Problems of the efficiency of the functioning of the market of passenger transportation services in the conditions of the stateof war: identification and ways of overcoming

Anton Ilichov
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Anton Ilichov: Taras Shevchenko National University of Kyiv

Economic Synergy, 2025, issue 1, 212-225

Abstract: The article analyzes the challenges facing public transportation in the capital during the war and outlines potential development paths for the post-war period. It's crucial to note that assessing the performance of municipal transport enterprises is complex due to the threat of enemy shelling and their pre-war financial struggles. The development of an efficient urban public transportation system is a complex economic challenge that demands a rational selection of a transport market organization model. The chosen model will shape the level of competition, the attractiveness of the sector for investments, and ultimately, the quality and accessibility of transportation services, which are essential for the well-being of city dwellers. The article examines factors affecting service quality and the financial health of both municipal and private carriers, as well as approaches to interpreting economic efficiency and the passenger transportation market. It also investigates the decline in passenger traffic at Kyiv's public utilities, its underlying causes, and the war's impact on the transportation system. The "Recovery Plan of Ukraine," approved in 2022, specifically addresses the prospects for urban transport development. The text highlights that urban transportation was in a poor state even before the Russian invasion and that territorial communities now face the challenge of renewal, modernization, and overall reform. It emphasizes the need for legislative and regulatory changes at the local level to attract funding for post-war reconstruction. A multi-faceted evaluation of transportation enterprises' economic efficiency necessitates considering various financial, socio-economic, and operational factors, as well as the external factor of regional security. The analysis concludes that the unsatisfactory economic condition of municipal enterprises stems not only from wartime challenges but also from mismanagement in the pre-war period. The primary priorities for restoring the urban transportation system should be comprehensive, consider socio-economic development factors, and align with the country's overall reconstruction plan.

Keywords: communal transport; reforms; electric transport; modernization; financing of post-war reconstruction; economic efficiency (search for similar items in EconPapers)
JEL-codes: C53 G17 G21 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bja:isteus:y:2025:i:1:p:212-225

DOI: 10.53920/ES-2025-1-16

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