DB and Ukrainian railway JSC Ukrzaliznytsia sign MoU on strategic partnership

06. February 2020, 08:00 o'Clock

Article: DB and Ukrainian railway JSC Ukrzaliznytsia sign MoU on strategic partnership

The agreement provides for support in modernization and management • DB Engineering & Consulting is one of the world's leading engineering companies in the transport sector

Deutsche Bahn has agreed to provide business and technical consulting and support to Ukrainian railway JSC Ukrzaliznytsia (UZ) in the coming years. The agreement was set out in a memorandum of understanding (MoU) signed yesterday by Prime Minister Oleksiy Honcharuk, Infrastructure Minister Vladyslav Kryklii and DB Board Member for Infrastructure Ronald Pofalla in the Ukrainian capital city of Kiev.

The agreement on this strategic partnership sets out a plan to gradually transform the Ukrainian railway over the next few years and includes services such as analysis and reorganization of the various business areas and operations and management optimization. With its 27,000 kilometers of track and some 250,000 employees, the Ukrainian railway is one of the most important railways in Eastern Europe. DB Engineering & Consulting (DB E&C), a DB subsidiary, will provide DB's contribution to the project. The engineering and consulting firm, which focuses on infrastructure, mobility and transport projects, is one of the leading companies in the sector worldwide.

“I am happy to announce that our cooperation with Deutsche Bahn has gained ground. As a result of negotiations, we came to an understanding on the format of our joint work, that would allow us to keep full control over Ukrzaliznytsia, yet involve German specialists to take the company to a whole new – European level of railway transportation. I count on German zero tolerance to corruption that would help us to change the status quo at Ukrzaliznytsia. Eventually, we expect a result that would be notable not just in terms of financial results of UZ, but also in terms of comfort of every client of the company”, – Prime Minister of Ukraine Oleksiy Honcharuk noted. 

"This will be a substantial and exciting challenge, which our engineers and managers are eager to solve," said Ronald Pofalla, Member of the DB Board. Our subsidiary DB E&C brings experience from our German network, where the company plans and manages numerous projects worth billions. DB E&C has successfully consulted on major projects throughout the rail sector for over 50 years."

"Expertise 'Made by Deutsche Bahn' is in great demand, as our order book shows year after year," said Niko Warbanoff, CEO of DB E&C. "We are pleased that we can contribute to this groundbreaking project in Ukraine."

From now until late 2021, DB E&C specialists will conduct an analysis of the current situation at JSC Ukrzaliznytsia, draw up a milestone plan, provide experienced management staff and advise the company on all steps of the restructuring process.

DB-subsidiary DB Engineering & Consulting is responsible for a large part of DB's project business in Germany. Its second area of activity, initiated in 1966, focuses on external international business.

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Further information on the DB E&C website: