Business news from Ukraine

Business news from Ukraine

STATE-RUN UKRZALIZNYTSIA ENDING NEGOTIATIONS ON SIGNING CONTRACTS ON CONTAINER SHIPMENTS TO EUROPE, ASIA

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 TO END THIS YEAR WITH LOSSES OF UAH 12-14 BLN

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).

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HEAD POF STATE-RUN UKRZALIZNYTSIA SEES NO NEED FOR FURTHER PURCHASE OF GENERAL ELECTRIC LOCOMOTIVES

Head of JSC Ukrzaliznytsia Volodymyr Zhmak does not see the need for further purchase of diesel locomotives of the U.S. General Electric.
“As for cooperation with General Electric, today I do not see the need for further purchase of General Electric diesel locomotives. Our goal is to switch to electric locomotives, since it is much more cost efficient,” he said at a press conference on Thursday.
He said that Ukrzaliznytsia has eliminated the shortage of locomotives. “We have the first small achievements. For almost one month since the start of work, we have managed to eliminate the shortage of locomotives,” he said.
According to him, today, for the first time in a long time, Ukrzaliznytsia satisfies all transportation needs.
“There is not a single request for transportation that Ukrzaliznytsia did not satisfy. The market saw that we can transport. We can ship everything and do it quickly,” he added.

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UKRZALIZNYTSIA INCREASES CARGO TRANSPORTATION BY 3.4% IN Q3

JSC Ukrzaliznytsia transported almost 80 million tonnes of cargo in July-September 2020, which is 2.7 million tonnes more than in the same period.
According to the press service of Ukrzaliznytsia on Thursday, October 22, transport volumes in domestic traffic increased by 11.3%, and in export by 1.8% for the specified period.
At the same time, it is noted that in the third quarter, the transportation of mineral construction materials, scrap ferrous metals, cement, and iron and manganese ores increased.
“The new tariff policy, which is now being implemented, will make rail freight transportation even more attractive for a wide range of customers. In particular, the company has already developed a new technology for the transportation of goods by block trains: three methods of calculating the tariff, the final cost depends on the volume of cargo and distance. The customer will be able to plan the turnover and speed of transportation,” Ukrzaliznytsia reported.

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UKRZALIZNYTSIA LAUNCHES TWO ADDITIONAL TRAINS FROM ODESA TO KYIV, LVIV

JSC Ukrzaliznytsia for the upcoming Independence Day of Ukraine will launch additional high-speed trains No. 224/223 Odesa-Kyiv and No. 168/167 Lviv-Odesa.
According to the company’s press service, the trains will be launched due to an increased demand for passenger transportation services on holidays.
Train No. 224/223 will transport passengers between Odesa and Kyiv on August 22 and 24.
Train No. 168/167 will transport passengers between Lviv and Odesa on August 22, 24, 26, 28 and 30.

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UKRAINIAN AUTHORITIES ALLOW PRIVATIZATION OF NAFTOGAZ, UKRZALIZNYTSIA, UKRPOSHTA

The Cabinet of Ministers on Wednesday intends to consider a bill on the list of 188 companies prohibited from privatization, according to the agenda of the government meeting. According to the text of the bill, the government allows the privatization of up to 50% of the shares of Naftogaz, Ukrzaliznytsia and Ukrposhta, but proposes to retain the state’s 100% share of corporate rights in National Nuclear Generating Company Energoatom, PrJSC Ukrhydroenergo, NEC Ukrenergo , Skhidny Ore Mining and Processing Plant (VostGOK), and Ukrainian Sea Ports Authority (USPA).
It is also proposed to include the SE Market Operator and the SE Guaranteed Buyer, created by the Cabinet of Ministers in 2019 in order to ensure the operation of the new electricity market, in the list of objects completely prohibited for privatization.
In addition, it is proposed to include in the specified list the state-owned enterprise Document, Ukraina Printing Plant for the production of securities, Kyiv offset factory, and Pivdenne (Yuzhne) Design Bureau.

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