Expenses of Ukraine Railways in Suburban Segment Covered by 11,82%
OREANDA-NEWS. January 13, 2012. In 2011 Ukraine's railways in suburban traffic transported 363.7 million passengers. According to available data, loss from transportation of passenger by trains of suburban traffic are expected in the amount 3.1 billion UAH that by 0.3 billion UAH (10.9%) more compared to 2010 year. Payment of expenses by income is only 11.82% (in 2010 year 11.77%).
The main causes of loss of suburban traffic passenger transportation is shortfall of the amount of compensation for passengers, including the privileged categories of citizens, through the failure by local authorities of Article 9 of the Law of Ukraine "On Railway Transport" as well as low tariffs for passenger transportation in suburban traffic due to permanent lag changes in rail rates to the actual cost of transportation and inflation.
Insufficient funding of the most socially oriented segment, the lack of funds to upgrade the rolling stock leads to a deterioration in the quality of passenger service.
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