The cost of public transport in Kiev will increase to 1 UAH, the bus should not be expensive

KCSA has announced a fare increase in surface public transport of Kiev and the metro for 1 UAH. The Deputy head of Kyiv city state administration Mykola Povoroznyk told at what stage is the draft decision on the increase, why not to change the price of travel in urban buses, and when the current increase in prices may be followed by another

– At what stage now the project of the decision on increase to 1 UAH, the cost of travel in public transport in Kiev (tram, trolleybus, metro, funicular, urban train)? It’s a done deal?

– Now there is a public hearing on this issue, and also the regulatory procedure regarding preparation of the order of the Kiev mayor on raising the tariff for journey in city public transport. The decision will be made until July 15.

And when you start to act?

– Since July 15, and will begin to act.

And that already feature a public hearing that says public?

– Hearings held and hearings with trade Union committees show unequivocal support. We see support.

For reference: According to the calculations of KCSA, fares in land transport, in addition to city train will be UAH 4. Metro and urban train – 5 UAH. The cost of the monthly travel in land transport will depend on the number of trips. For example, the cost of monthly travel on a single mode of transport will be UAH 170, two types of ground transportation – 330 UAH, for three species – 410 UAH. Monthly ticket for the city train – 190 UAH. In the tickets there is no limit to the number of trips per month.

– What problem is solved by raising the fare 1 UAH?

– The economy of these enterprises shows that the current tariff is extremely unprofitable. In 2015 the rate is not increased. Thus more than 4.5 times increase in the cost of electricity and all the components. Also increased the minimum wage. By raising this rate, we will pay for the electricity, and ensure the payment of staff salaries.

For reference: According to the KSCA, the tariff for transportation of passengers in public transport in Kiev operates from February 2015 in the amount of UAH 4 for travel in the subway and city train, and in the amount of UAH 3 per trip in land transport. For the period 2015-2017, the electricity tariff was increased by 4.6 times (0,419 to 1.94 UAH/kWh (in may 2017)) and continues monthly to grow at 3% in connection with the transfer from 2017 enterprises of city electrotransport of the categories of electricity consumers “the population” in the category “other consumers” (II voltage class). The minimum wage increased by 2.6 times (from 1218 UAH to UAH 3200) in accordance with a government initiative approved by Parliament. Water tariffs rose by 20.6% (from 10.24 to 12.35 UAH/cubic meter). Spare parts has risen by 20%. The price of diesel fuel increased 1.4 times (from 16 to 23.15 UAH/l). The cost of tires increased 1.5 times (from 3826 to 5799 UAH), batteries – 1.7 times (from 2377 to 4024 UAH).

– And now there is a debt on salary payment to workers of municipal transport sector?

– No, there is no debt, but the burden bears the budget of Kyiv. Thus, (after the increase) expenditure on subsidies from the budget to enterprises will be reduced.

– What was the subsidy for 2017?

– About 1,5 billion UAH.

– After the fare increase to 1 UAH will decrease as the amount of subsidies from the city budget?

– About 0.5 billion decrease.

– Why not just raise tariffs to economically reasonable?

– There is a great desire to raise tariffs to the economically justified, but the social and financial situation does not allow to do it.

For reference: According to the KSCA, economically justified tariff for journey in public transport in 2017 is of 6.64 UAH for travel in the subway of 6.91 UAH for travel in the land transport (tram, trolleybus, bus, funicular), of 15.39 UAH to travel to the city train. According to the calculations of KP “Kiev underground”, the planned cost is of 5.68 UAH per passenger (in 2017). According to the calculations of the CP “kievpasstrans”, the planned cost of transportation per passenger land transport is of 5.76 UAH.

– Within what period after the current fare increase in public transport fare will not increase?

– It all depends on what will happen with the economic component. We must understand that if we want to travel in public transport with modern conditions, you have to pay. Free today nothing. For that someone has to pay. And our categories of beneficiaries, benefits which are stored, for them, we’d have to pay. The city must pay.

– When the second, third stage the increase in the cost of travel may be, you see?

– Look, all will depend on possibilities of the city budget. Today the rate is unprofitable. It is not cost-effective even for transportation of a passenger, today the cost of transportation of one passenger over 5 UAH. While we accept the decision on increase of 1 hryvnia, because there is a possibility of city budget to compensate for the difference. If not, will be made a decision. While such a threat I don’t see in the next year or two such threats do not see.

Now in public transport, at first glance, everywhere there are conductors, controllers. Whether the increased revenues from fare payment in public transport?

– You see, you say you grew up in. And others write to me that no one checks. But in principle we understand that if you use transport, you have to pay.

– That is, there was not an increase in income?

– Significant fluctuations can not see.

– “Kievpasstrans” today unprofitable enterprise?

– We have all subsidized the loss-making enterprises.

And if there is or is planned to update public transport Park?

Unfortunately, the rate of which we today speak, does not allow for upgrades. But the Park will definitely be updated, and this year we have plans to buy about 200 pieces of equipment at the expense of the local budget, but not at the expense of the company.

– 200 units of what type of transport?

Is trolleybus, bus, tram.

– In what time period will update the Park?

– It is up to the end of 2017 is planned.

– A tender has already taken place? It is already clear who will be the supplier of transport?

– More tenders are coming, hopefully before the end of the year we will purchase.

– How much investment is planned in the purchase of this number of vehicles?

About 2.5 billion UAH.

– This amount already is it provided?

Part provided, the part still needs to be attracted, in particular through cooperation with the European investment Bank.

For reference: According to the KSCA, in 2016, have been repaired 67 buses 119 trolleybuses, trams 165. In 2017 planned to overhaul the 105 bus (bus Park 478 units) 30 units of trams (the whole Park 439). The average repair need 240 of 589 Kiev trolleybus and tram 132. In addition, the planned overhaul of the funicular.

KP “Kiev underground” annual factory repair is required for about 200 cars. Expensive materials for work rose significantly. From the critical situation of the enterprise saved the modernization project for the funds of the Kyoto Protocol, thanks to which Kiev received 135 updated metro cars, which are able to save up to 40% of electricity.

In addition, the mandatory replacement of worn out requires a contact network. From 2004 km of contact wire is necessary to replace 260 km (over 10%).

– Are there any plans to change the routes?

– We have the appropriate studies on uptake routes. Today we have planned to open 3-4 point routes, in particular the Bank has recently launched the 114 route to the railway station at troyeschina, and is already running trunk routes 118 and 119. For new routes, including for them, and purchased new vehicles.

– The taxi fare increased at the beginning of the year and, as claimed by the companies, including in connection with the increase in the minimum wage. Should we expect further fare increase in minibuses?

– Tariff is not a free figure is the economically justified costs for the transportation of passengers. We have structures that monitor the formation of the tariff. Yes, private carriers raised prices in early 2017, but to further enhance their grounds today, no.

– And if you did drivers rates will increase, what will be the actions of the KSCA?

– We, unfortunately, are not empowered to regulate fares of private carriers, and the only thing we can and will do – to appeal as to them, and to regulatory authorities to justify the tariffs.

In other cities, when they increased the tariff, from the local authorities it was claimed that the drivers who refuse to reduce it, will be deprived of licenses. KSCA such methods will not apply?

– I hope that we will not come to need some power techniques to work with private carriers. We are fairly equal partners in the transport market, and I hope that this will not happen.

– And how many in Kiev is accounted for by transportation public transport, and how much – to share taxi?

– I think about 60% of transportation and utilities transport, 40% taxis.

– What trends are observed, whether to shrink the volume of traffic and communal modes of transport?

Why should he decline? All the market should grow at least proportionally.

Interviewed By Elena Golubeva