If Ukrainian railway stations are concessioned, compliance with sanitary and fire safety standards will deteriorate.
Viktor Medvid, director of William Invest Expert Consulting Company, told this at a press conference at GolosUA.
"Will the concession bring investment? The answer is no, it will not. Will it bring innovations? No, there will be no innovations. Will the monopoly be removed? No, the monopoly will not be removed. The state monopoly will simply become a private one. Will the quality increase? No, it will deteriorate, because sanitary and fire safety standards will deteriorate in order to increase the number of retail premises that are rented at a very high cost per square meter. Security will deteriorate, given that these are restricted facilities, they will be operated for other purposes, all these exits, passages, regulations, etc. will be cluttered," said Viktor Medved.
According to the expert, the infrastructure of the stations will be overloaded and will fall into disrepair faster due to its more intensive use. He also called the concession a quasi-privatization, meaning that this mechanism of cooperation between the state and private business leads to the privatization of the object given into concession. In addition, after the concession of railway stations, the cost of railway tickets may rise.
"Any private business, unlike a state-owned business, will take on work to earn a profit margin. This profit margin also covers investment risks. Accordingly, the ticket price will be higher," said Viktor Medvid.
As reported, in 2021, Ukrainian railway stations will begin to be transferred to concession (temporary operation by private companies). This was stated by Infrastructure Minister Vladyslav Krykliy.
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