Business news from Ukraine

Business news from Ukraine

“Ukrzaliznytsia” increased passenger traffic by 13%

In January-October, Ukrzaliznytsia (UZ) increased passenger traffic by 12.7% to 23.3 million passengers compared to the same period last year, the company’s press service said on Thursday.
“In October, UZ carried 2.3 million passengers, which is 100 thousand passengers more than in September, when there is traditionally a decline in the dynamics of passenger traffic compared to the summer season,” the press service of UZ said in a statement on its telegram channel.
It is reported that the most popular flight is train #128 Zaporizhzhia – Lviv, which carried 53 thousand passengers in October. The second and third places, as in the previous month, were taken by high-speed trains of the Przemyśl direction – No. 705/706 and No. 715/716 with 51 thousand and 48 thousand passengers, respectively.
The most popular route was Lviv-Kyiv-Lviv: 125 thousand passengers traveled between these cities in October.
In October, passengers purchased 532 thousand servings of hot drinks, including tea and coffee.

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“Ukrzaliznytsia” will purchase 120 grain carriers for European gauge

By the end of 2024, Ukrzaliznytsia’s branch, the Transport Logistics Center (TLC), will receive 120 units of new grain carriers of the 19-8005-U model, the center’s website reports.
“Grain carriers are designed to operate throughout the entire 1520 mm gauge railroad network and have the ability to be switched from 1520 mm gauge type 2 bogies to 1435 mm gauge bogies with screw ties and buffer devices, with a design speed of up to 120 km/h, which eliminates the need to connect coupling cars,” the Center for Transportation Logistics said.
According to the report, the grain carriers with a carrying capacity of 69.5 tons have a body volume of 104 cubic meters, size 02-VM, five loading and six unloading hatches.

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Ukrzaliznytsia has changed train schedules due to flooding in Europe

Ukrzaliznytsia (UZ) has updated information on the temporary cancellation and rerouting of a number of flights due to the massive flooding in Eastern Europe, including the cancellation of the Vienna-Budapest-Kyiv flight, the rerouting of the Chop-Vienna-Chop flight, and the introduction of shuttle service on the Prague-Premyshl-Prague flight.
“The Vienna – Budapest – Kyiv flight has been canceled today. Passengers with tickets in Vienna are asked to come to the information and service center and receive vouchers for free accommodation,” the company said on its Telegram channel.
For its part, Ukrzaliznytsia clarified that the Kyiv-Budapest-Vienna flight will be heading to Budapest. The company also announced a change in the route of Chop-Vienna-Chop flights, which will be detoured to the final station of the route.
The company also informs about the cancellation of train traffic on the route Prague – Przemysl – Prague and the organization of alternative routes.
“Prague-Premysl-Prague trains are not yet able to pass the flooded area on the Czech-Polish border. Tomorrow, shuttle traffic is expected from Prague to the border and from Przemyśl to the border with a bus shuttle around the flooded area,” the carrier said.

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“Ukrzaliznytsia” increased volume of cargo transshipment by 24.3%

In January-August 2024, Ukrzaliznytsia JSC (UZ) increased its cargo transportation by 24.3% compared to the same period last year, to 118.04 million tons, according to an analytical note prepared for a meeting of the Exporters’ Office on Wednesday.
The volume of cargo transportation in August 2024 increased by 15.5% compared to the same period in 2023 (1.9 million tons), amounting to 14.18 million tons, which is 4.2% more than in July 2024.
“Massive missile attacks have significantly affected the state of the energy sector, certain industries, and transport infrastructure, which affects the dynamics of cargo transportation,” the analytical note says.
The volume of export transportation in January-August increased by 65.8% to 57.74 million tons. According to the results of eight months of 2024, the share of cargo exports in the total volume of transportation amounted to 49% compared to 37% in the same period of 2023.
In August 2024, the volume of cargo transportation for export amounted to 6.58 million tons, which is 2.8% more than in July 2024. At the same time, compared to August 2023, when 3.3 million tons were exported, the volume of cargo transportation for export doubled.
The volume of exports through land crossings in January-August decreased by 6.9% year-on-year to 21.31 million tons. As of August 2024, the volume of cargo exports via land crossings amounted to 2.5 million tons, which is 2.4% less compared to July 2024.
In January-August, the volume of cargo exports via ports increased 3.1 times to 36.42 million tons. As of August 2024, the volume of cargo exports to ports amounted to 3.9 million tons, which is 6.5% more than in July 2024.
In January-August, 92.3% of all rail transportation to ports was accounted for by the ports of Greater Odesa, and 7.7% by the Danube ports.
Grain remains the leader in exported cargo, with a volume of 2.63 million tons in August, accounting for 40.1% of the total. Iron and manganese ore came in second place at 2.32 million tons (35.3%), followed by ferrous metals at 0.57 million tons (8.6%). Construction materials accounted for 0.48 million tons (7.2%), ranking fourth in total cargo exports in August, the company said.
“The metallurgical and agricultural sectors retain the status of the basis of Ukrainian exports in the current environment. Sea routes remain the main channel for supplying Ukrainian goods to foreign markets,” the note says.
Earlier, Yevhen Lyashchenko, Chairman of the Board of Ukrzaliznytsia JSC, said that the company suffered losses of UAH 600-700 million in July-August and expects a small loss by the end of 2024, despite profitable operations in the first half of the year. According to him, this was due to the lack of profitable cargoes that provide a safety margin.

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“Ukrzaliznytsia” suffered losses of UAH 600-700 mln in July-August – Lyashchenko

Ukrzaliznytsia (UZ) suffered losses of UAH 600-700 million in July-August and expects a small loss in 2024, despite profitable operations in the first half of the year.
“For six months (of 2024 – IF-U), we did have a profit of up to UAH 3 billion, but in July and August we faced losses. In July, it was about UAH 600-700 million, and in August we also expect a loss of up to UAH 700 million… we do not yet have the volumes of profitable cargo that give us a margin of safety,” said Yevhen Lyashchenko, Chairman of the Board of JSC Ukrzaliznytsia, at the Business Breakfast of Forbes Ukraine on Wednesday.
He expressed hope that the situation would improve as grain exports intensify after the harvesting campaign. However, this will not avoid a small loss for the year.
“I believe that if grain is exported and the volume of transportation is slightly leveled, we will make a small loss for the year, because in any case we are increasing the volume of transportation, but losses on some shipments are also increasing,” Lyashchenko said.

“Ukrzaliznytsia” plans to complete construction of European gauge ‘Chop-Uzhgorod’ in one year

JSC “Ukrzaliznytsia” (“UZ”) plans to complete the construction of the European gauge (1435 mm) “Chop-Uzhgorod” by July 2025, the press service of the company reported in the Telegram channel on Wednesday.

According to the company, the construction project provides for the construction of 22 km of railway track of European standard, reconstruction of artificial structures, facilities and engineering networks, as well as equipping the tracks with two-way semi-automatic blocking and microprocessor-based dispatch centralization devices.

It is noted that the cost of the project is UAH 1.3 billion, 50% financed from the EU Connecting Europe Facilit (CEF).

“UZ” specified that currently railroaders are assembling at their own facilities rail sleeper grating. The repair of artificial constructions along the site is also in progress.

Railroaders have already completed a set of preparatory works, including cleaning the site of construction from the thistles, bushes, completed the repair of track number 2 of the station “Strumkovka” for the movement of railroad construction equipment.

As reported, Ukrzaliznytsia received the opportunity to implement the project of construction of 22 km of Euro track “Chop-Uzhgorod” as a result of successful participation in the competitive selection of CEF projects in 2022.

 

 

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