Income from domestic cargo transportation of JSC Ukrzaliznytsia in October 2020 increased by 3.2% against October 2019, up to UAH 2.2 billion.
According to the press service of the company on Monday, in September, income from domestic cargo transportation was 6% higher (compared to September 2019) and amounted to UAH 2.1 billion.
According to Ukrzaliznytsia, such indicators became possible due to organized route departures, improved operational efficiency, improved dispatching, and elimination of the locomotive shortage by extending the service legs.
It is reported that the largest increase in income in September-October was recorded in transportation of mineral construction materials, ferrous metals, iron ore and grain cargo. In addition, the positive dynamics of income was shown by transit freight rail transportation, amounting to 19.5% and 5.9%, respectively. In monetary terms, income from transit traffic amounted to UAH 635.6 million in September, and UAH 523 million in October.
Income from domestic cargo transportation of JSC Ukrzaliznytsia in October 2020 increased by 3.2% against October 2019, up to UAH 2.2 billion.
According to the press service of the company on Monday, in September, income from domestic cargo transportation was 6% higher (compared to September 2019) and amounted to UAH 2.1 billion.
According to Ukrzaliznytsia, such indicators became possible due to organized route departures, improved operational efficiency, improved dispatching, and elimination of the locomotive shortage by extending the service legs.
It is reported that the largest increase in income in September-October was recorded in transportation of mineral construction materials, ferrous metals, iron ore and grain cargo. In addition, the positive dynamics of income was shown by transit freight rail transportation, amounting to 19.5% and 5.9%, respectively. In monetary terms, income from transit traffic amounted to UAH 635.6 million in September, and UAH 523 million in October.
As reported, from November 1 to November 19, Ukrzaliznytsia loaded more than 15 million tonnes of cargo, which is 6.2% more than in the corresponding period last year.As reported, from November 1 to November 19, Ukrzaliznytsia loaded more than 15 million tonnes of cargo, which is 6.2% more than in the corresponding period last year.
The third container train from China on a new route, which delivered 41 forty-foot containers with shoes, non-ferrous metal products, medical and pharmaceutical equipment, consumer goods and other combined cargo, arrived at the Kyiv-Lisky station.
The press service of Ukrzaliznytsia reported last week, the company has already received 17 trains from different regions of China. These trains run from Wuhan and Jinannan and carry 43 containers with various cargoes: magnesium sulfate, equipment, aluminum frames, disposable syringes, PET bottles and light industrial products.
Trains cover the distance of transportation, which is more than 9,000 km across the territory of four countries, in 15 days.
Ukrzaliznytsia will continue receiving trains from China according to a new logistics scheme with a further increase in their frequency.
“The introduction of new logistics schemes for the transportation of goods allows attracting additional cargo flows and opens up new opportunities for the users of transport services to deliver goods to their destination. This work is carried out together with the solution of pressing issues regarding tariff policy, technical re-equipment, improving the technology of the transportation process and services,” the company said.
Ukrzaliznytsia added that its branch Lisky center of transport service plans to continue active work on identifying new promising routes for container trains.
JSC Ukrzaliznytsia plans to repair 313 locomotives in 2021, having invested more than UAH 4 billion of capital investments, the company’s press service said on Wednesday, with reference to Ukrzaliznytsia board member Frantisek Bures.
Ukrzaliznytsia says that next year it is also planned to repair, modernize and build more than 23,500 new cars. In particular, to build 3,000 new cars, overhaul and modernize more than 20,500 cars.
Earlier, Director of the Cargo Traffic unit at JSC Ukrzaliznytsia Irakli Ezugbaia said that Ukrzaliznytsia intends to increase investments in rolling stock and infrastructure.
“So, if this year capital investments amount to UAH 4.8 billion, then next year we plan to invest UAH 25.8 billion, some UAH 28.4 billion in 2022, and some UAH 41.1 billion in 2023. Thus, we will be able to provide our customers with equal access to the infrastructure and not refuse any one along with the transportation of goods that can be placed at Ukrzaliznytsia,” he said.
Ukrzaliznytsia intends to increase investments in rolling stock and infrastructure, Head of the Freight Transportation division of Ukrzaliznytsia, Irakli Ezugbaya, has said.
“So, if this year capital investments will amount to UAH 4.8 billion, then next year we plan to invest UAH 25.8 billion, in 2022 some UAH 28.4 billion, and in 2023 some UAH 41.1 billion. Due to this, we will be able to provide our customers with equal access to the infrastructure and not refuse any of them along with the transportation of goods that can be placed at Ukrzaliznytsia,” he said in an interview with the Centre for Transport Strategies.
At the same time, Irakli said that Ukrzaliznytsia constantly needs to increase its operating profit.
“In 2020, EBITDA margin indicators are planned at 9.1%. By 2023, we want to increase these indicators to 30%. In my opinion, the cargo business unit should significantly improve its indicators in order to compensate for potential losses from other areas, including passenger transportation. Therefore, in order to reach 23% of EBITDA in 2021, we must reach at least 30% in the cargo direction,” he said.
As reported, Ukrzaliznytsia intends to provide UAH 4.1 billion in the company’s financial plan for 2021 for the overhaul of locomotives.
In 2019, Ukrzaliznytsia increased its net profit by about 14.7 times, to UAH 2.988 billion (UAH 203.85 million in 2018). EBITDA of Ukrzaliznytsia for 2019 increased by 6%, to UAH 17.3 billion compared to the results of last year.
JSC Ukrzaliznytsia is discussing the possibility of carrying out transit container traffic along the China-EU route through the territory of Ukraine, the operator will be Ukrzaliznytsia branch Lisky, the press service of Ukrzaliznytsia reported with reference to executive director of the branch Edvins Berzins.
The company, in particular, notes that negotiations are at the final stage on signing long-term service agreements with DHL, PKP Cargo Connect and BTLC Germany. The agreement with DHL provides for the transportation of containerized cargo throughout Ukraine with the provision of a range of turnkey services at the terminals of the Lisky branch.
Together with PKP Cargo Connect, container trains will be transported from/to Ukrainian railway stations at Polish stations with further transportation to recipients throughout the EU. The agreement with BTLC Germany provides for the transportation of goods en route to China – Ukraine/EU and in the opposite direction.
“Ukraine occupies a strategically important position on the transport routes between Europe and Asia. Previously, this potential was almost never used. Therefore, now one of the priorities of the management of Ukrzaliznytsia is to uncover the possibilities of the railway transport routes of Ukraine and, together with partners from the East and West, to establish a mutually beneficial system of international container transportation,” the press service quoted Berzins as saying.
Ukrzaliznytsia by the end of 2020 expects to see a loss of UAH 12-14 billion.
“My personal vision: we will end this year with a loss of UAH 12-14 billion,” Head of Ukrzaliznytsia JSC Volodymyr Zhmak said at a briefing in Kyiv on Thursday.
At the same time, he said that the company counts on the support of international financial institutions.
“We are counting on our partners from the financial sector, first of all, international financial institutions,” he added.
In January-June 2020, Ukrzaliznytsia saw a net loss of UAH 8.792 billion, while for the same period in 2019 its net profit amounted to UAH 1.065 billion. At the same time, Ukrzaliznytsia’s net income from the sale of products (goods and services) in January-June 2020 amounted to UAH 35.623 billion (a decrease of 19.42% compared to the same period in 2019).
