DIGITAL TRANSFORMATION OF RAILWAY PASSENGER INFRASTRUCTURE IN CONDITIONS OF LIMITED RESOURCES
Abstract
The article tackles the accelerating degradation of Ukraine’s railway system, a problem intensified by full-scale war and decades of structural under-investment and contends that mere physical repairs will fail unless coupled with a far-reaching digital transformation. The methodological toolbox combines system-structural analysis, statistical modelling of traffic and asset losses, comparative benchmarking of German, French and Chinese digital rail programmes, and compound annual growth rate (CAGR) calculations that forecast a 10% yearly expansion of the global digital-rail market to 2032. Empirical results quantify direct wartime damage at US $4.3 billion, identify a 20-30% potential reduction in maintenance outlays through predictive-maintenance algorithms, and demonstrate a positive net present value for thirty priority projects under conservative tariff and discount-rate scenarios. This robust financial evaluation further emphasizes the importance of well-planned investments in digital infrastructure for resilience. Practical significance is embodied in a donor-oriented road map that sequences infrastructure hardening, cyber-secure data platforms, and situational-awareness centres, aligns them with existing World Bank, EBRD, and EIB funding windows, and offers a transparent «CAPEX versus OPEX-savings» matrix for project selection Implementation of the recommended modules is expected to significantly enhance the efficiency and resilience of the railway network, reducing delays, increasing system availability, and improving fault-diagnosis capabilities. These improvements will strengthen logistical support for both civilian operations and defence mobility, ensuring rapid response capabilities and maintaining the continuity of essential transport services even under challenging conditions. The study therefore provides policy-makers and investors with a rigorously costed, technologically coherent pathway for rebuilding a safer, greener, and fully interoperable Ukrainian railway in line with EU standards, strengthening the nation’s strategic connectivity.
References
Global Railway Digital Transformation Market Report 2023-2032. URL: https://www.globenewswire.com/news-release/2023/08/02/2716472/0/en/Global-Railway-Digital-Transformation-Market-Report-2023-to-2032.html (дата звернення: 16.06.2025).
Ukraine’s railroad workers play crucial role in creating a lifeline during war. URL: https://www.pbs.org/newshour/show/ukraines-railroad-workers-play-crucial-role-in-creating-a-lifeline-during-war (дата звернення: 17.06.2025).
A Roadmap for Digital Railways. URL: https://uic.org/com/IMG/pdf/a_roadmap_for_digital_railways.pdf (дата звернення: 17.06.2025).
Smart railway solutions designed for the digital age. URL: https://www.al-enterprise.com/en/industries/transportation/rail (дата звернення: 18.06.2025).
European Union Agency for Railways. Digital Transformation of Railway. URL: https://rail-research.europa.eu/wp-content/uploads/2018/04/DIGITAL_TRANSFORMATION_RAILWAYS_2018_web.pdf (дата звернення: 19.06.2025).
Boston Consulting Group. Route to a fully digitized rail system. URL: https://www.bcg.com/publications/2025/route-to-a-fully-digitized-rail-system (дата звернення: 19.06.2025).
Задоя В. О., Чаркіна Т. Ю., Корольов Д. С. Цифрові інструменти та технології в управлінні науковими проєктами. Review of transport economics and management. 2024. Т. 12, №28. С. 224–232. DOI: https://doi.org/10.15802/rtem2024/328104
Чаркіна Т. Ю., Задоя В. О. Діджитал менеджмент та маркетинг як центральний фактор цифрової економіки. Вісник економіки транспорту і промисловості. 2024. № 88. С. 100–108. DOI: https://doi.org/10.18664/btie.88.326974
Обруч Г. В. Особливості цифрового розвитку АТ «Укрзалізниця». Вчені записки Таврійського національного університету імені В. І. Вернадського. Серія «Економіка і управління». 2020. Т. 31 (70), № 1. С. 59–64. DOI: https://doi.org/10.32838/2523-4803/70-1-10
Дикань В., Корінь М. Концепція впровадження цифрового реінжинірингу в діяльність промислових підприємств. Адаптивне управління: теорія і практика». Серія «Економіка». 2020. Вип. 8 (16). URL: https://amtp.org.ua/index.php/journal2/article/download/292/264 (дата звернення: 23.07.2025).
Rethinking public-private partnerships to bridge the infrastructure gap. URL: https://cepr.org/voxeu/columns/rethinking-public-private-partnerships-bridge-infrastructure-gap (дата звернення: 19.06.2025).
Transport and digitalization: Enhancing cross-border operations. URL: https://unece.org/sites/default/files/2024-02/ECE-TRANS-WP30-2024-Inf03e.pdf (дата звернення: 20.06.2025).
The journey toward AI-enabled railway companies. URL: https://www.mckinsey.com/industries/infrastructure/our-insights/the-journey-toward-ai-enabled-railway-companies (дата звернення: 13.07.2025).
Річна фінансова звітність за 2022 рік. URL: https://www.uz.gov.ua/about/investors/financial_statements/ (дата звернення: 22.06.2025).
Ukrzaliznytsia to overhaul locomotives. URL: https://www.railwaygazette.com/ukrainian-railways-and-industry/ukrzaliznytsia-to-overhaul-locomotives/61374.article (дата звернення: 21.06.2025).
UK train companies could have to pay disabled passengers more compensation after rule change. URL: https://www.theguardian.com/uk-news/2025/may/18/uk-train-companies-could-have-to-pay-disabled-passengers-more-compensation-after-rule-change (дата звернення: 04.07.2025).
Artificial intelligence. URL: https://www.oecd.org/en/topics/artificial-intelligence.html (дата звернення: 05.07.2025).
Frigid Fuxing cuts end-to-end timings. URL: https://www.railwaygazette.com/traction-and-rolling-stock/frigid-fuxing-cuts-end-to-end-timings/61374.article (дата звернення: 05.07.2025).
Global Railway Digital Transformation Market Report 2023-2032. Available at: https://www.globenewswire.com/news-release/2023/08/02/2716472/0/en/Global-Railway-Digital-Transformation-Market-Report-2023-to-2032.html (accessed June 16, 2025).
Ukraine’s railroad workers play crucial role in creating a lifeline during war. Available at: https://www.pbs.org/newshour/show/ukraines-railroad-workers-play-crucial-role-in-creating-a-lifeline-during-war (accessed June 17, 2025).
A Roadmap for Digital Railways. Available at: https://uic.org/com/IMG/pdf/a_roadmap_for_digital_railways.pdf (accessed June 17, 2025).
Smart railway solutions designed for the digital age. Available at: https://www.al-enterprise.com/en/industries/transportation/rail (accessed June 18, 2025).
European Union Agency for Railways. Digital Transformation of Railway. Available at: https://rail-research.europa.eu/wp-content/uploads/2018/04/DIGITAL_TRANSFORMATION_RAILWAYS_2018_web.pdf (accessed June 19, 2025).
Boston Consulting Group. Route to a fully digitized rail system. Available at: https://www.bcg.com/publications/2025/route-to-a-fully-digitized-rail-system (accessed June 19, 2025).
Zadoia, V., Charkina, T. and Korolov, D. (2024), “Digital tools and technologies in scientific project management”, Review of Transport Economics and Management. vol. 12 (28), 224–232. DOI: https://doi.org/10.15802/rtem2024/328104
Charkina, T. Yu., and Zadoia, V. O. (2024), “Digital management and marketing as a central factor of the digital economy”, Visnyk ekonomiky transportu i promyslovosti, vol. 88, 100–108. DOI: https://doi.org/10.18664/btie.88.326974
Obruch, H. V. (2020), “Features of the digital development of JSC “Ukrzaliznytsia”, Vcheni zapysky Tavriiskoho natsionalnoho universytetu imeni V. I. Vernadskoho. Seriia: Ekonomika i upravlinnia, vol. 31(70), 59–64. DOI: https://doi.org/10.32838/2523-4803/70-1-10.
Dykan, V., and Korin, M. (2020), “Concept of implementing digital reengineering in industrial enterprises”, Adaptyvne upravlinnia: teoriia i praktyka. Seriia: Ekonomika, vol. 8(16). Available at: https://amtp.org.ua/index.php/journal2/article/download/292/264 (accessed June 23, 2025).
Rethinking public-private partnerships to bridge the infrastructure gap. Available at: https://cepr.org/voxeu/columns/rethinking-public-private-partnerships-bridge-infrastructure-gap (accessed June 19, 2025).
Transport and digitalization: Enhancing cross-border operations. Available at: https://unece.org/sites/default/files/2024-02/ECE-TRANS-WP30-2024-Inf03e.pdf (accessed June 20, 2025).
The journey toward AI-enabled railway companies. Available at: https://www.mckinsey.com/industries/infrastructure/our-insights/the-journey-toward-ai-enabled-railway-companies (accessed July 13, 2025).
Richna finansova zvitnist za 2022 rik [Annual financial report for 2022]. Available at: https://www.uz.gov.ua/about/investors/financial_statements/ (accessed June 22, 2025).
Ukrzaliznytsia to overhaul locomotives. Available at: https://www.railwaygazette.com/ukrainian-railways-and-industry/ukrzaliznytsia-to-overhaul-locomotives/61374.article (accessed June 21, 2025).
UK train companies could have to pay disabled passengers more compensation after rule change. Available at: https://www.theguardian.com/uk-news/2025/may/18/uk-train-companies-could-have-to-pay-disabled-passengers-more-compensation-after-rule-change (accessed July 4, 2025).
Artificial intelligence. Available at: https://www.oecd.org/en/topics/artificial-intelligence.html (accessed July 5, 2025).
Frigid Fuxing cuts end-to-end timings. Available at: https://www.railwaygazette.com/traction-and-rolling-stock/frigid-fuxing-cuts-end-to-end-timings/61374.article (accessed July 5, 2025).