Geographically Positioned, but Still Lagging Behind

The last few weeks have not been easy ones for transport companies in Europe or around the world. The volcano in Iceland showed that even strict schedules adjusted by the no less strict business plans of airlines can collapse, as can gaps in transportation regulations. Who should pay compensation for the damage caused by cancelled flights and destroyed vacations? This is just one of the issues that have appeared on the agenda lately.

In the meantime, Ukraine is still at the preparatory stage of building up its transport and appropriate infrastructure. It had a so-called carrot for staging the EURO-2012 football championship, plans to become part of common European airspace, trade facilitation initiatives, etc. At first glance, the process looks as though it is stagnant. The crucial point is the political factor that allows investors to come as public funds alone will not be sufficient to launch these types of projects.

This is no surprise as construction of highways runs not into millions but billions of dollars. At the same time, delays and postponement of legislative changes and improvements to the general investment climate do not contribute to the state’s credibility.

Perhaps this is the right time to bring together improvements to legislative gaps, the needs of investors, experience of carrying out projects financed by international organizations, technical assistance to the transport sector and establish an effective framework for such long-expected sectoral reform?

Happy reading,
Olga Usenko