Strategic development of cargo transit services: a case study analysis

Purpose. Recently, foreign economic activity in Ukraine has gradually shifted towards the European Union (EU). The EU’s special interest in the potential of Ukraine’s transit transport lies in the geographical position of the country, which is located on the main routes of international freight traffic. The article aims to study the status and development opportunities in the field of transit freight transport of the Ukrainian railway joint-stock company (JSC Ukrzaliznytsya) within the framework of European integration.Methodology. The article presents the analysis of the activity of the JSC Ukrzaliznytsya in the field of transit freight transport for the period of 2005-2017 and outlines the strategic prospects for its development as a significant transit route considering the conditions of European integration. The methodology included theoretical and practical research using statistical methods; methods of comparative analysis; ABC analysis method; and taxonomic method.Results. The JSC Ukrzaliznytsya was analysed to determine the status of its activity in the field of transit freight transportation for 2005-2017. A structural-dynamic analysis was made to estimate cargo volumes transported by railway enterprises and related revenues. 18 types of cargo were identified using the ABC analysis method based on two indicators, namely, “volumes of transportation” and “revenues from cargo transit”. Also, taxonomic indicators of the level of system development were considered and revenues from cargo transit for the analysed period were estimated. Finally, recommendations were proposed regarding the development of a joint-stock company as a strategic cargo transporter under the conditions of European integration with Ukraine. Practical implications (if applicable). The results of the conducted research and performed calculations confirmed the need to refocus the management activity of the JSC Ukrzaliznytsya in the field of cargo transit towards strategically important cargoes, which have the largest share in the structure of financial results. This will enable the company to achieve its leading role as a strategic transit carrier of the European Union in the near future.