Business news from Ukraine

“UZ” built 528 freight cars, increased production of crushed stone, sleepers and reinforced concrete structures

In 2023, Ukrzaliznytsia JSC (UZ) built 528 freight cars at its own facilities, which was a record figure for the last five years, the company’s press service said on Thursday.

It is noted that, in particular, 427 fitting platforms were manufactured. The company also started mass production of 50 dump cars and 50 hopper dispensers.

In addition, in 2023, at its own facilities, UZ built a grain carrier adapted for transportation on a 1520 mm gauge with a 1435 mm European gauge conversion. Most of the components and materials used for its construction were produced in Ukraine, the report says.

In 2023, UZ enterprises also increased the production of crushed stone by 33% (to 2.7 million tons) and sleepers by 6% (to 867 thousand units).

The production of reinforced concrete structures increased by 10.5% compared to 2022, to 6,937 thousand cubic meters, which was also a record for the last five years.

Among other things, last year UZ launched 47 new product lines. The company manufactured 37 thousand units of various products: girders and side girders, container stops, brake shoes, shock absorbers for the absorber, aluminum door frames, compressors, and generators for passenger cars. This allowed the company to save about UAH 120 million on external procurement, the company says.

“Plans for 2024 include a 15% increase in the volume of overhauls of locomotives at UZ plants and 8% increase in the volume of electric trains, an increase in crushed stone production through orders from third-party customers, and the development of new products and technologies,” Ukrzaliznytsia said in a statement.

Earlier, UZ announced the launch of a freight car fleet renewal program. The company planned to build 1,496 thousand freight cars in 2022 at its own car repair plants – Panyutyn, Darnytsia and Stryi: 1,446 thousand gondola cars and 50 grain carriers.

It was also reported that on December 28, 2021, the Ministry of Justice registered the order of the Ministry of Infrastructure No. 647, which launched a large-scale program to renew the freight car fleet of Ukraine in the period 2022-2031, introducing a phased limitation of their service life in a loaded state for as long as 10 years and bringing this period to the standard. The service life of gondola cars is reduced from 44 years to 22 years, and that of grain carriers from 45 years to 30 years.

In addition, this initiative envisaged the launch of a railcar construction program at Ukrainian railcar manufacturers. The volume of investments in the railcar industry was estimated at over UAH 120 billion.

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