The United States Agency for International Development (USAID) has entered into a significant collaboration with JSC Ukrainian Railways (UZ), signing a key Memorandum of Understanding (MoU) to support the development of a key 75-kilometre dual-gauge rail section. This rail link, which will connect Lviv - identified as a future transport hub in western Ukraine - to the Trans-European Transport Network, is a key step in strengthening Ukraine's export infrastructure.
This partnership underscores a significant commitment, involving an investment of $225 million, and demonstrates the United States' commitment to fostering alternative export routes for Ukraine's agricultural products. It underscores the critical role of robust infrastructure, particularly rail, in facilitating Ukraine's recovery and growth.
Ukraine's railway system uses wide-gauge tracks instead of the narrower standard gauge used in the European rail network. This difference requires freight cars to be unloaded and reloaded at border crossings, often taking more than five hours per train - a process limiting the number of trains that travel between Ukraine and Europe daily. USAID's technical assistance will play a key role in enabling UZ to build a dual gauge rail segment to speed up the transport of Ukrainian goods to the European Union.
