Ukrzaliznytsia (Kyiv) has saved energy resources worth more than $6 million (UAH 165 million) since the beginning of 2019 thanks to the implementation of the energy and resource saving program for railway transport for 2019-2020 and the purchase of modern rolling stock.
According to the press service of the company, in particular, electricity consumption in the first quarter of 2019 was reduced by almost 30 million kWh, diesel fuel by about 4,000 tonnes, natural gas by more than 400,000 cubic meters.
“Thanks to the acquisition and commissioning of General Electric locomotives, over the five months some 1,970 tonnes of diesel fuel was saved, which reduced the cost of purchasing fuel by almost UAH 58 million. Thanks to the elimination of energy intensive train speed limits, 108 tonnes of diesel fuel worth UAH 3 million and 3,574 kWh of electricity worth almost UAH 7.2 million were saved,” Ukrzaliznytsia said.
In addition, according to the company, energy saving was also promoted by the work of traction energy laboratory wagons, which made 243 research trips.
Ukrzaliznytsia in the summer season daily transports around 141,000 passengers, which is over 20% more than this spring, the company has reported on its website.
“We are making every effort to provide passengers with the required number of seats in trains and proper service. For the period of peak summer traffic, 32 additional trains have been assigned. Thus, at present, 147 trains run daily in the country,” Ukrzaliznytsia Board Chairman Yevhen Kravtsov said.
At the same time, according to him, out of 2,864 cars involved in transportation, 1,304 are equipped with air conditioning systems.
“We also hope that this year the changes would be made to the budget, the state will allocate funds for the renewal of the passenger sector,” the head of Ukrzaliznytsia said.
Ukrzaliznytsia (Kyiv) has approved a concept of creating Station Company branch using a model of Germany’s Deutsche Bahn, Director for Strategic Development and Investment Policy at Ukrzaliznytsia Anton Sabolevsky has said in an interview with the Magistral news center.
He said that the implementation of the roadmap for the establishment of the branch will begin by the end of 2019.
“Our goal is to improve the station management system, to increase the efficiency of their activities, including by minimizing duplicate functions. The main goals include reducing financial costs,” Sabolevsky said.
At the same time, he recalled that the negative financial performance of the stations of the Passenger Company branch of JSC Ukrzaliznytsia in 2018 amounted to UAH 405 million.
The reorganization will take place in three stages. First, stations, which are now managed by the Passenger Company will be transferred to the new branch. Next, first-third class facilities of regional branches will be transferred in stages (in total, 106 stations at the first stage). Then the turn of fourth-fifth class facilities (around 1,200) will come. Subsequently, the flag stations will join them. There are almost 2,300 of them in Ukrzaliznytsia, Sabolevsky said, explaining the action plan for the near future.
According to him, the staff will also be transferred to the new branch.
JSC Ukrzaliznytsia has launched a new regular container train from the station Nyzhniodniprovsk-Vuzol station to Slawkow (Poland).
According to a report on Ukrzaliznytsia’s website, this train will collect containers from the Zaporizhia, Mariupol-Sortuvalny and Nikopol stations every Saturday.
“The direct container train, which follows a strict schedule without maneuvering operations on the way and with an accelerated border crossing technology, is a year-round all-weather alternative to road transportation,” Ukrzaliznytsia Head Yevhen Kravtsov commented on the launch of the train.
According to the state railway carrier, this is already the 19th container train, which will run on an ongoing basis, eight of which are transit trains.
“Now we are considering the possibility of organizing new container trains on the route Lithuania-Ukraine-Lithuania,” the expert said.
The regional branch Prydniprovska Railways of JSC Ukrzaliznytsia has selected Transportation Ukraine LLC to procure spare parts to U.S. General Electric locomotives for the total amount of UAH 3.12 million.
According to a report in the ProZorro e-procurement system, the deal was signed using negotiations due to the absence of competition among suppliers.
The subject of the deal is eight types of spare parts to General Electric TE33AS locomotives in the amount of 864 units. The term of the delivery is before December 31, 2019.
Transportation Ukraine LLC with a charter capital of UAH 28.1 million was registered in July 2018 in Kyiv. The founder is Transportation Systems Holdings Inc. (the United States). Gokhan Bayhan, GE Transportation’s General Manager for Russia/CIS, Europe, Middle East & North Africa, is the head of the company.
As reported, Ukrzaliznytsia has completed the first stage of the strategic cooperation with General Electric on supplies of locomotives.
JSC Ukrzaliznytsia has paid off the first part of loan participation notes (LPN, eurobonds) in the amount of $150 million and paid the coupon on them, the company has reported on its website.
Ukrzaliznytsia Board Chairman Yevhen Kravtsov said that a loan for refinancing of the debt was raised on the domestic market. Oschadbank and the State Agency for Infrastructure Projects of Ukraine provided the funds.
“The funds were borrowed in the national and foreign currencies, and the currency-pegged liabilities were met. This additionally cut the potential risks for seeing exchange rate losses,” Kravtsov said.
He said that the payment on the bonds in due time again confirms support of the railway sector by the state and financial stability of Ukrzaliznytsia. It also shows to creditors that the state and company have a responsible attitude to servicing own debts.
As reported, Ukrzaliznytsia in May 2013 placed its debut $500 million eurobond issue with a maturity period of five years through the specially created company Shortline Plc.
Eurobonds of Ukrzaliznytsia, together with the securities of Oschadbank and Ukreximbank, were included in the restructuring of the external sovereign and government guaranteed debt initiated by the Ministry of Finance of Ukraine after the IMF approved a new four-year extended fund facility for Ukraine for $17.5 billion.
In March 2016, Ukrzaliznytsia restructured its eurobonds, prolonging the maturity until September 15, 2021 and raising the interest rate from 9.5% to 9.875% per annum. Also, the repayment schedule for the principal loan amount was changed: 60% should be paid in 2019, 20% in 2020 and 20% in 2021.
At the end of 2018, the supervisory board of Ukrzaliznytsia, together with the Ministry of Infrastructure and the Verkhovna Rada Committee on Transport, stated the need to restructure Ukrzaliznytsia’s debt obligations in order to increase the borrowings pegged to the national currency.
In April 2018, Ukrzaliznytsia announced that it was considering the possibility of implementing a new issue of eurobonds pegged to the hryvnia in the amount of UAH 500 million to UAH 1 billion for a period of three to five years before the end of this year, and also received coordination by the ministries to issue domestic bonds with a total amount of UAH 2 billion.
