Ukrzaliznytsia JSC intends to put up for sale the first batches of scrap metal after a long suspension of auctions in the Prozorro system.
According to the press release, the company currently has about 160,000 tons of scrap metal ready for sale, which will be sold gradually and in separate lots.
It is noted that the railroad is currently working to ensure that the auction is held with maximum competition and number of participants, as well as successful results. To this end, the company is working in detail on each lot planned for sale and consulting with the market.
In particular, Ukrzaliznytsia held a meeting with more than 30 business representatives to discuss upcoming scrap metal auctions.
“We are actively preparing for the auctions, and all procedures have been improved. We have already switched to the updated DSTU in terms of the scrap sale procedure, as well as established a single cost for scrap loading and reduced the number of points of shipment,” said Yevhen Shramko, a member of the Board of Directors of Ukrzaliznytsia.
In addition, the parties discussed in detail payment for scrap purchase contracts, shipment terms and contract validity, and different lot sizes to meet the needs of customers.
Following the meeting, the participants agreed to exchange comments and suggestions as soon as possible to ensure the earliest possible start of the first scrap auctions on transparent, non-discriminatory and favorable terms.
As reported, after a two-year pause, Ukrzaliznytsia will put up scrap metal lots in the Prozorro. Sale in mid-May. In early April, the Cabinet of Ministers allowed Ukrzaliznytsia to independently decide on the disposal of property with a book value of less than UAH 500 million, so the company will be able to start selling scrap metal and gravel.
In September 2023, a government decree canceled the procedure for alienating Ukrzaliznytsia’s property by decision of the company’s board. The sale of property, including scrap metal, and lease of property had to be approved by the Cabinet of Ministers.
After a two-year pause, Ukrzaliznytsia JSC (UZ) will put up lots of scrap metal in the Prozorro. Sales in mid-May, according to Yevhen Shramko, a member of the company’s board.
“If everything goes according to plan, in mid-May you will see the first lots (of scrap metal – IF-U) in Prozorro. Sale… We are aiming for May 15,” Shramko said at a meeting with potential buyers of scrap metal in Kyiv on Tuesday.
According to him, Ukrzaliznytsia plans to sell about 70,000 tons of scrap metal at the first stage.
According to the presentation at the meeting, the total amount of available scrap available for sale is 159.5 thousand tons.
Earlier it was reported that in early April, the Cabinet of Ministers allowed Ukrzaliznytsia to independently decide on the disposal of property with a book value of less than UAH 500 million, so the company will be able to start selling scrap metal and crushed stone.
The Ministry of Communities and Territories Development reported that Ukrzaliznytsia will be able to sell more than 218.6 thousand tons of ferrous scrap for UAH 1.6 billion, 3.8 thousand tons of non-ferrous scrap and alloys for UAH 233.4 million.
In 2023, Ukrzaliznytsia held more than 100 successful electronic auctions for the sale of scrap and 47 auctions for the lease of property assets. The company received more than UAH 535 million in additional revenue from the sale of ferrous and non-ferrous scrap alone.
In September 2023, a government decree canceled the procedure for alienating Ukrzaliznytsia’s property by decision of the company’s board. The sale of property, including scrap metal, and lease were to be carried out only with the approval of the Cabinet of Ministers. However, the new resolution did not specify the procedure for government approval of such decisions.
To address this issue, the company initiated amendments to the resolution in December 2023.
In an interview with Interfax-Ukraine, former Ukrzaliznytsia CEO Yevhen Lyashchenko said that the company’s scrap stocks amounted to 184,000 tons at the beginning of 2023.
The company resumed holding scrap auctions in 2022 and offered to sell part of the scrap for export at foreign market prices. The company officially addressed the government with proposals to adjust the procedure for managing its property, according to which it proposed to allow the sale of some scrap to major global producers of mining and metals products under direct bilateral agreements without duty.
In addition, the company submitted a list of nearly 40 foreign companies that might be interested in the proposal.
In January-March 2025, Ukrzaliznytsia JSC (UZ) tripled the number of repaired locomotives and repaired 50% more electric trains than in the same period last year, the company’s press service reports.
“Ukrzaliznytsia has increased the volume of rolling stock repairs and component manufacturing. Due to this, in the first quarter of 2025, we record a positive trend in the volume of rolling stock repairs and production of major railway components,” the company’s press service posted on Facebook on Thursday.
In January-March 2025, 12 electric trains were repaired, which is 50% more than in the same period in 2024. The number of repaired locomotives during this period tripled to 29 units.
In addition, the number of repaired line equipment units (infrastructure elements located along the railways that ensure uninterrupted, safe and efficient operation of rolling stock – IF-U) increased by 70% (to 1173).
Ukrzaliznytsia reported that the production of sleepers in the first quarter doubled to 79 thousand units, the production of rail connectors and other components increased by 20%, and the production of reinforced concrete structures increased by 18%.
Earlier it was reported that in 2025 Ukrzaliznytsia will complete the creation of the Locomotive Company, which will centrally coordinate the existing locomotive depots. UZ has about 50 locomotive depots: repair depots that carry out major repairs and modernization of the locomotive fleet and operational depots that service locomotives between flights.
Ukrzaliznytsia (UZ) has signed two agreements to supply 32 thousand tons of rails from China as part of the relevant tenders.
According to UZ, for the first time since 2021, it has conducted a successful competitive purchase of rails through open bidding in the Prozorro system.
“In January 2025, two contracts were signed for the supply of 32 thousand tons of this critically important product. These volumes will be enough to build and repair about 245 km of tracks,” the press release states.
It is specified that under the contract, the price of the rail is $960 per ton (excluding VAT), which is significantly cheaper than previous contracts.
“Our experts visited the rail production site in China, where the first batch of 16 thousand tons has already been rolled, and conducted a detailed inspection of the products and familiarized themselves with the production process. The rail will be shipped from the port in April, and we expect it to arrive in Ukraine in three months,” the statement said.
In January-February 2025, Ukrzaliznytsia JSC (UZ) reduced its cargo transportation by 8.4% compared to the same period last year, to 26.28 million tons, said Valery Tkachev, Deputy Director of the Commercial Department, at a meeting of the UZ Exporters Office on Wednesday.
The decrease in cargo transportation is recorded for all types of traffic. In particular, the volume of domestic rail freight transportation decreased by 5.4% to 10.85 million tons, and in the export direction – by 9.1% to 13.87 million tons. Imports decreased by 15.2% to 1.52 million tons. Transit traffic decreased by 70.4% to 0.04 million tons.
The share of cargo transported in the export direction amounted to 53% in the total volume of transportation, as in January-February 2024. At the same time, the share of domestic transportation increased slightly to 41% from 40%. Imports accounted for 6%, the same as last year in the same period.
Earlier it was reported that in January 2025, UZ reduced the volume of transportation by 0.9% compared to January 2024 and by 0.2% compared to December 2024 – to 14 million tons.
Ukrzaliznytsia (UZ) is simplifying the requirements for the company’s tender purchases by reducing the list of goods that required inspection by almost half – from 92 to 47 nomenclature items.
“The company’s board has decided to no longer apply the requirements for railway use of products in procurement and has significantly limited the list of goods subject to inspection control,” the company’s press service said in a statement on Telegram on Monday.
The list of products requiring inspection control – procedures for checking the quality and compliance of products with established standards at the stage of production – will be reduced to 47 items. Currently, the list of products approved by Ukrzaliznytsia’s order No. 44 of February 1, 2016, includes 92 items. In particular, the list includes locomotives, electric trains, passenger cars, freight cars, traction motors, auto-braking equipment, tanks, refrigerated cars, wheelsets, railroad rails, and turnouts.
The new list of products subject to production and inspection control will be published on the website of Ukrzaliznytsia. The company also said that in the coming weeks, changes will be made to the standard tender documentation and announcements with amended requirements for specific procurement items will be made.
The company noted that about a quarter of the product range purchased by Ukrzaliznytsia is labeled “railway products”, which requires it to undergo a special procedure for putting into production.
The rule made it difficult for most manufacturers and suppliers to participate in tenders and created significant corruption risks, the company emphasized, noting that reducing the requirements for participants and strengthening incoming control by Ukrzaliznytsia will simplify participation in tender procedures, increase competition in bidding and ensure the required quality, the company said.
“As promised in December at the Supplier’s Day: Railway Partnership conference, we have excluded from the list all products that are not specific to railways and do not directly affect traffic safety. This makes it much easier for many suppliers to participate in our tender procedures. In fact, for the vast majority of items, we have moved the quality control stage from the qualification of participants to the delivery stage, as we are primarily interested in the quality of the products supplied to us, not the certificates that artificially restricted competition,” the press service quoted Oleksandr Nakhod, director of Ukrzaliznytsia, as saying.
The next step will be a significant reduction in the list of products requiring a conditional number (a unique identifier assigned to railway products subject to mandatory inspection control – IF-U), Ukrzaliznytsia said.
