DRIVER AND SYNERGY FOR THE DEVELOPMENT OF PASSENGER ROAD TRANSPORT ENTERPRISES: PUBLIC-PRIVATE PARTNERSHIP

Abstract

In the modern context, the activities of passenger transport companies are viewed not only from an organizational and economic perspective but also from a social one, as their primary function is to satisfy the public's need for mobility. This article analyzes the key challenges and opportunities in passenger road transport in Ukraine, emphasizing the need to integrate social and economic components to ensure high-quality and accessible services. According to the Constitution of Ukraine, the state guarantees citizens the freedom of movement, and its practical implementation is ensured through the development of transport infrastructure. However, existing problems such as an outdated vehicle fleet, inefficient management of municipal enterprises, and the focus of private carriers on profitable routes create significant gaps in transport services, especially in rural areas and small towns. According to 2023 data, 341 bus stations operated in Ukraine, with a passenger flow of 848,782 people. At the same time, a significant number of illegal carriers (2,171 versus 1,463 legal ones) leads to annual budget losses of UAH 2.6 billion, which negatively affects the financing of infrastructure development. To overcome these problems and ensure the sustainability of passenger transport, the use of a public-private partnership (PPP) mechanism is proposed. This approach allows for attracting private investment, innovative technologies, and effective management while maintaining state control over the quality and accessibility of services, especially on socially important but unprofitable routes. The study found that the regularity of local passenger transport is unsatisfactory. An analysis of 110 routes in the city of Berezne, Rivne Oblast, showed that only 40% of them comply with the regularity standard, indicating a systemic problem. The reasons for this situation are not only economic factors but also the outdated material and technical base of carriers. To partially solve the problem of fleet renewal and ensure public mobility, it is proposed to integrate school buses purchased under the state program «School Bus» into the passenger transport system. The program, which is part of the "Made in Ukraine" policy, provides for co-financing the purchase of buses from state and local budgets. As of September 2024, 13 regions have purchased 219 buses under the program for a total of UAH 760 million. However, the use of school buses for non-designated purposes (for example, for transporting people not involved in the educational process) is a violation. The article emphasizes that in a state of martial law, it may be possible to temporarily expand their use for transporting IDPs or other community needs, but this requires proper documentation and accounting. School buses comply with high technical standards (DSTU 7013:2009) and have special equipment that makes them safe. The financing of their transportation, in accordance with the Law «On Education», is the responsibility of local councils. The study highlights the potential for integrating school transport into a broader public transport network, which can be implemented on a PPP basis. This will optimize the use of existing rolling stock, especially in rural areas where there is a lack of regular routes. Examples of flexible volunteer transport models in communities not served by scheduled buses confirm the effectiveness of innovative approaches. Thus, to modernize passenger road transport in Ukraine and ensure citizens' constitutional right to freedom of movement, the development of public-private partnerships is crucial. This mechanism, which provides for the interaction between communities and businesses, is an effective tool for attracting resources, implementing the latest technologies and management experience, in particular, through the rational use of new buses purchased under the state program «School Bus».