Formation of transport policy based on international partnership

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Ben-Gurion University of the Negev

National Aviation University

State University of Trade and Economics

Formation of transport policy based on international partnership

Viktoriia Khmurova Ph.D. (Economics), Professor

Iryna Hrashchenko Ph.D. (Economics), Associate Professor

Liubov Likarchuk Associate Professor

Abstract

The article is devoted to the actual problem that arose in Ukraine with the beginning of military aggression. Transportation is the key to the country's existence. The common transport policy, which is the guarantee of safe traffic movement on the territory of the European Community, is considered. The main directions of the process of formation of transport policy on the basis of international partnership and alternative approaches to the formation of international transport policy and transport networks of Ukraine are studied. The main requirements for transport remain its safety, but the issues of economy and environmental friendliness do not lose their relevance. The adaptation of the modern transport complex management system consists in ensuring the implementation of an adaptive transport policy on the basis of sustainable development and creating conditions for the efficient and safe movement of people and goods, taking into account the constant danger of a military nature. The initiatives of the European Union on projects based on the principles of international partnership are analyzed. Factors affecting business processes are determined. The main factors of influence on international transport policy based on international partnership have been determined.

Keywords: transport policy, partnership, international transport policy, logistics activity.

Анотація

Вікторія ХМУРОВА, Ірина ГРАЩЕНКО, Любов ЛІКАРЧУК ФОРМУВАННЯ ТРАНСПОРТНОЇ ПОЛІТИКИ НА ОСНОВІ МІЖНАРОДНОГО ПАРТНЕРСТВА

Стаття присвячена актуальній проблемі, яка постала в Україні з початком військової агресії. Транспорт є запорукою існування країни. Розглядається спільна транспортна політика, яка є запорукою безпечного руху на території Європейського Співтовариства. Досліджено основні напрями процесу формування транспортної політики на засадах міжнародного партнерства та альтернативні підходи до формування міжнародної транспортної політики та транспортних мереж України.

Основними вимогами до транспорту залишається його безпека, але питання економічності та екологічності не втрачають своєї актуальності. Адаптація сучасної системи управління транспортним комплексом полягає в забезпеченні реалізації адаптивної транспортної політики на засадах сталого розвитку та створення умов для ефективного та безпечного переміщення людей і вантажів з урахуванням постійної небезпеки військового характеру.

Проаналізовано ініціативи Європейського Союзу щодо проектів, заснованих на принципах міжнародного партнерства. Визначено фактори, що впливають на бізнес-процеси. Визначено основні фактори впливу на міжнародну транспортну політику на основі міжнародного партнерства.

Для забезпечення ефективної реалізації міжнародного партнерства у функціонуванні транспортної політики в Україні необхідно активізувати взаємодію приватного та державного секторів, забезпечити підвищення ефективності функціонування транспортних систем органами державної влади та місцевого самоврядування, запровадити децентралізацію через узгоджені напрями та дії державної політики. Це забезпечить сталий розвиток транспортного сектору України та створить вільний і конкурентний ринок транспортних послуг.

Ключові слова: транспортна політика, партнерство, міжнародна транспортна політика, логістична діяльність.

Introduction

With the beginning of military actions, Ukraine had to face the Russian regular army. The open confrontation with russia has become a serious challenge for Ukraine, which requires general consolidation and optimization of all social processes.

The international community is forced to develop common rules for the movement of international transport in conditions of increased danger. The routes are the highways on the territory of the member states of the European

Community or they cross it. Therefore, forming a common transport policy (Common transport policy) is extremely relevant today, which would consider the conditions for transporters providing services in the EU countries, beyond its borders, and would include measures to improve transport safety.

The relevance of the research topic is determined by modern external and internal challenges during the period of military aggression on the territory of Ukraine and the need for rapid implementation into the system of a common transport policy that will ensure the safety of transportation.

Analysis of recent research and publications. Problems of the formation of transport policy based on international partnership occupy an important place in the research and publications of domestic and foreign scientists: A. Boiko, N. Trushkina, V. Klimenko, N. Novalska, O. Surilova and V. Dykan, M. Omoush, P. Amri. Studies of domestic and foreign experience allow for determining the main directions of the process of forming transport policy based on international partnerships.

The purpose of the article is to research the modern transport networks of Ukraine in conditions of increased risks in terms of integration into European transport networks highlighting the possibility of developing a joint adaptive transport policy of Ukraine and the EU based on international partnership.

Formulation of the main material

Global trends in the development of transport systems indicate a rapid convergence of transport technologies and regional projects. Transport is becoming more and more energy saving and "green", safe for the passenger and the environment. Many countries around the world are already replacing cars with internal combustion engines with electric cars (Mykytenko & Drachuk, 2023; Amri et al., 2022; Kredina et al., 2022). The main trend of all vehicles is the speed and economy increase. The main goal of adapting the modern management system by transport complex is to ensure the implementation of an adaptive transport policy based on sustainable development and to create conditions for the efficient and safe movement of people and goods, taking into account the ever-increasing danger of a military nature. The development of transport infrastructure should stimulate the socio-economic development of the city, improve its image, improve the quality of transport services in certain areas and the Ukrainian agglomeration, and ensure, in the existing and expected economic conditions, a constant reduction of the negative impact of road transport on the environment. In the National Transport Strategy of Ukraine, which was developed for the period up to 2030, directions have been identified that will help improve the quality of transportation services. The Strategy provides for bringing the level of infrastructure development and service provision processes closer to European standards, as well as the need to increase safety levels and reduce negative impacts on the environment. The Strategy provides for the decentralization of tasks and functions of central executive authorities, the introduction of corporate governance in the public sector of the economy, and the implementation of effective anti-corruption policies (https://mtu.gov.ua). transport european military aggression

The National Transport Strategy of Ukraine for the period up to 2030 indicates that transport is an innovative industry characterized by the following trends (https://mtu.gov.ua):

- high technological complexity of vehicles and ergonomics, information technologies and electronic document management already implemented by

carriers, satellite navigation, and intelligent transport systems that will provide a combination of computer, information, and communication technologies for real-time transport management and will increase traffic safety and service quality to European standards;

- the use of composite materials to reduce metal content and improve the aerodynamics and safety of vehicles by European standards;

- fuel efficiency and environmental friendliness of vehicles as the basis for ensuring and activating the use of alternative fuels, "green" modes of transport;

- mass containerization, which began in the 1960^s, multimodality, and interoperability of transport systems as part of supply chains reaches maximum development;

- thanks to the introduction of high-speed modes of transport and the overall development of logistics, acceleration and timely delivery of passengers and goods are ensured;

- transport accessibility for the population provides high mobility of labor resources, reduces travel time, and increases the distance of passenger travel;

- restraining the process of motorization in cities in developed countries and further stimulating the development of public and muscle transport.

The problems of logistics companies are now clearly visible: many branches have been destroyed, bridges have been blown up, and large portions of employees have been forced to leave their homes. Additionally, the war has rendered key highways connecting the West, Center, and East (the Lviv-Kyiv and Kyiv-Kharkiv routes) unusable. As a result, logistic routes have become longer, with detours taken through safe roads. This has in turn affected the delivery times of packages, cargo, and so on, causing delays (https://cfts.org.ua).

With the start of the war, most of the clients of the logistics company ceased their activities. As a result, among other problems, the main logistics network stopped working at night due to curfew and difficulties at checkpoints. The branch network sharply decreased. After the end of hostilities in this area, it began to recover but suffered significant damage (Maruniak, 2020; Willox & Morin, 2022; Katerna, 2016). They also have to relocate their client's property from the combat zone to safe storage, which they do at their own expense. This also leads to significant unplanned expenses. In addition, one of the most important points to pay attention to is logistics reform.

Logistics optimization is the second issue after direct military action, which is crucial for the survival of the nation. Logistics optimization requires solving some clearly defined problems that can be addressed using some proven mechanisms. In Ukraine, many professionals have worked in the field of cargo transportation and have extensive experience in managing these processes. They work on the principle that there is a truck that needs to deliver cargo. This cargo will not occupy the entire cargo space. They then look for another shipment from another client or elite clients, making the delivery of the shipment cheaper. With trucks loaded in one direction and empty in the other, it is logical to find shipments that need to be delivered in the opposite direction. This principle in the delivery of goods should be brought to the national level. This way we will save fuel and reduce the movement of transport. Supply chains have been significantly disrupted. Maritime trade, which accounted for about two-thirds of our country's total external trade, has stopped. Currently, economic activity and cooperation with Ukraine in foreign trade are only possible through the land border and the ports of Romania and the Baltic countries.

Container transportation from ports in neighboring countries can be carried out by either truck (in a container or with transshipment into a covered truck) or by rail to intermodal terminals within the country (Omoush, 2022; Nycz-Wrobel, 2021). However, the combined throughput capacity of each of these options is tens of times lower than the throughput capacity of Ukrainian container terminals.

We cannot consider Ukraine separately from other countries, from our partners. While the provision of our internal needs is relatively normal (except for temporarily occupied territories and populated areas where active hostilities are taking place), we still cannot say that there are no problems at the level of international trade. At the same time, not only Ukraine itself can suffer from the war in Ukraine. Moreover, the head of our state and representatives of the UN note that in Asian and African countries, famine is possible because Ukraine will not supply food for export (Palyvoda, 2020; Danilova et al., 2021; Palyvoda, 2019; Rudenko, 2021).

War is not just a battlefield, but also an economic confrontation where logistics plays a crucial role. A vivid example is grain exports, which Ukraine mainly exports from seaports. Due to the war, the ports are blocked, and our economy is losing a significant portion of the region's export revenue (Dykan et al., 2021; Perkumiene et al., 2021; Boiarynova & Kopishinska, 2021).

It is now critically important to strengthen international partnerships in logistics and sometimes simply ask for temporary assistance. We also see that some countries are exporting Ukrainian products through their ports. This is a difficult path, and it will undoubtedly lead to an increase in the cost of Ukrainian products. However, we will be able to preserve our export potential. Another direction is road transport. Thus, businesses had to change the warehousing chain and thereby increasing the complexity and cost of these operations.

Three main factors can be identified that have affected logistics-related business processes (Abesadze, 2022; Rahmanov, 2022; Hrashchenko, 2020):

1) Abandonment of the accumulation and storage of goods. Previously, goods could stay in warehouses for a long time before being shipped out. However, now businesses have started to ship products "on wheels", trying to minimize inventory to avoid potential losses in case of an attack on warehouses;

2) Rapid and drastic changes in warehouse conditions. Normally, setting up a warehouse takes about three months, including relocating the warehouse, deploying IT systems and IT integration, setting up security systems, video surveillance, etc. However, companies did not have that much time, and they had to migrate to unknown locations in a matter of weeks if not days. Security and operational processes were compromised. The logistics, especially the warehouse, were challenging, but the companies managed to cope fairly well. A survival mode was activated, starting from scratch; basic needs such as finding warehouses, drivers, and warehouse staff were met;

3) Complications in logistics operations. This was a major problem, especially at the beginning. There were a huge number of checkpoints and inspections. There were no clear rules for movement during curfew hours: which logisticians could travel at night and which could not. Certain actions from the military did not always react appropriately to the nighttime transportation of goods.

Before the war, the sphere was developing rapidly, although not without difficulties (https://zaxid.net). It is now difficult to speak about dynamic development, but the dedication with which shippers and logisticians perform their work is noteworthy. In the situation that has arisen, it is not enough just to create logistics centers and electronic services that facilitate and optimize cargo transportation. The idea of competent logistics needs to be popularized. In Ukraine, a large number of projects based on international partnerships have been implemented.

On May 7, 2009, at the Prague Summit, the "Eastern Partnership" was launched at the initiative of Poland and Sweden. It covers six Eastern European countries such as Ukraine, Georgia, Azerbaijan, Moldova, Armenia, Belarus, and 28 EU member states. The basis is the desire to deepen cooperation between the Eastern European and South Caucasus countries with the EU. The goal of the "Eastern Partnership" is to replace partnership and cooperation agreements with association agreements, which will provide for the renewal of the contractual and legal basis of relations, the creation of free trade zones, and the liberalization of the visa regime between the EU and partner countries.

In January, 2016, the European Union launched a project called "Support to the Implementation of the Association Agreement and National Transport Strategy" with a total value of 3,740,000 euros. The project aims to provide technical assistance towards the harmonization of Ukraine's transport legislation with the priorities of the Association Agreement and to assist in the modernization, implementation, and monitoring of the National Transport Strategy. In the field of railway transport, in June? 2019, the Twinning project "Support to the Ministry of Infrastructure in introducing conditions for the application of the European model of the railway transport services market in Ukraine" was completed. The project aimed to support the Ministry of Infrastructure in developing a strategy for the development of railway transport while implementing the relevant EU legislation, managing infrastructure and providing free access to infrastructure, and granting access to railway enterprises to the railway services market.

The European Union has launched the implementation of the following projects based on international partnership initiatives:

1) The Twinning project "Approximation of Ukrainian legislation in the field of airport/airfield certification and flight suitability with relevant EU norms and standards" worth 1.7 million euros. The project aims to enhance flight safety and integrate Ukraine's civil aviation into the EU system by supporting the process of certification of Ukrainian airports/airfields following pan-European norms and adapting Ukrainian legislation in the field of flight suitability to EU law;

2) The Twinning project "Support for the Ministry of Infrastructure of Ukraine in strengthening commercial transport safety standards" worth 1.55 million euros. The project aims to improve the certification level of professional competence of road carriers, drivers, and vehicles to develop and increase the efficiency of road transport safety management in Ukraine;

3) The project "Support for the Implementation of the Association Agreement and National Transport Strategy" is worth 3.74 million euros. The project aims to provide technical assistance in strengthening EU-Ukraine cooperation based on the tasks of the Association Agreement and the Agenda of the Association of Ukraine with the EU regarding regulatory convergence in all types of transport and assistance in updating and fulfilling the tasks of the National Transport Strategy of Ukraine.

At the initiative of the US Department of Treasury, the following projects are being implemented based on international partnership:

1) the project of advisory and technical assistance to the US Army Corps of Engineers for the Ministry of Infrastructure. The project aims to assess and prioritize the reform of the internal water transportation system for cargo, taking into account natural conditions for transportation and existing navigation issues$

2) the project for the development of transportation infrastructure. The project aims to provide technical assistance to support the development of transportation infrastructure and to carry out reforms in the transportation sector.

At the initiative of the European Investment Bank, the following projects are being implemented based on international partnership (https://mtu.gov.ua; https://cfts.org.ua): The project "Support to the Ministry of Infrastructure in implementing priority projects for the development of urban passenger transport". The project aims to provide technical assistance in the development, implementation, and monitoring of the EIB investment project "Development of Urban Passenger Transport in Ukrainian Cities", which will contribute to the development of national policy in the field of urban passenger transport, following the goals set out in the Association Agreement between Ukraine and the EU in May, 2014 and lead to improved regulatory support and necessary organizational changes at the central and local levels.

As part of international cooperation and partnerships, the following projects are planned to be implemented:

At the initiative of the European Union:

1) The project "Assistance to Ukrainian authorities in improving the management of infrastructure projects" is worth 2.5 million euros. The project aims to promote effective, reliable, and transparent management of infrastructure. To provide technical assistance and identify obstacles to planning and implementing projects in the field of transport infrastructure, the project involves the development of a detailed analysis and preparation of a plan to improve the management of infrastructure projects in Ukraine and assist in implementing this plan;

2) The Twinning project "Institutional support for the Ministry of Infrastructure on improving the efficiency and competitiveness of railway transport in Ukraine" is worth 1.6 million euros. To promote the effective development of the railway transport sector in Ukraine, the project aims to improve the institutional and functional structure of the central executive authorities in the railway industry;

3) The Twinning project "Assistance to the Ministry of Infrastructure in improving the capacity for the transportation of dangerous goods by multimodal transport in Ukraine" is worth 1.1 million euros. The project aims to improve the system of multimodal transportation of dangerous goods using road, rail, sea, and inland waterway transport, as well as multimodal connections following European norms and standards.

The World Bank has initiated a project to implement reforms in the transport and logistics sector to improve the business climate in Ukraine. The project, which is worth 1.54 million euros, aims to provide technical assistance in the following areas: developing a strategy for transport logistics to support priority state reforms in road transport, railway transport, inland water transport, and ports; overcoming existing investment problems by eliminating major barriers to investment, entrepreneurship, and employment in the transport and logistics sectors; creating a system of indicators and assessing their economic impact in terms of investment to promote the reform process in this sector, create jobs, and stimulate entrepreneurial activity. The World Bank is also assisting and developing a plan of action to establish an approach for the rapid identification of priority corridors and the increased efficiency of investments in the transport network in Ukraine.

At the initiative of the Japan International Cooperation Agency, data collection and analysis on the current state and risks of the logistics and transport system in southern Ukraine are being carried out for researching the construction project of the Mykolaiv Bridge.

The difficult economic situation and the increased risk of development of the transport system require a clear plan for the application of the opportunities of international companies, both in terms of safety and in terms of the laying of alternative routes. The involvement of international partners is a way to address partially the issue of forming a modern transport policy. International partnership in the direction of forming a transport policy should be aimed not only at transporting necessary military products and humanitarian aid but also at restoring logistical chains in safe areas of Ukraine.

Conclusions

To ensure the effective functioning of transportation policy based on international partnership principles, it is necessary to harmonize the legal system norms of Ukraine with those of the EU in the field of transport. This will in turn ensure the effective implementation of administrative reform in the transportation sector, and a clear delineation of regulatory, management, and operational functions between executive authorities and enterprises, which is extremely important in modern conditions of increased risks. Achieving effective functioning of transportation policy based on international partnership principles will improve the following aspects:

1) competitiveness and efficiency of the transportation system as a whole;

2) innovative development of the transportation sector and implementation of global investment projects;

3) safety for society, environmentally friendly and energy-efficient transportation;

4) unhindered mobility and interregional integration.

To ensure the effective implementation of international partnership in the functioning of transportation policy in Ukraine, it is necessary to activate interaction between the private and public sectors, ensure that government and local self-government bodies increase the efficiency of transportation systems, and introduce decentralization through coordinated directions and actions of state policy. This will ensure the sustainable development of Ukraine's transportation sector and create a free and competitive market for transportation services.

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