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This week BGS Rail took part in online Meeting with Irakli Ezugbaya, Head of Freight Transportation of JSC “Ukrzaliznytsia”. Meeting’s objective was to discuss problematic issues in the field of railway freight transportation, the American Chamber of Commerce member companies are facing.
During the meeting the representatives of the company initiated a discussion on the transferring of the container terminals belonging to AT “UZ” – to concession.
First time UZ announced the idea of transferring terminals to concession 2 weeks ago. BGS Rail previously considered the possibility of participating in the concession of terminals, as this will help to build seamless door-to-door logistics chains. In addition, the ownership of container terminals next to the railway line will accelerate the company’s plans to transform into a full-fledged logistics company.
At the same time, BGS Rail is currently negotiating the investment into fitting platforms, since this market is extremely attractive in light of the development of multimodal transportation in Ukraine due to the constant growth of container rail transportation by 10-15%. At the first stage, the company plans to purchase 150 platforms (50 of those are 40-feet, 100 – 60-feet).
It is still unknown how the transparency of the concessionaire selection process will be organized, as well as whether there will be presentations of the projects from UZ and what the selection criteria will be like.
However, upon request of BGS Rail, the UZ management agreed to prepare the extended information on each of the terminals. Also, representatives of AT “UZ” guaranteed that the transfer of terminals will be transparent, with the involvement of such institutions as the EBRD and IFC.

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