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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

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  • Anton Ilichov

    (Taras Shevchenko National University of Kyiv)

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.

Suggested Citation

  • Anton Ilichov, 2025. "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," Economic Synergy, Higher Educational Institution Academician Yuriy Bugay International Scientific & Technical University, issue 1, pages 212-225.
  • Handle: RePEc:bja:isteus:y:2025:i:1:p:212-225
    DOI: 10.53920/ES-2025-1-16
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    File URL: https://es.istu.edu.ua/EconomicSynergy/article/view/249/197
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    Keywords

    communal transport; reforms; electric transport; modernization; financing of post-war reconstruction; economic efficiency;
    All these keywords.

    JEL classification:

    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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