Business cannot wait 10 years for transport sector reform in Ukraine; the experience of Poland needs to be implemented

10.10.2024

2 min

Experts: The governments of Poland and Ukraine must align legal norms and standards for international transportation to ease tensions in this area.

Tensions between Poland and Ukraine in the field of international transportation could last for up to 10 years if EU standards, utilizing Poland’s Euro-integration experience, are not implemented. This was discussed by Polish and Ukrainian experts and market participants during a roundtable on transportation market issues, organized in Warsaw on October 10 by the Union of Ukrainian Entrepreneurs.

“If the implementation of European legislation in Ukraine’s transport sector continues at its current pace, the reform will take 10-14 years,” – noted Marta Kindrys, head of the Center for International Cooperation of the Union of Ukrainian Entrepreneurs (SUP).

Executive Director of the Union of Ukrainian Entrepreneurs Kateryna Glazkova stated:

“We cannot wait 10 years. We must involve the business communities of Poland and Ukraine, develop proposals, and present them to the governments of both countries. SUP is ready to participate in drafting these initiatives.”

In turn, Konrad Popławski, an expert from the Centre for Eastern Studies, emphasized that at the beginning of russia’s full-scale war against Ukraine, there was liberalization in the international transportation market between Ukraine and the EU, opening EU markets to Ukrainian carriers.

“In normal circumstances, such liberalization (with a candidate country – ed.) happens very slowly, with transitional phases allowing all market participants to adapt to new conditions. But at the beginning of the war, changes happened very quickly. Now, as we see the war is prolonged, new support mechanisms for Ukraine, considering Poland’s interests, need to be developed. We must acknowledge that neither country was prepared for these changes: on the Polish side, there was insufficient transportation control, and we do not fully know if Ukrainian carriers violated legal norms, and when there is a lack of information, rumors and speculations arise.”

Maciej Wroński, President of the Polish Transport and Logistics Employers Association, drew attention to the 2-3% slowdown in economic growth in the EU, which correspondingly decreases demand for transportation – a sensitive issue for most Polish carriers.

“Competition is very high. Poland has 105,000 carriers, of which only 400 are large companies, while the rest are micro-enterprises. For them, every shift in market balance or demand reduction can threaten their existence. However, this systemic issue is often overlooked in favor of concerns about competition with Ukrainian carriers. On the other hand, the increase in trade turnover between Poland and Ukraine also provides work for Polish carriers.”

At the same time, M. Wroński calls for the creation of equal operating conditions in the market for both Polish and Ukrainian carriers, including border queue management, working conditions for drivers, and even road fines, as all of these affect service costs and contribute to tensions between Polish and Ukrainian carriers. According to him, the governments of Poland and Ukraine need to develop bilateral mechanisms for control and oversight.

M. Wroński believes that the quick adoption of EU standards in Ukraine’s transport sector will resolve most of the existing issues between carriers from the two countries.

Viktor Koptenkov, co-founder of the transport company D’Art Logistic Ukraine, which operates in both the Polish and Ukrainian markets, highlighted the need for the unification of transport operation standards, pricing issues, and reporting. For example, he mentioned that Ukraine has already abandoned paper documentation and introduced electronic waybills, while in Poland, they still have to fill out “a lot of paperwork.” At the same time, the businessman believes that Poland’s experience in implementing European norms, including the use of the SENT monitoring system, will bring Ukraine closer to a customs union and accelerate the implementation of the EU-Ukraine Association Agreement in this sector.

Andrzej Rudka, advisor to the board of the Lewiatan Confederation and head of the Ukraine Cooperation Group, as well as an expert on EU economic competitiveness, stressed:

“We understand the difficult conditions Ukraine is in, but we urge the Ukrainian side to accelerate the changes needed for EU accession. Without this, negotiations will proceed slowly. There was a sudden opening of EU common markets in various areas, practically unconditionally, and now we are entering a negotiation period that will last several years. If the negotiations drag on, will the EU maintain this preferential regime for Ukraine? There is a risk that these preferences will be revoked, and the Ukrainian side must be aware of this. We need to work with our Ukrainian partners in the European market to achieve common goals rather than resist transformations.”

Starting from November 1, 2024, Poland intends to introduce changes requiring the SENT monitoring system to be mandatory for all carriers transporting goods within the country, including those from non-EU countries. This innovation is expected to address existing market issues, as reported by Polish government officials multiple times.

At the same time, the agreement between the EU and Ukraine on the liberalization of international transportation, under which Ukrainian carriers do not need to obtain special permits, has been extended until June 2025. The agreement includes a provision that allows the suspension of the agreement in one of the EU member states if its enforcement threatens the security of that country (a provision of particular importance for Poland).

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