Ukrainian Railways (Ukrzaliznytsia) will allocate HRK 22 billion (EUR 651 million) to major investments in 2018. “HRK 7 billion (EUR 207.2 million) will go to the rail infrastructure for modernisation and reconstruction projects”, said Yevhen Kravtsov, Chairman of Ukrzaliznytsia.
Kravtsov underlined that in 2018 the company’s main objective will be to bring the rail infrastructure to normal operating parameters while struggling to lift speed restrictions to facilitate the traffic of trains.
Various projects were launched in 2017 with the same purpose and are due in 2019.
Also, in 2018, Ukrainian Railways plans to purchase 30 freight locomotives from General Electric and to build 10,000 freight cars. Regarding the procurement of locomotives, we recall that in 2017, Ukrainian Railways signed a strategic partnership with General Electric. According to it, the 30 diesel locomotives that will add to Ukrzaliznytsia’s rolling stock fleet will be manufactured in partnership with General electric with a 10% domestic localisation share of production.
Kravtsov also pointed out that according to the first phase of the project carried out in partnership with General Electric, he expected an additional annual profit of HRK 845 million (EUR 25 million). Also, in 2018-2019, after project implementation, the production localisation share of diesel locomotives will be of 40%.
On the other hand, the production of new freight cars will be carried out in partnership with the European Bank for Reconstruction and Development (EBRD) which will provide support and warrantees of the tendering procedures.
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