Ukrzaliznytsia seeks to buy 30 GE locomotives in 2018, to build 10,000 freight cars

KYIV. Dec 20 (Interfax-Ukraine) – Ukrzaliznytsia in 2018 seeks to implement two key projects on modernization of rolling stock: the upgrade of traction rolling stock and restoration and building of new freight cars, acting Ukrzaliznytsia Board Chairman Yevhen Kravtsov has said.

"Today, the signing of the documents regarding the strategic partnership with General Electric is at a final stage. Next year we plan to produce and buy 30 new GE diesel locomotives with the initial localization of over 10% under the indirect financial leasing scheme with the participation of Ukreximbank," he said, presenting the plan of top priority investment projects in the Cabinet of Ministers on Wednesday.

Kravtsov said that the expected economic effect from the initial phase of the project is UAH 845 million of annual additional profit for Ukrzaliznytsia. It is planned that after the implementation of the program in 2019-2028 diesel locomotives with localization of up to 40% will be made in Ukraine.

"These are thousands of new jobs. This is access to global markets for Ukrainian engineers," Kravtsov said.

He said that the next project is building and purchase of new cars jointly with the European Bank for Reconstruction and Development (EBRD).

"Unfortunately, this year we were able to build new cars only at our facilities and by the end of the year we will build more than 2,500 cars. This figure is the largest for Ukrzaliznytsia in the last five years, but it was planned to build 9,500 cars. In 2018, we are already planning to conduct a process together with the EBRD. This is support and guarantee for tender procedures," he said.

In addition, he said that it is planned not to reduce performance at own production facilities and build up to 3,000 cars. In general, if the entire project is implemented, it would be 10,000 cars in 2018 and early 2019.