The key factor should be the technical condition of the railcars, not their age: what changes is the EBA proposing?
19 May 15:23
The European Business Association (EBA) has proposed changing the rules for repairing freight cars and revising the approach to their retirement based on age. The business community insists that the key criterion should be the technical condition of the cars, rather than a formal service life. This was reported on the EBA website, according to "Komersant Ukrainian".
“The Logistics Committee of the European Business Association has already prepared proposals for a draft order by the Ministry of Community and Territorial Development of Ukraine regarding amendments to the Procedure for the Repair of Freight Cars,” the statement reads.
It is noted that member companies of the Logistics Committee have called for consideration of the issue of abolishing service life limits for freight cars.
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According to the business community, decisions on the continued operation of railcars should be made primarily based on their actual technical condition, diagnostic results, and remaining service life, rather than solely on the manufacturer’s specified service life.
“The Association notes that this approach is in line with international practice. In particular, in EU countries and the U.S., the primary criterion for the continued operation of railcars is their technical condition. At the same time, the current approach in Ukraine may lead to an additional increase in logistics costs, especially given the difficult economic situation,” the statement reads.
The business community emphasizes that this approach will allow to avoid the premature decommissioning of technically sound rolling stock and reduce the risk of a railcar shortage in the freight transport market.
Other key proposals from the business community include retaining the identification number of the repair contractor ( ) to ensure the traceability of completed work, as well as ensuring the independence of specialized organizations that can perform a range of diagnostic, repair, and registration operations.
In addition, the EBA proposes introducing a six-month transition period before the new rules take effect and clarifying certain technical terms in the document. The association notes that the proposed changes will, in particular: increase the transparency of repair work; improve monitoring of the technical condition of rolling stock; and contribute to the stable operation of the freight transport market.
Government decision on the decommissioning of railcars
As is known, the government plans a mass decommissioning of freight cars that do not meet age standards.
Experts have calculated that due to this “ageism,” the market could lose nearly 68,000 railcars by 2031. This means a severe shortage of rolling stock, as the renewal requires nearly $2 billion, which Ukraine does not have. According to analysts, the consequences for the economy will be severe, as there will be no means to transport cargo, leading to higher logistics costs and a decline in exports. This will directly impact the economy and result in job losses.
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