Business news from Ukraine

UKRZALIZNYTSIA PREDICTS COMPANY TO CARRY 3.8 MLN PASSENGERS ON KYIV-BORYSPIL AIRPORT ROUTE IN 2019

Transportation on the Kyiv city-the Boryspil international airport route could reach 3.8 million passengers in 2019, according to Ukrzaliznytsia.
The company reported that as of May 22, around 25% of total works to build the high-speed railway line between Kyiv city and the airport was completed. A project on construction of the railway track was designed, the land parcels were allocated, and initial works on the site were started.
“According to preliminary data, the volume of passenger transportation by rail in 2019 will be 3.8 million passengers, with a further increase in 2020 to 4.1 million, in 2021 – to almost 4.4 million,” the company said.
In the future, it is planned to build a railway bridge 272 meters long over the Kyiv-Kharkiv highway, build passenger platforms with sheds near the Boryspil airport, completely equip the ground station and build new railroad tracks with a total length of 3.7 km.
The deadline for finishing construction is December 1, 2018. The total cost of the project is UAH 583.3 million.
Transportation of passengers by rail between Kyiv and the Boryspil airport is organized along the route between the stations Kyiv-Pasazhyrsky – Kyiv-Demiyivsky – Darnytsia – the station named after Kirpa – the Boryspil airport (Terminal D). In the future, another stop is planned near the railway overpass in the area of the highway Kyiv-Kharkiv. The rail buses of the Polish company PESA will run the route.
The estimated travel time will be 35-40 minutes. The train dwell time at the destination stations is 10 minutes.

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UKRZALIZNYTSIA WILL LAUNCH HIGH-SPEED RAIL LINE TO BORYSPIL BY DEC 1

The construction of a high-speed railway line to Boryspil airport will be completed by December 1, according to the Government Portal website.
“The object will be commissioned by December 1. The construction has started. Now we will finally agree on the type of station,” Acting Chairman of PJSC Ukrzaliznytsia Yevhen Kravtsov said during a meeting with Prime Minister Volodymyr Groysman.
“It is important to complete the project by December 1 and provide alternative transport to passengers to get to the airport or from the airport through the city and other cities of Ukraine,” Groysman said.
According to the construction project, the line will be built from the Kyiv-Pasazhyrsky station through the Vydubychi station to Terminal D at Boryspil airport. The estimated travel time is 35 minutes.
The rolling stock to be used on the line is 11 PESA 620m trains for 91 seats and two PESA 630m trains with 192 seats.

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STATE-OWNED UKRZALIZNYTSIA SEES PROFIT RISE BY 20 TIMES IN Q1, 2018

PJSC Ukrzaliznytsia received UAH 271 million of net profit in January-March 2018, which is 20 times more than in the first quarter of 2017, acting chairman of the company Yevhen Kravtsov has said, when presenting the report of the company’s work for the first quarter of 2018 at a government meeting in Kyiv.
“For the first quarter of 2018, all the main financial and economic indicators of Ukrzaliznytsia were fulfilled and overfulfilled in accordance with the financial plan. In terms of net profit, in the first quarter we received UAH 271 million of net profit, which is 20 times more than in the first quarter of 2017 and 2.5 times more than for the entire 2017. Revenues grew by almost 20%, by UAH 2.5 billion. Capital investments were 20% overfulfilled. Capital investments in the first quarter were three times more than in the first quarter of 2017,” he said.
According to Kravtsov, in the first quarter Ukrzaliznytsia paid UAH 1 billion more taxes than for the same period of 2017.
He also said that 62% of capital investments were used for rolling stock renewal, another 13% for the program of priority capital projects in infrastructure. In January-March 2018 more than 3,000 wagons were repaired, including 1,230 purchased and newly built and 1,892 overhauled cars.
In general, according to Kravtsov, over the first quarter more than 12% of the Ukrzaliznytsia car fleet was updated. Also, the number of freight locomotives was increased by 25 units, while 29 passenger carriages underwent capital modernization.

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UKRAINE ANNOUNCES TENDER TO SELECT INDEPENDENT MEMBERS OF UKRENERGO AND UKRZALIZNYTSIA SUPERVISORY BOARDS

The Ukrainian government has posted the conditions for tenders to select independent members of supervisory board of Ukrzaliznytsia and Ukrenergo on its website. The documents for participating in the tender can be submitted before May 14. The tender will start on May 21, and its results will be published on the government’s website before July 3, 2018.
Candidates for an independent member of the supervisory board of Ukrzaliznytsia should have at least 10 years’ period of service in senior positions in companies or in the civil service, in particular in such areas as railway transportation, finance, engineering, accounting and audit, management, business administration or jurisprudence, but not limited to them; have an impeccable business reputation; fluent in Ukrainian or English.
In addition, the applicant must not be (including during the previous five years) a founder, shareholder, head, member of the supervisory board, an employee or a representative of a person to which Ukraine applies personal, special economic or other restrictive measures (sanctions), and also do not have a significant business relationship with this person. Candidates must have one or several professional competencies in the following areas: strategic management, rail transport, operational efficiency, finance and audit, corporate governance, compliance and risk management, international relations.
The similar requirements are put forward to the candidates for the position of independent member of the Ukrenergo: no less than ten years of experience in senior positions in companies or in the civil service in the electricity sector, regulation of energy markets, finance, accounting, engineering, management, business administration or law.
Potential members of the supervisory board of Ukrenergo must meet the criteria of independence in accordance with the requirements of the legislation of Ukraine and the EU, pay to the position at least 30 working days a year, be fluent in Ukrainian or English, have a basic understanding of the laws regulating the scope of activities of Ukrenergo and the EU energy market, trends and prospects of the industry.
Key competencies of the candidates for the position of a member of Ukrenergo’s supervisory board are the following: strategic management; management of the power transmission system; competitive electricity market; operational efficiency; finance and audit; corporate governance; compliance and risk management.
The advantage will be the experience of working in supervisory boards, international companies and international markets, the experience of attracting investors and experience in managing transformational processes and complex projects of organizational change.

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EBRD COULD SIGN AGREEMENT WITH UKRZALIZNYTSIA TO PROVIDE FUNDS TO BUY WAGONS

The European Bank for Reconstruction and Development (EBRD) could sign one more agreement with public joint-stock company Ukrzaliznytsia in 2018 to provide funds to buy wagons. An Interfax-Ukraine correspondent has reported that Deputy Director of the EBRD for Ukraine Marina Petrov gave the information at the Ukrainian Infrastructure Forum 2018 in Kyiv.
“We hope that in the near term we will sign one more deal on the purchase of wagons,” she said, not specifying the details of the future agreement.
Petrov also said that the annual total volume of lending in the infrastructure area of Ukraine by the EBRD is up to EUR 300 million.
“We expect that EUR 150-300 million, which we usually make in the transport sector a year, we would make this year,” Petrov said.
As reported, Ukrzaliznytsia seeks to buy around 9,000 new wagons in 2018, including 5,180 from third parties. 3,400 out of 5,180 wagons to be bought from third parties some will be bought using the planned loan of the EBRD.

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UKRZALIZNYTSIA SEES UAH 20 MLN OF PROFIT IN 2018

Public joint-stock company Ukrzaliznytsia tentatively saw UAH 20 million of profit in January and February 2018, the company’s press service has reported.
The press service said that revenue from transportation totaled UAH 12 billion, which is UAH 1.3 million or 12.2% more than a year ago.
In January and February 2018, freight flow grew by 1.6% of the target and passenger flow – by 5.2% year-over-year.
“The upward pace in the financial performance of Ukrzaliznytsia in the first months of 2018 was achieved thanks to well-coordinated work of the team, constructive relations with customers and government support of the industry,” acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said.
According to the report, among other things, one of the strategic tasks for the industry is capital investments in the renewal of fixed assets. So, in the two months of 2018, at own expense, almost UAH 1.7 billion of capital investments were made, which is 2.5-fold more than in the same period of 2017. This includes more than UAH 94 million sent to the construction of the Beskydsky tunnel. Another UAH 304.2 million was allocated for modernization and UAH 156.7 million for capital repairs.