The company that developed the electronic ticket sale system of Ukrzaliznytsia – Unit LLC – has accused a group of officials of Ukrzaliznytsia of pressing on it an asked the company’s head to attract profile specialists and law enforcement agencies to settle the issue. The corresponding open letter to the head of Ukrzaliznytsia Yevhen Kravtsov regarding the situation around the Electronic Ticket system has been published on the website of Unit. “To date, a group of officials of Ukrzaliznytsia in collusion with a private company, is taking measures to remove the system from Ukrzaliznytsia’s control and then transfer it to the management of a private company. For achieving the goal the officials of the Main Computer Center of Ukrzaliznytsia artificially create interruptions in the work of the system, and in the future the system can be forcibly stopped by these persons in order to accuse the system developer, Unit LLC, thereby justifying itself,” the company said in the letter.
According to the company, such destructive actions of the officials, which can lead to a complete stop of the system, undermine the work of Ukrzaliznytsia.
The system developer calls on Kravtsov to intervene in the situation in order to prevent possible interruptions and shutdown of the system, which will lead to a collapse in ticket sales. Unit demands to organize a joint meeting with the involvement of relevant specialists and relevant law enforcement agencies.
PRESSING, SERVICE, TICKET SALES, UKRZALIZNYTSIA'S, UNIT ACCUSES
The Cabinet of Ministers of Ukraine with resolution No. 133 dated March 6, 2019 approved the consolidated financial plan of JSC Ukrzaliznytsia, taking into account the indexation of cargo transportation tariffs by 14.2% from April 1, 2019, the automated indexation of regulated tariffs for transportation of cargo and related services from May 1 by 2.5%, from August by 5% and from November 1 by 7.5%.
According to an explanatory note to the financial plan posted on the website of Ukrzaliznytsia, it also provides for quarterly indexation of prices for unregulated goods (labor and services) by the industrial price index, which will enable the company to hedge currency risks in its loan portfolio. Also, the unification of tariff classes is taken into account in the calculation of income from freight traffic in 2019.
A total of 331 million tonnes of cargo is planned to be transported in 2019, which is 4.8% less than planned for 2018. As a result, revenues from the transportation of goods are projected at UAH 83.991 billion, which is UAH 12 billion (or 16.7%) more than in the 2018 plan.
In 2019, Ukrzaliznytsia plans to transport 201 million passengers, which corresponds to the planned figures for 2018. Revenues from passenger transportation are planned at UAH 10.14 billion, which is UAH 1.64 billion (or 19.3%) more than the plan for 2018.
An increase in tariffs for these services from April 1, by an average of 13-21%, depending on the category of train and the type of car, will contributed to the growth of income from passenger transportation will ensure.
Expenses on the implementation of transportation services, which make up 82.5% of the expenditure part of the financial plan, are planned in the amount of UAH 84.68 billion, which is UAH 9.49 billion (or 12.6%) more than the plan for 2018. Their increase is expected thanks to the growth in traffic volumes, higher prices for material resources, and an increase in labor costs.
In addition, the financial plan takes into account the increase in land tax expenses in connection with the abolition of 0.25% privilege for the use of land parcels.
Also, the draft financial plan for 2019 envisages borrowings in the amount of UAH 49.4 billion, and the payment of loans in the amount of UAH 44.4 billion. As of January 1, 2019, the balance of financial obligations is expected to be UAH 37.3 billion (with the exchange rate of UAH 27.70/$1), at the end of the year the balance is planned to be UAH 43.9 billion (with the exchange rate of UAH 29.40/$1).
“The increase in the loan portfolio of JSC Ukrzaliznytsia at the end of 2019 is influenced by the exchange rate difference between the U.S. dollar and hryvnia at the beginning and the end of 2019: a rise by UAH 1.70,” Ukrzaliznytsia said in the document.
In addition, income from writing off property of Ukrzaliznytsia is planned in the amount of UAH 2.62 billion.
The company’s net profit in 2019 is projected at UAH 4.52 billion, which is UAH 3.81 billion (six times) more than the plan for 2018.
“The growth of the company’s profitability is thanks, first of all, to the introduction of the procedure for writing off property, the indexation of tariffs for transportation and cost optimization,” the company said in the explanatory note to the document.
In addition, according to the financial plan, Ukrzaliznytsia in 2019 intends to increase earnings before interest, taxes, depreciation and amortization (EBITDA) by 25.4%, to UAH 25.048 billion, EBITDA margin by 1.8 percentage points compared with the plan for 2018.
The draft plan for 2019 provides for capital investments in the amount of UAH 18.02 billion. In particular, it is planned to purchase and manufacture the rolling stock for a total amount of UAH 5.08 billion – 2,153 railcar cars (including 2,150 gondola cars at the expense of the EBRD), and also to purchase 15 main-line diesel freight locomotives from General Electric for UAH 1.57 billion in financial leasing.
