As part of the reform of state regulation of the transportation market, KTZ – Freight Transportation LLP will lose some functions. It is planned to separate the operator of the main railway network into an independent legal entity, independent from KTZ – Freight Transportation LLP. In addition, it is planned to create a mechanism for financing railway infrastructure from the republican budget and attract investment into the freight transportation market.
As a result of the reform, new players will appear in the market, working on the basis of public-private partnership. It is planned to create a national cargo carrier, a national passenger carrier and independent carriers. National carriers will be part of the holding structure of NC KTZ JSC along with the company operating the main railway networks.
In order to ensure accessibility of travel for the population, ticket prices in reserved seat carriages will be regulated on the basis of PPP agreements. In the meantime, ticket prices in higher-comfort carriages will not be subject to regulation. A significant reform of the principles and mechanisms for regulating tariffs for railway infrastructure services is also expected.