“Under Russian shelling, UZ has turned the priority promotion of railcars into a bribe market,” Yuriy Shchuklin
26 November 2024 13:58
The shelling that damaged the railroad and port infrastructure has caused significant difficulties in freight transportation, and the actions of Ukrzaliznytsia only exacerbate these difficulties and provoke corruption practices in the industry. This is the opinion of Yuriy Shchuklin, a logistics expert and member of the EBA Logistics Committee, according to "Komersant Ukrainian".
What is the problem with UZ freight transportation?
The expert explains that in pre-war times, Ukrzaliznytsia had clear mechanisms for resolving such situations, but now these practices are not applied.
“If the pressure in the pipe is exceeded and a breakthrough occurs, the first thing you do is to shut off the water flow, repair the pipe, and open the tap only when the repair is complete. The railroad did and should do the same. There have always been problems with capacity… At the moment of a blockage, the load on the network was immediately stopped, and conventions were always introduced to resolve this blockage,”
– explains the expert.
However, now, according to him, the conventions are not applied for some reason. This causes an imbalance that is now being resolved in a “manual mode”.
Follow us on Telegram: the main news in brief
The shadow market as a result
The lack of synchronization of freight flows and the introduction of restrictions has led to a significant excess of the number of railcars in the network. According to the expert, this created the basis for corruption schemes.
“Due to the lack of implementation of conventions – temporary restrictions on loading cars in problematic areas – there was an imbalance in cargo flows. This led to the accumulation of railcars in the directions of ports and an increase in their turnover time from 9-10 to 14-16 days. As a result, an illegal mechanism of “promotion” of wagons appeared on the market, where participants are forced to pay officials and intermediaries to speed up the movement of their wagons,”
– says Shchuklin.
As a result, a situation has been artificially created where virtually all transportation market participants have to pay extra into the pockets of unscrupulous UZ officials to keep their cars from being idle, the expert says.
“I have the impression that the railroad’s businessmen have deliberately abolished their responsibility, obligations regarding delivery times, and do not introduce conventions on purpose to create “market density” and demand for “services for accelerating and promoting wagons.” In other words, in addition to the tariff, in addition to the payment for the use of the car, manufacturers are now forced to pay these “specialists” to keep the cars moving. …Those who stand in line in good faith are always in a bad position because the passage of their cars is pushed back even further. So, when such a cargo owner is pressured by obligations and threats of fines for failure to fulfill them, he is also forced to resort to the service of “paid promotion of wagons,”
– says Shchuklin.
According to him, this “paid promotion service” is not even considered a bribe by business representatives. It is already perceived as a separate payment that is included in the budget for logistics costs.
Recommendations for change
According to the expert, digitalization, data transparency, and process automation are key areas that can change the situation.
“The new head of Ukrzaliznytsia, Oleksandr Pertsovsky, has overcome the long-standing problem of passenger ticket purchases. Ukrzaliznytsia’s freight business also needs digitalization, open data, and the maximum removal of functionaries from the processes that the automated system can perform… If the new chairman of the board of UZ has the strength and ability to understand the root causes of this phenomenon and eradicate it, it will be a very significant victory,”
– Yuriy Shchuklin is convinced.
Follow us on Telegram: the main news in brief
