Business news from Ukraine

UKRZALIZNYTSIA TO ELECTRIFY TRACK SECTION FROM KYIV TO BORYSPIL AIRPORT

PJSC Ukrzaliznytsia is holding talks about the electrification of the track section from Kyiv to the Boryspil International Airport, acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said on the sidelines of the event devoted to the final stage of the selection of projects at Future of Mobility Lab.UZ edition on October 29.
According to him, in case of passenger traffic growth, the company plans to add a diesel train produced by Kriukov Car Building Works on the Central Railway Station – Boryspil Airport route.
“Depending on the demand in the project launch process, we are planning to increase the number of trains and cars of trains. We have an agreement with the KCBW [Kriukov Car Building Works] for the supply of diesel trains. Perhaps they will be exploited in this section in the future, if there is a demand,” he said.
According to Kravtsov, the project’s payback period is 9-10 years, and the planned load during the first year should be at least 80% of the capacity.
“Now we are coordinating the schedule, since after the launch of this express train, the section between Darnytsia and Boryspil will be one of the most stressful in Ukraine, especially considering the large number of passengers, including commuter traffic. We plan that in the first stages of launching the frequency in the peak hours will be about 30-40 minutes, in non-peak hours – 40 minutes or an hour and a half,” Kravtsov said.
He also said that now Ukrzaliznytsia is discussing the need for night trains with the airport – the need for such trips is being discussed, taking into account the small number of night flights from the airport.
The train will be launched by the end of November, but there is no exact date yet, since there are a number of remarks from Prime Minister Volodymyr Groysman, which should be taken into account, Kravtsov said.
He also said that negotiations are now being completed with the State Aviation Service of Ukraine and UkSATSE regarding the electrification of the section from Kyiv to Boryspil.
“As soon as this is done, it will simplify the issue of using various types of trains on this route,” he said.

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UKRZALIZNYTSIA TO LAUNCH EXPRESS TRAIN TO BORYSPIL AIRPORT

PJSC Ukrzaliznytsia in November 2018 will launch an express train to the Boryspil international airport (Kyiv region).
“In February was the project, in May – the start of works, and in October – a test launch of the train. In November it will be the launch of the express train,” Prime Minister of Ukraine Volodymyr Groysman said on his Twitter account on Thursday.
The prime minister said that the cost of the project was about UAH 580 million, recalling that the estimated cost of the “infamous Air Express” in 2010 amounted to UAH 3.2 billion.
Groysman also pointed out the convenience of creating a covered gallery between the airport terminal and express platform.
As reported, Transportation on the Kyiv city-the Boryspil international airport route could reach 3.8 million passengers in 2019, according to Ukrzaliznytsia. The company expects that with a ticket price of UAH 80 the payback period for the project will near 10 years. Ukrzaliznytsia does not deny the scenario of increasing the cost of travel, depending on the demand for the service, as well as the factors that negatively affect its production cost for the company.
The estimated travel time will be 35-40 minutes.

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BORYSPIL INTERNATIONAL AIRPORT PLANS TO BUILD CARGO TERMINAL NEXT YEAR EVEN IF NO INVESTOR FOUND

State-owned enterprise (SOE) Boryspil International Airport plans to start building a cargo terminal in 2019 even if no investor is found, Director Pavlo Riabikin said at the Global Outlook 2018 conference organized by the European Business Association (EBA) in Kyivy. According to him, the existing cargo infrastructure of the Boryspil airport was formed in the late 1960s – early 1970s and it was designed to handle about 40 tonnes of cargo per day. “Today we process 110-120 tonnes of cargo a day, which is very problematic with the existing infrastructure,” Riabikin said.
According to him, in the past four years there has been a lot of talk about attracting investors and creating an investment project for the construction of a cargo terminal at the airport, but due to the fact that the state has few mechanisms for attracting investors to infrastructure projects, this has not been realized.
“Next year, if the ministry [the Infrastructure Ministry] fails to attract an investor, we plan to build a new cargo terminal based on existing capacities, but we will implement it using own forces. To be honest, the volumes of investment that we need in coming years make the implementation of the cargo terminal very difficult,” the head of the enterprise said.
Riabikin said that the project for the construction of the cargo terminal is not a profile for the airport, since the company is oriented, first of all, to passenger transportation.
“I think we are able to implement it [the construction of the cargo terminal] during a year and a half. The only question is whether we have the funds or the opportunity to attract them,” Riabikin said.

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RYANAIR STUDYING POSSIBILITY OF CREATING SERVICING CENTER IN BORYSPIL AIRPORT – INFRASTRUCTURE MINISTER

Ukraine, in particular the Boryspil international airport, have good opportunities for creating an aircraft servicing site in the conditions of a shortage of these services in Europe, and the largest European low cost airline Ryanair showed its interest in these opportunities, Ukrainian Infrastructure Minister Volodymyr Omelyan has said.
“In Europe, all slots are booked for two years ahead,” he said at a meeting in the European Business Association (EBA) on Thursday.
Omelyan said that in the middle of July representatives of Ryanair will arrive in Kyiv and they will get acquainted with the site for the possible placement of this center.
In his opinion, there are enough specialists in Ukraine to provide these services, in particular, these are new opportunities for Antonov State Enterprise.
At the same time, the minister said that there are barriers to the creation of this servicing center, in particular, the legislation sets high duties on the import of spare parts.
Ryanair CEO Michael O’Leary in May this year said that the airline is considering the possibility of opening of Ukraine’s own data center, and in the long term it is also interested in the opening of the center for servicing aircraft in Ukraine. An examination of the regulation of these activities in Ukraine, including by the European authorities, should be conducted.

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CARGO TERMINAL AT BORYSPIL AIRPORT WILL BE LAUNCHED IN 2018-2019 – INFRASTRUCTURE MINISTER

There is a high probability that as early as 2018 a new cargo terminal will be launched at Boryspil International Airport, Minister of Infrastructure Volodymyr Omelyan has said following talks with a large international air cargo operator hold on June 20.
“It is realistic: next year it should be launched,” he said at a meeting at the European Business Association in Kyiv.
The minister explained that there are three options for implementing this project: in one of the terminals of Boryspil airport, on the location of Ukroboronprom or one of private land sites adjacent to the airport.
According to him, the company with which the negotiations were conducted plans to study all these possibilities. Omelyan did not reveal its name. He estimated the amount of investment in the project at $30-100 million depending on the stages of its launch.
The minister said the demand for these services in Ukraine has grown exponentially over the past five years.
“There is actually no cargo terminal at Boryspil. Only Ukrposhta loaded its capacity,” the minister said.
According to him, if two years ago the airport handled one tonne of cargo, now it is 160 tonnes a day.

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PARKING AREA CONSTRUCTION IN BORYSPIL AIRPORT TO BE COMPLETED IN AUGUST

Contractor NAN LLC (Kharkiv) plans to complete construction of a parking area near Terminal D of the Boryspil International Airport (Kyiv) in August 2018, First Deputy Director General of the airport Yevhen Dykhne has told Interfax-Ukraine.
“The contractor expects to complete the work in August, which will be the first stage of the parking area for more than 1,000 cars,” he said on the sidelines of a forum dedicated to cybersecurity in Kyiv on Tuesday.
He also said that the airport allocated UAH 440 million for the implementation of this project at this stage.
“Further we will consider the efficiency of this parking area, how much it is necessary to continue the second stage of the parking area in the short term, because the number of parking lots in the project is designed with a large margin,” he said.

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