Page 61 - UKRRptDec21

Another 500 passenger cars will be built for Ukrzaliznytsia (UZ), reported Interfax. In the next two years, UZ will increase its fleet of passenger cars by purchasing another 500 units, said President Volodymyr Zelensky. "This year, Ukrzaliznytsia will receive 20 new sleeping passenger cars - the first of the hundred announced. The plans are to build another 500 of these cars over the next two years. According to the President, UZ is currently purchasing commuter trains for the City Express project.
Big Construction is expanding from road to rail, President Zelenskiy, the author of the infrastructure investment program, told a forum yesterday – Big Construction: New Railroad. “We are starting the construction and modernization of rolling stock and railways on the largest scale since the years of our country's independence,” he said. Speaking to the nation’s top railroad executives, he said the popular view of Ukrzaliznytsia is: “A prehistoric locomotive that barely pulls a train with creaking cars to dirty and uncomfortable stations.”
Aiming to connect all 24 regional capitals by InterCity fast trains by 2024, Ukrzaliznytsia plans to electrify 500 km of track over the next two years, Infrastructure Minister Kubrakov told the forum. Although 10,000 km of UZ track are already electrified, the stringing of overhead wires over another 5% will eliminate bottlenecks, including near border areas. Next year, a $135 million project starts in Donetsk Oblast. It is to cut the train ride from Kyiv to Mariupol from 14 hours today to 10 hours in 2024.
Ukraine’s exports of railway products amounted to 10.7 kt in October,
17% less m/m and 31% below the average 2020 level, according to Concorde Capital’s analysis of State customs service’s goods exports data. Exports amounted to 13.1 kt per month in 10M21 (131.0 kt for the period), 16% less than the 2020 average of 15.6 kt per month. Exports to Russia amounted to 0.4 kt in October, 2% less m/m and 92% less than the 2020 average of 5.0 kt per month. Exports to Belarus amounted to 3.2 kt in October, 34% less m/m but 6% higher than the 2020 average of 3.0 kt per month. The average export price for the railway products rose 5% m/m in October to USD 1,557/t. Ukraine’s largest railway wheel producer is Interpipe (INTHOL), which in 2020 exported 165 kt of railway products (13.8 kt per month).
Infrastructure Minister Alexander Kubrakov was equally harsh, telling the forum: “As for the degree of wear and tear of rolling stock - 90% of trains require replacement or repair. The situation is the same with locomotives. Electric trains are already 90% just scrap metal.”
Rail investment highlights are:
n 45,000 new freight cars at a cost of $3.8 billion by 2028
n 20 new diesel DPKR-3 regional express passengers trains
n 10 new InterCity trains and 60 regional commuter trains
n Signing next month of a €882.5 million contract with France’s Alstom for 130 freight electric locomotives; up to 35% of work is to be done in Ukraine
n 500-600 new rail passenger cars over the next two years
n The rail cars, diesel trains, and work on French locomotives will allow Kryukiv Railway Car Building Works in Poltava to more than double its workforce, to 12,000
n Much of the new rolling stock will be financed by $500 million in new money raised from higher freight tariffs this year and in 2022.
61 UKRAINE Country Report December 2021 www.intellinews.com