Market Overview

City Transport in Ukraine:

Important Facts

The EU-Ukraine Association Agreement came into force on 1 January 2016. This agreement provides implementation of the European legislation and standards in transport industry. As a result of the decentralization process, budgets being at the disposal of local authorities have increased by 40%. Ukrainian regions obtained possibility to involve additional financing for own development programs.

The Global Fuel Economy Initiative is one of the new initiatives announced by the Ministry of Infrastructure of Ukraine. It is focused on support of eco-friendly transportation, electric vehicles and related infrastructure production, creation of appropriate conditions for the use of such transport in the country.

According to the Ministry of Infrastructure of Ukraine, electric transport is in operation in 40 cities: 2 646 tramcars, 3 736 trolleybuses, 1 927 km of tram tracks (177 routes); 4 412 km of trolley lines (405 routes). Annually over 2 billion passengers use services of municipal electric transport (trolleybuses, trams).

95% of tramcars and 67% of trolleybuses have exhausted their lifetime and require replacement. Most part of tram rails and power supply facilities need capital repairs or reconstruction.

Kiev – the capital and the largest city of Ukraine – needs 220 new vehicles for public transportation. Namely, 17 mln. euro are granted for purchase of 80 low-floor trolleybuses, 17,8 mln. euro – for 100 buses and 66,7 mln. euro for 40 low-floor trams.

Local budgets, loans and investors’ funds are planned to be used for the financing of urban transportation development and public transport modernization. A number of international financial institutions (EBRD, EIB, World Bank) allocate loans and grants to Ukraine for municipal transport projects. In April 2017 Ukrainian Parliament ratified the Assignment with EIB devoted to city transport development project. Total cost of this project is 400 mln. euro. Project is focused on renewal of old fleet of buses, trams, trolleybuses, metro carriages; on construction and reconstruction of tram tracks and trolley lines; replacement of traction stations, implementation of modern transport payment systems and IT systems. Involved cities - Ivano-Frankovsk, Belaya Tserkov, Kyiv, Lutsk, Lvov, Kremenchug, Odessa, Sumy, Ternopol, Kharkov, Chernigov.