In January-June 2024, Ukrzaliznytsia (UZ) increased its revenue by 19.51% compared to the same period in 2023 to UAH 53.9 billion, while decreasing its profit by 33.2% to UAH 3.17 billion, according to its interim condensed consolidated unaudited financial statements as of June 30, 2024.
According to the report for 6 months. 2024 on the official website of UZ, revenues from freight transportation in January-June increased by 17.8% to UAH 43.01 billion. At the same time, revenues from passenger and baggage transportation grew even more significantly by 22.15% to UAH 5.35 billion.
At the same time, UZ personnel costs in January-June 2024 increased by 24.75% to UAH 24.72 billion compared to the same period in 2023. Electricity costs increased by 56.2% to UAH 7.78 billion. In contrast, fuel costs decreased by 14.92% to UAH 4.62 billion.
Net foreign exchange loss increased 26.2 times to UAH 2.87 billion in the period under review.
Profit before tax decreased by 35.7% to UAH 3.25 billion.
As of June 30, 2024, UZ was involved in litigation with the Ukrainian fiscal authorities regarding the accrual of additional tax liabilities for income tax, VAT and other taxes in the amount of UAH 1.1 billion, including additional fines and penalties. As of June 30, 2024, the group’s potential loss from third-party claims in other litigation and arbitration proceedings amounted to UAH 1.3 billion, compared to UAH 1.63 billion in 2023, the report says.
The UZ group includes the parent company JSC Ukrainian Railways, PJSC Dnipropetrovs’k Diesel Locomotive Repair Plant, PJSC Zaporizhzhya Electric Locomotive Repair Plant, PJSC Lviv Locomotive Repair Plant, PJSC Kyiv Electric Car Repair Plant, PrJSC “Korosten Reinforced Concrete Sleepers Plant”, PrJSC “Hnivan Special Reinforced Concrete Plant”, PrJSC “Kyiv Electrotechnical Plant ‘Transsignal’, LLC ‘UZ Cargo Wagon’, LLC ‘Zbut Energy Ltd’ (together with subsidiaries), 65.62% of PrJSC ‘Tast-Garantia’, 50.004% of PrJSC IC ‘Inter-Poly’ Ukraine, 100% of UZ Cargo Poland sp. z.o.o Poland.
In 2024, Ukrzaliznytsia JSC (UZ) repaired 24,233 thousand freight cars at its own production facilities, which is 18.7%, or 3.82 thousand, more than a year earlier.
“During the year, the railroad’s car repairers carried out depot and overhaul repairs of virtually all types of freight cars. Most of all, gondola cars, platforms of universal and hopper cement cars were renovated,” UZ said on its Facebook page.
According to the report, 48% of all repaired railcars belong to the private fleet.
In 2024, Ukrzaliznytsia JSC (UZ) increased the volume of cargo transportation in containers by rail by 28% compared to the previous year – up to 258185 twenty-foot equivalent units (TEUs), said Valery Tkachev, Deputy Director of the Commercial Department.
According to him, 162,725 TEUs (63%) were transported on export routes, imports amounted to 55,689 TEUs (21.3%), domestic transportation – 38,681 TEUs (15%), and transit – 1,190 TEUs (0.5%).
The leader among cargoes in terms of containerized transportation was grain cargo, which accounted for 46% of the total volume of transportation, ferrous metals – 20%, oil cake – 9%, oil – 8%, sugar – 4%, synthetic resins – 3.7% and starch and molasses products – 3.6%.
Tkachev noted that one of the main trends in intermodal transportation through Ukraine in 2024 was the absence of a seasonal/peak increase in cargo transportation in November-December, although this period is usually characterized by a seasonal increase in transportation.
According to the UZ representative, the possible reasons for this phenomenon were the low cost of using grain cars – UAH 200-300 per day, which prompted farmers to return to using this type of cargo transportation. Also, due to the reopening of seaports, grain exports have been reoriented – 86-92% of grain is exported through seaports, and grain is transported to ports in grain wagons.
The reduction in the cost of using grain wagons also led to a decrease in the volume of grain cargo transportation in containers in the second half of 2024.
Tkachev also added that the share of rolling stock used by Liski, in particular, fitting platforms, decreased by 24%.
In 2024, Ukrzaliznytsia (UZ) increased the volume of freight transportation by 17.9% year-on-year to 174.9 million tons.
“At the end of 2024, 174.9 million tons were transported by rail in Ukraine, which is 26.5 million tons, or 17.9%, more than last year (2023 – IF-U),” UZ said in an analytical note.
It is reported that the opportunity to increase the volume of rail transportation exists thanks to the Ukrainian sea corridor. The bulk of the cargo traffic is made up of products of farmers and metallurgists transported for export.
Exports were the main driver of rail transportation in 2024, with a share of 48% in total freight traffic, compared to only 38% in 2023. Import cargo transportation volumes in 2024 increased by 40.9% compared to 2023 to 9.63 million tons. Domestic transportation decreased by 5.5% to 80.2 million tons. While in 2023 the share of domestic transportation in total cargo traffic was 57%, in 2024 it decreased to 46%.
In total, in 2024, UZ transported 84.67 million tons in the export direction, which is 51.2% more than in 2023. The largest volume of cargo grains was transported – 34.13 million tons (40% of the volume transported for export), iron and manganese ore – 33.00 million tons (39%), and ferrous metals – 5.17 million tons (6%).
In 2024, 29.2 million tons of grain cargo (86%) was transported to ports, which is twice as much as in 2023. Only 4.9 mln tonnes of grain were transported via land border crossings, which is 41.6% less than in 2023.
In general, the volume of transportation through land border crossings in 2024 decreased by 8.6% compared to 2023, to 30.9 million tons or 37% of the volume of export transportation of all types of cargo. “UZ has 19 railway border crossings, of which 15 are operational.
The volume of transportation to ports in 2024 increased by 2.4 times compared to 2023 to 53.76 million tons. In total cargo exports, their share in 2024 was 63%.
According to the results of 2024, the leading positions in terms of cargo exports are held by the stations: “Chornomorsk (17%), Berehove (14%), Odesa Port (13%), Chornomorsk Port (12%), Izov (11%), Chop (7%), Uzhhorod (6%), and Izmail (4%).
Earlier it was reported that the volume of cargo transportation by UZ in the first 11 months of 2024 increased by 19.4% to 160.9 million tons.
In cooperation with the Ministry of Defense and the Armed Forces of Ukraine, Ukrzaliznytsia JSC has produced several more medical evacuation cars equipped as a real mobile hospital, the press service of the Armed Forces Medical Command reports.
“Qualified and timely assistance at all stages of medical evacuation saves our defenders who need it every day,” said Major General Anatoliy Kazmirchuk, Commander of the Medical Forces of the Armed Forces of Ukraine.
He expressed gratitude to all involved for their cooperation in providing quality medical care.
As noted, trains with such cars are used to evacuate seriously wounded servicemen.
“TAS Dneprovagonmash (DVM, Kamianske, Dnipro region) will supply more than 400 freight cars (gondola cars and platform cars) to Ukrzaliznytsia and Lithuanian Railways by the end of the first half of 2025 following the results of the tenders won in November-2024, the company reports on its Facebook page.
“The company started the winter production season by signing two major contracts with Ukrzaliznytsia and Lithuanian Railways,” the company said in a statement.
DVM clarifies that gondola cars of the 12-4106 model will be manufactured for Lithuanian partners, and a new development of the plant – 40-foot platform cars for large-tonnage containers of the 13-4155 model – will be delivered to UZ.
As reported, the Lithuanian rail freight operator LTG Cargo (part of Lithuanian Railways) will purchase 200 gondola cars for bulk cargo transportation from DVM for EUR 12.7 million. The first gondola cars are expected to be delivered in February-April 2025.
For its part, according to Prozorro, on December 3, TAS Dniprovagonmash and Ukrzaliznytsia signed a contract for the supply of 252 units of 40-foot fitting platform cars by June 30, 2025, for UAH 707.011 million (including VAT).
The contract provides for a 50% advance payment within 20 calendar days from the date of invoice.
In addition to TAS Dneprovagonmash, the Research and Mechanical Plant Karpaty participated in the tender for the supply of platform cars to UZ, with a bid of UAH 589.680 million against UAH 589.176 million from DVM, for an expected purchase price of UAH 608.58 million (all excluding VAT).
According to the State Railways Administration, the new platform cars have a tare weight of 20.5 tons and a carrying capacity of 73.5 tons, which “will guarantee the transportation of maximum cargo volumes compared to analogous cars available on the market.”
In addition, the platforms will be able to run on the EU rail network.
“TAS Dneprovagonmash is controlled by the TAS financial and industrial group of businessman Serhiy Tigipko. The plant, which has the capacity to produce 9,000 railcars a year, produced 378 freight cars in 2023, down 34.5% from 2022.
In January-September, the company posted a consolidated net profit of UAH 84.08 million, up 6% compared to the same period in 2023, while consolidated net income increased by 62.8% to UAH 1.61 billion.
