Czech Operator RegioJet Plans to Invest in the Ukrainian Railway
RegioJet, the largest private rail carrier in Central Europe, has launched new routes to Ukraine just days after Russia's invasion in February 2022.
In an exclusive interview with Forbes, RegioJet owner Radim Jančura revealed plans to invest in the Ukrainian railway system and acquire Ukrainian railcars.
Thanks to EU competition laws, Jančura transformed a student startup into the leading rail transport provider in Central Europe. Currently, Ukraine accounts for only 1% of RegioJet's business, despite transporting 11 million passengers last year. However, the situation may change with Ukraine's anticipated accession to the EU.
Jančura stated, "By the end of 2024, we plan to significantly increase our share in the Ukrainian market, aiming for a three-fold passenger growth to 500,000 annually."
Among their plans, the Czech carrier intends to launch a new Prague-Chop route and gain access to their own trains at the Mostyska-2 station in the Lviv region. Currently, RegioJet trains arrive in Przemyśl, where passengers transfer to Ukrzaliznytsia trains.
Jančura revealed that RegioJet initially planned to commence services to Ukraine in June 2022, but due to the full-scale Russian invasion, they had to start operations in February instead.
"On the second day of the war, our representative in Ukraine informed us of the Russian advance towards Kyiv, with the risk of the city being surrounded. Food, clothing, medicines, and evacuation were urgently needed," he explained.
According to Jančura, just five days later, the company dispatched the first train carrying 10 humanitarian aid wagons to Ukraine.
"We transported humanitarian aid in the passenger cars and evacuated people on the return journey," he clarified.
The entrepreneur also discussed their plans to extend the Prague-Košice route to Chop this year and potentially to Mukachevo in the future. However, electrifying the Chop-Mukachevo rail section poses challenges as part of the overhead contact network was dismantled.
"We aim to be the first European company with trains running to Uzhhorod, so we are prepared to finance the electrification of the line ourselves, creating a new popular route for tourists from the Czech Republic and Slovakia," Jančura revealed.
With the Prague-Mukachevo distance, overnight train services can be organized, allowing passengers to sleep in Prague and wake up in the heart of Zakarpattia in Mukachevo," Jančura added.
Looking towards Germany, RegioJet has plans to launch Kyiv-Berlin and Kyiv-Hannover routes in 2024. Jančura believes this project holds great potential, given that a significant number of Ukrainians travel to Germany compared to the Czech Republic.
"We hope to reach a mutually beneficial agreement with Ukrzaliznytsia," the founder of RegioJet emphasized.
Once the war concludes, the company expects passenger traffic to grow, especially as restrictions on Ukrainian men traveling abroad are lifted.
"There is currently a boom in railway transportation in the EU, and it is practically impossible to order new carriages. Ukrainian companies involved in railway rolling stock production now have the opportunity to enter the European market," Jančura highlighted.
He expressed his willingness to order 1,000 carriages from Ukrainian manufacturers if they meet EU standards and cost no more than €1 million per unit.