, which are 40 or more years old, but only ambitious plans and a "big infrastructure revolution" can bring new reality to Ukraine. Developing a modern state requires a modern approach."

According to Volodymyr Omelyan, the strategic goal is to integrate Ukraine into the global economy and make a technological leap in infrastructure.

"Drive Ukraine 2030" is about Ukraine's transformation into a developed, high-tech and innovative country with modern transport, infrastructure, and new technologies. "Drive Ukraine 2030" is about digital infrastructure, transport safety, self-driving cars, transport corridors, and transport and infrastructure network unified with the European Union".

Opportunities

Sea and river:

Concession of three sea ports and state-owned stevedoring company “Olvia”, and privatization of Ukrainian Danube shipping company; reconstruction of Dnipro locks ($57 mln)

Airports:

Remonstration of five regional airports (CAPEX up to $500 mln) and modernization of the air navigation system ($136 mln)

Roads:

Upgrade of five regional roads ($2.5 bln)

Railway:

Construction of European 1435 mm rail track high speed connection with EU and Odessa-Kyiv-Lviv route ($8.5 bln), 

Electrification of the railway line Dolinska - Nikolaev – Kolosovka ($416 mln), electrification of the railway section Berdychiv-Korosten-Berezhest ($162  mln), and construction of Kyiv Boryspil train connection

Postal Services: 

Construction of new mail sorting centers ($150 mln), track fleet renovation ($100 mln), and computerization of the network ($15 mln)