Business news from Ukraine

BUSFOR UKRAINE WANTS TO INTRODUCE PASSENGER INSURANCE, FOOD

KYIV. Feb 24 (Interfax-Ukraine) – Busfor Ukraine, the online bus ticket service intends to introduce some new products for bus passengers in 2017, Busfor Ukraine Head Oleksandr Pavlovich has said.

“Busfor focuses on improving the quality of the sector. We cannot influence on vehicles, but we can place efforts in other things. What are we doing? We actively take part in the e-ticket introduction project of the Infrastructure Ministry. We are introducing services which passengers can receive from us,” he said in an interview with Interfax-Ukraine.

He said that a problem when the trip is canceled due to technical or weather reasons and passengers are not insured against this.

“We are drawing up insurance policies against cancelation of trips of baggage loss jointly with insurance companies. No one has provided yet these services and we will be the first,” Pavlovich said.

In addition, the company is designing a food delivery service before the trip to solve the problems with food with the help of partners. Food can be selected on the website in advance.

“Soon we plan to add photos of buses. Passengers would be able to assess them before the trip. This is important for the passengers… We want to experiment with 3D photos of buses,” he said.

Busfor in 2016 sold around 1 million of bus tickets. Its founders are Illia Yekushevsky and Artem Altukhov.

IMC SEES 12% RISE IN GRAIN, OILSEEDS HARVEST, 22% DECLINE IN MILK PRODUCTION IN 2016

KYIV. Feb 24 (Interfax-Ukraine) – Grain and oilseeds harvest of Industrial Milk Company (IMC) in 2016 grew by 12% compared to 2015, to 717,000 tonnes.

The holding said in a press release on Thursday that milk production in 2016 fell by 22%, to 15,000 tonnes. The decrease in milk production volumes was associated with the implementation of the project on optimization of the cattle herd. As a result of the project, the average milk yield in the IMC increased by 2% compared with 2015, to 5.6 tonnes per forage cow.

Potato harvest last year rose by 31%, to 21,000 tonnes.

Sales in the crop planting segment totaled 691,000 tonnes (9% down on 2015), including around 502,000 tonnes of corn (17% down). The decline in sales in the crop farming segment was due to lower carry-over stocks of corn at the beginning of 2016. 80% of sales in the crop farming segment (about 556,000 tonnes) was exported.

According to the report, improvement of cultivation technology, along with favorable weather conditions have led to significant yields growth of almost all crops: corn gross yield grew by 24%, to 8.1 tonne per ha, soybeans – by 31%, to 3.4 tonnes per ha, potatoes – by 38%, to 40.4 tonner per ha, and for wheat it fell by 5%, to 4.8 tonnes per ha.

IMC focuses on cultivation of grains, oilseeds and potatoes. It is one of the largest milk producers in Ukraine. It owns a storage capacity of 554,000 tonnes of grains and oilseeds. Its land bank is 136,600 ha in Poltava, Chernihiv and Sumy regions.

INTERPIPE INKS FIVE-YEAR CONTRACT TO SUPPLY RAILWAY PRODUCTS WITH U.S. PROGRESS RAIL SERVICES

KYIV. Feb 24 (Interfax-Ukraine) – Interpipe Pipe and Wheel Company (Dnipro) has signed a five-year contract to supply railway wheels and axles to Progress Rail Services, a large suppler of railway products and solutions in North America belonged to Caterpillar.

The company said in a press release on Thursday that under the terms of this contract, Interpipe will annually deliver more than 10,000 finish-machined railway wheels and more than 1,000 finished-machined railway axles to its American partners.

The first shipments of railway wheels have been already made. The production of axles is scheduled for Q2 2017.

All the products will be manufactured in accordance with the standard of Association of American Railroads and additional customer requirements.

“We started to work with Progress Rail Services, the leader of the American railway industry, back in 2014. Previously we conducted several short-term contracts, up to a year. This successful cooperation has enabled to sign of a new multi-year contract. In addition to that, we are expanding the framework of our partnership. Thanks to our continuous endeavor on the mastering of new products and the investments made, this year we will commence deliveries of finish-machined railway axles to the American market,” Intepipe CCO Oleksandr Harkavy said.

Interpipe is global producer of steel pipes and railway wheels, based in Ukraine. The company’s products are marketed in more than 80 countries around the world through a network of sales offices located in key markets of Ukraine, the CIS, the Middle East, North America, and Europe.

GOVERNMENT IN MARCH TO APPROVE PROGRAM OF AVIATION INDUSTRY DEVELOPMENT UNTIL 2020 – GROYSMAN

KYIV. Feb 24 (Interfax-Ukraine) – The Cabinet of Ministers intends in March to approve the program of development of the Ukrainian aviation industry for the period until 2020, Prime Minister Volodymyr Groysman has said.

“The program of development of the aviation industry until 2020 has been developed. The program is designed not only by officials, but real production workers, institutions, and we in March will approve this program,” the premier said at a press briefing after a meeting on aviation issues at PJSC FED (Kharkiv).

Groysman noted investments in modern technologies are important in this area.

According to him, both public and private companies work in the field of aircraft building, whose efforts need to be combined.

KYIVSTAR TO SHARE FREQUENCY BANDS WITH VODAFONE UKRAINE, LIFECELL FOR INTRODUCTION OF 4G

KYIV. Feb 24 (Interfax-Ukraine) – The largest mobile communications operator Kyivstar has proposed to the National Commission for Communications and Informatization Regulation (NCCR) to distribute some of its frequency bands in the 1,800 MHz range between Vodafone Ukraine and lifecell for introduction of 4G communications, Kyivstar President Petro Chernyshov has said on his Facebook page.

“We proposed to the commission and other operators to share Kyivstar’s frequency bands in the 1,800 MHz range for creating equal conditions for the introduction of 4G. I shall be honest with you. It would be difficult for us. We understand that we should move forward, introduce new technologies and catch the rest of the world,” he said.

He said that if the 4G tender is held only for the 2,600 MHz range, the network coverage will be only in large cities due to small radius of towers in this range.

“The one thing is left: to find common ground with one of the market players, support and understanding of NCCR in distribution of frequencies in line with the needs of subscribers,” Chernyshov said.

According to Vodafone Ukraine, Kyivstar uses 51% of frequency bands in the 1,800 MHz range, Vodafone Ukraine – 32% and lifecell – 17% fit to introduce 4G communications.

HYUNDAI ROTEM INTERESTED IN FURTHER SERVICE OF HIGH-SPEED TRAINS

KYIV. Feb 23 (Interfax-Ukraine) – Korean company Hyundai Rotem is interested in prolongation of the contract with PJSC Ukrzaliznytsia for the service maintenance of its trains running in Ukraine, company project manager Zekeriya Polat has said.
“We are constantly holding negotiations with Ukrzaliznytsia to extend the contract for service maintenance. We are also interested in servicing Skoda trains and modernizing other trains, because we have experience of modernization in other countries,” he told reporters during the event dedicated to the fifth anniversary of work of the Ukrzaliznytsia branch – Ukrainian High-Speed Railway Company.
Polat noted that since the beginning of cooperation with Ukrzaliznytsia the company has been discussing the possibility of manufacturing Hyundai trains in Ukraine, but the current situation in Ukraine, particularly in the east of the country, is delaying the issue transferring it for the far future.
As reported, Ukraine within the development of high-speed rail traffic on the eve of the Euro 2012 European Football Championship acquired ten Intercity+ class HRCS-2 electric trains manufactured by Hyundai Rotem. The first trip was made on the Kyiv-Kharkiv route on May 27, 2012.