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| Transportation |
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Ukraine has quite extensive transportation infrastructure, yet of significantly poorer quality than that of its East European peers. As in many other FSU countries, both railways and roads are in need of modernization. However, with relatively small investments they could be connected more effectively to Western Europe.
State railways are still effectively operated as government departments with monolithic organizational structures. Few commercial freedoms exist to determine prices or investments. There is currently no significant private sector involvement. Passenger service obligations are subsidized with freight service revenues.
Similarly, there is a minimal degree of decentralization, and no commercialization has taken place in road construction and management. All regulatory, management and resource allocation functions are centralized at ministerial level. New investments and road maintenance financing are dependent on central budget allocations. Road user charges are based on criteria other than relative costs imposed on the network and road use. Road construction and maintenance are undertaken by public construction units. There is no private sector participation. No public consultation or accountability take place in the preparation of road projects.
Table: Infrastructure: Transportation
| Air
Freight
(m tons/km) | Transport (96) Passengers
(thousands) | Roads,
m ton-km | Paved roads,
% | Rail traffic,
Km per mn US$ GDP |
| Czech R. | 22.2 | 1393.6 | 470 | 100 | 68 |
| Hungary | 29.3 | 1563.4 | 39 | 43 | 32 |
| Poland | 70 | 1805.9 | 1670 | 65 | 76 |
| Romania | 14.9 | 913.3 | N/A | 51 | 121 |
| Russia | 853.6 | 22117.1 | 887 | 79 | 420 |
| Slovakia | 0.2 | 62.6 | 59377 | 98 | 103 |
| Ukraine | 16.5 | 1151.2 | 1250 | 95 | 324 |
Source: World Development Indicators 1999.
Note: 1997 data, if not otherwise stated.
Source: Flemings/SARS Consortium, Report “The Legal and Economic Environment for Foreign Direct Investments in Ukraine”
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