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Purpose. Development of theoretical approaches and practical recommendations for evaluation of the methods and ways of organizing mechanism for managing the competitiveness of the railways of Ukraine, which contribute to stabilize the industry in a market economy transformation and economic instability. Methods. Reforming the rail transport today is the first step towards institutional adaptation Railway Transport of Ukraine and transparent use of market mechanisms. The first reform requires qualitative improvement of the legal framework and organizational structure, which requires a systematic, integrated approach. Results. The paper proposed areas of innovation, motivation innovative processes for rail transport innovation in rail companies that will increase the competitiveness of rail transport in the transport market and improve the competitive position in the development of interspecific competition. Scientific novelty. Organizational measures to improve the competitiveness of rail transport and the need for branch development potential as a competitive activity of railway transport, accompanied by the formation of vertically integrated in the structure and maintenance of infrastructure. The practical significance. Our studies allow to say that nowadays the most important task railway complex of Ukraine to work in a volatile market economy is to provide a stable financial situation. In Ukraine, the railway infrastructure is for public funds. The current system of rail transport in Ukraine is a combination of railways and other public companies that do not actually executed in a single industrial complex with low attractiveness for investors and can not without government guarantees to attract the necessary investment in fixed assets. Given the above, you can ensure increased competitiveness of railway transport of Ukraine.

KEY TERMS COMPETITIVENESS OF RAILWAY TRANSPORT UKRAINE UNDER ECONOMIC INSTABILITY