Implementation of value based management in joint-stock company Ukrzaliznytsia

Abstract

The transport industry plays a crucial role in Ukrainian economy, providing services for domestic, export/import, and transit carriage of goods and passengers. Today Ukrzaliznytsia is responsible for 80,1 % of transport operations in the overall structure of cargo transportation carried out by all types of transport (excluding pipelines) and 32,1% of passenger traffic (excluding urban electric transport). Moreover, it generates up to 2,6% of Ukrainian GDP.

Among its strategic objectives there are transformation of Ukrzaliznytsia from a quasi-monopoly to a market-oriented and competitive leader; elimination of internal inefficiencies through better business management practices in line with best international standards; introduction of a modern effective processoriented management system.