Conceptual approach to freight car repair base reforming under current market conditions

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Yu.S. Barash, Dr. Sci. (Econ.), Professor, Academician V. Lazaryan Dnipropetrovsk National University of Railway Transport, Head of the Accounting, Auditing and Intellectual Property Department, Dnipropetrovsk, Ukraine

Yu.V. Bulgakova, Academician V. Lazaryan Dnipropetrovsk National University of Railway Transport, Postgraduate Student, Dnipropetrovsk, Ukraine


In the days of the Soviet Union the Ukrainian car depots were quite powerful and well technically equipped. After 1991, due to cargo volume reduction, the State Railway Transport Administration of Ukraine “Ukrzaliznytsia” (“UZ”) had no longer need for the large number of the rolling stock. Unnecessary cars were cut for scrap metal. Thus, their number reduced almost by half, but the number of depots remained unchanged. At present, depots operate neither at full capacity nor in optimal regime. For partial correction of such situation the government came to a decision to increase the rolling stock downtime half as much again and conduct repairs for several car types at the same time using the stationary method. Such measures only exacerbated the existing problems. The reformation of the depot car repair base under current market conditions is an actual task.

Purpose. To increase the effectiveness of the depot car repair base functioning through its reformation.

Methodology. To achieve the purpose we have implemented the systematic approach and the general scientific and special methods such as strategic planning and decision-making.

Findings. On the basis of the study of “UZ” freight car repair activity we have drawn the conclusion about the need of car repair base reformation. We recommend the introduction of repair specialization and repair production lines, reconstruction of the freight car depots and optimization of their capacity. We have developed a rational model of Ukrainian car repair base reform. This model provides for simultaneous functioning of both the car depots of Public Joint-Stock Company “Ukrzaliznytsia” (PJSC “Ukrzaliznytsia”) and alternative private companies.

Originality. The conceptual approach to freight car repair base reformation and railway transport restructuring under current market conditions has been developed. This approach, unlike the existing one, allows reducing the repair base maintenance costs by optimizing the capacity of one part of promising depots, remaining within the facility staff of PJSC “Ukrzaliznytsia”, by separating the second part of depots as independent private structures for PJSC “Ukrzaliznytsia” rolling stock repair on the terms of the contract of outsourcing, and by liquidation or specialization change of the third part of depots, which don’t correspond the current market conditions from economic point of view.

Practical value. The research results can be implemented in the field of maintenance and repair of freight car stock of PJSC “Ukrzaliznytsia”, or mining, metallurgical and other enterprises owning freight car stock. 


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ISSN (print) 2071-2227,
ISSN (online) 2223-2362.
Journal was registered by Ministry of Justice of Ukraine.
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