The article, the substantiation, deepening and development of scientific and methodological and practical recommendations for improving the mechanism of state governance for the development of the railway industry in the conditions of structural reform of rail transport in providing the European integration vector for the formation of a competitive environment. the approach to implementation of the mechanism of state management of the development of the railway industry of Ukraine with the definition of the main, generalized by the author, goals, methods and results of implementation for increasing competitiveness ozhnosti railway industry in terms of European integration processes.The scientific and methodical approach to the reform of the railway industry of Ukraine on the basis of generalization of strategic directions of the reformation of the railway transport of Ukraine in accordance with the norms of the European Union (the formation of a vertically integrated system of economic management of rail transport, the introduction of state support for passenger transport and liquidation of their financing at the expense of revenues from other activities of railways , improvement of work of technical, border and port railway stations, has been improved the system of evaluation of economic activity in the field of railway transport, improvement of the nomenclature of expenses for economic activity in the field of railway transport, improvement of the process of management of transportation with the use of the latest information technologies, bringing railway transport standards in line with the requirements of the EU) for the effective realization of the directions of public administration of this branch and acceleration Integration of the railway industry of Ukraine.