“Ukrzaliznytsya” does not understand how to balance market pull — Ryazantsev

The conference GRAIN UKRAINE the journalists were traveling by train. In the same train for the event went and the Director for economy and Finance of PJSC “Ukrzaliznytsia” Andrey Ryazantsev. “I always go by train, it is comfortable for me,” admits the speaker.

Ryazantsev is very characteristic of the speaker. In addition, his statements always cause heated discussions in the market. Don’t know whether this is due to the position or character.

Delo.ua “waylaid” Ryazantseva on the same GRAIN UKRAINE and asked questions about what, who and how should prescribe rules for the admission of private traction on the market of railway transportation, the beneficiaries and the closure of unprofitable freight stations.

You can call the time when the railroad will be allowed private pull?

We now understand that the private thrust must exist. It should operate on the Ukrainian railway market. The only time it should not be in the form of “Makhnovshchina”.

Today, no one showed you how to be the carrier. We must prescribe the rules of the game? I don’t think. Today there is only the phrase “private rod”, no one even understands how it should work. Yes, there is a law about railroad transportation, but did not accept, and the output you need to look today.

If a company wants to buy a locomotive to haul cargo from point a to point B, to fully provide for themselves, is the “Makhnovshchina”. If you go in such a scenario, we will have 300-1,5 thousand or even more, given the fact that today in the us 15 thousand customers. And here we have these 1.5 million customers will be the operators and will carry the loads as they see fit. There is a world of such practices.

The BONDS offered the option of leasing locomotives from setting them on particular routes for balancing the traction market. While the legislation and regulations will not regulate the admission of private thrust, it will not appear on the railroad.

Let’s go from the reverse. Who should prescribe rules?

Market.

This broad concept.

There are professional associations that can this question and to consolidate at the top level to offer. To offer the experience project. We are ready to work with the market, as we can see these rules.

And how do you see them?

We are still in February and made suggestions. BONDS sees the carrier, which can ensure the transport of all three types of traction. He must have the appropriate infrastructural premises of locomotive crews, should be spelled out the safety mechanism on the railway etc.

But, again, this is our proposal. The market itself should prescribe the conditions of admission, and we in turn have to agree. We need to understand how to optimally use the capacity of the railway, this railway thread, graphics is a lot of technical work.

Today, we have no applications from any client who wishes to become operator on the railroad. There are those who wish to take your own load faster and better.

But it is not the admission of private traction. This all preceded the throughput calculations. For example, the company will purchase 10-30 locomotives, will spend about $ 4 million per locomotive, and then it turns out that the infrastructure will not miss this amount of cargo. It turns out that in the direction of only one branch, which goes through a certain number of trains, and which is already loaded. What then?

Specify, please. You say you have provided the market rules, and say the market needs these rules to determine.

Every time we are discussing one and the same. “Ukrzaliznytsya” has repeatedly proposed to create working groups and to discuss the issue of tolerance. It’s not just one working group: should the group, responding to the question of how to work the operator must prepare “Ukrzaliznytsya” to the admission, etc. But nobody talks the subject of constructing a business process.

But sooner or later private craving will come to Ukraine is the EU Directive.

And who should carry out this Directive? We invited the market to give us locomotives in leasing, we are ready to pay 15% per annum. How many proposals were received? No.

The problem is that when the market will see an acute shortage of locomotives, will become acute and the problem of the infrastructure. Today on the renewal of the fleet of locomotives we are just beginning a dialogue, and we have 43% for the overdue maintenance of the track. Because of this, we gradually reduce the speed of traffic.

You need to prevent situation?

The BONDS in the long term from 23 to 30 years need to earn UAH 1.05 trillion and invest in locomotives and railway tracks. The cost of updating 100% of the fleet of locomotives (this is 1987 units) is 215 billion UAH, and the cost of updating 100% W/the ruts — 825 billion.

The current tariff, and our revenue rate in UAH 0.33 per 100 tonne-km is 3 times lower. Today, the locomotive and the painting doesn’t pay. For comparison, the rate is 2-10 times lower than in other States.

This is the basic thing. We are on the path of eating away. For today the residual value of locomotives is 10%. This means that after 5 years BONDS for every 10 locomotives will be able to only buy one locomotive.

The only component of the cost we had in the country is lower than in neighboring countries — wages. But with this we have a problem. Today in colleges to students in the last year companies from the near abroad give scholarships, if they are after graduation will go to work to them. And we are forced to raise wages to a level close to the level of the same Poland. At least on the scarce specialty.

We have all the costs in world prices for today: fuel, consumables. Despite the fact that TIES all buys at world prices, your final product should be issued in 7-10 times less than in the former Soviet Union. But the miracle does not happen.

As I understand it, the BONDS will be to discuss the issue of tariff increase 3 times?

We all need to first understand what today’s rate should be. Then look at the expansion — optimization of the infrastructure, involvement of local authorities to increase commuter traffic, reimbursement of expenses for beneficiaries, etc. then leave at the basic rate and to align the indexes to change it in time and run the test for 3-5 years.

What about stations?

The stations are generally a sensitive issue: today, 53% of freight stations generate less than 3% of the total traffic, and 49% of the road sections carrying only 1.1% of the total number of goods. OPEX for the maintenance of excess infrastructure amounts to more than UAH 6 billion per year. This suggests that the infrastructure created in Soviet times and which was carrying over 1 billion tons of cargo, today, transporting goods in 3 times less, not to allow yourself to recover, especially at this level of transport cost. Well, once again let me remind you that today 35% of the railway generates 93% of revenue.

How much can you save if you close the unprofitable freight station?

By optimizing the infrastructure for maximum of we can save 6 billion UAH, which are used to Finance low-level areas of movement and stations.

We have cases where a dead-end stretch of 80 km at the end of one station, which is the average daily load of 0.9 of the car. At this length only works inspectors 40. What is the cost of such transportation, can you imagine? And even if this segment rides the commuter train with one locomotive pulling one car? This price space.

But the train is a social function of “Ukrzaliznytsya”.

So nobody says to remove the passenger message. But it is wrong when one locomotive pulling one car. And it’s a regular flight. In such situations, you need to switch to alternative modes of transport.

For example: have the commuter train which this year carries about 400 passengers and gives a revenue of 6 thousand UAH, and the cost of it in year 12 million UAH. Is this normal?

We provide the function, but the contents of passenger transport cost in 2017 and 10 billion loss. Pay for it other activities — cargo, utility.

As you can see the solution to the issue with the beneficiaries?

UZ needs to calculate your fare with zero profitability. It must review and approve of the Ministry. Then the government is monetizing these benefits, a person buys a ticket for this approved zero cost, and the state pays him a benefit. The second option is to exclude the beneficiary from the process. But then there should be a mechanism of compensation to us. We celebrate each beneficiary, and the state pays for his travel.

In the first place “Ukrzaliznytsya” as a monopolist engaged in predatory pricing. But it is at least strange situation when a monopolist selling its services below cost, as is happening in the passenger sector. I don’t think this is a normal situation. Thus we are not allowed to develop alternative modes of transport, thus destroying themselves. Sooner or later we will come to that suburban passenger transportation “Ukrzaliznytsia” will eat your main funds, and the market will not be one of the competitors, who could replace her.

As UZ want to unify the tariff?

Need to revise and streamline the formation of tariffs for the “Ukrzaliznytsia”. It is the unification, the destruction of such a system as “freight class” and the arrival of a new economic model, which is based on the calculation of the required cash flow for the resumption and operation of fixed assets by companies involved in the transportation process.

You also need to regulate fares and charges, whose ideology was founded on the principles of planning and economic management, and not on the market.

For example, the return of empty car. Everyone understands that there is no correlation between the cost of such transportation and of the cargo that was driving in the car. In the end, the cost of his return shipping exactly the same. But the income rate for these operations, according to the collection of tariffs differs significantly depending on the type of cargo that went in it. Accordingly, it is necessary to understand what somebody in this situation being overcharged. If we talk about the grain market, in this case it pays more than others. And BONDS pays, because the tariff does not cover costs, as we said earlier. Here we wanted to unify everyone to pay for themselves, and the BONDS they receive as much as they should.

Is not yet possible. Lobbyists for private companies knock at different levels of this initiative. But to implement this overall rate has risen by only 3-5%.

And we say that it is not relevant to the current situation at least 3 times. That’s why I say that it is necessary to realize all the level of these figures, and then sit down and decide how we go further. But this should be done quickly, otherwise we remain with the network W/e 4 times smaller in the next 10-15 years, and the locomotives will be 10 times less over the next 5 years.

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