Business news from Ukraine

UKRAINE’S LARGEST AIRPORT BORYSPIL INCREASES PASSENGER TRAFFIC TO 11.67 MLN IN JAN-NOV

Boryspil International Airport (Kyiv), the country’s largest airport, in the first nine months of 2018 increased passenger traffic by 19%, to 11.67 million people against 9.768 million in the same period of 2017, the press service of the airport has told Interfax-Ukraine. In November, the airport served 994,200 passengers, which is 33% more than in November 2017.
Some 8.936 million passengers of Boryspil airport travelled on regular flights in the 11 months, while 2.731 million people chose irregular flights.
The share of transfer in the total passenger traffic of the airport in January-November decreased to 27%, while over the 11 months of 2017 it was 28%.
At the same time, the number of transfer passengers increased from 2.72 million last year to 3.192 million in the 11 months of 2018.

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EXPRESS TRAIN FROM KYIV TO BORYSPIL AIRPORT IS LAUNCHED

JSC Ukrzaliznytsia will send the round-the-clock express train on the Kyiv-Passazhyrsky-Darnytsia-Boryspil-Airport route to make its first trip. “The regular train trips are to start at 13:00,” the company’s press service reported. Four rail buses produced by Polish Pesa Bydgoszcz SA with a capacity of up to 120 passengers and with a baggage zone, upgraded by Ukrzaliznytsia, will run on the route. Tickets costing UAH 80 can be purchased by cash at two cash desks at the Central and South Railway Stations, by noncash at four self-service terminals installed in the concourse over the fourteenth track. Also, passengers can pay for travel directly in the trains using a technology similar to the Kyiv subway.
The cost of the project, according to the press service, amounted to UAH 480 million.
“In the course of the implementation of the project, about 4 km of track was added to the existing railway infrastructure, a 272 meter long overpass was built over the M03 Kyiv-Kharkiv highway. Two passenger platforms with pavilions near the airport and an indoor pedestrian crossing from the platforms to Terminal D of the Boryspil airport were built, Ukrzaliznytsia said on its website.
Under the project two waiting rooms with air conditioning, TV, sockets, Wi-Fi and a children’s area were also built. Passengers can enter the indicated zones is open if they have a ticket for the express train. As reported, on November 29, Ukrzaliznytsia announced the timetable of the express train to the Boryspil International Airport with 30 trips in each direction.
Ukrzaliznytsia plans to transport about 3.8 million passengers along the route Kyiv-Boryspil International Airport in 2019 and is negotiating the electrification of the section of the route from Kyiv to the Boryspil International Airport.

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STATE-OWNED BORYSPIL AIRPORT PLANS TO RECONSTRUCT SECOND RUNWAY

State-owned enterprise (SOE) Boryspil International Airport plans to start reconstruction of maneuvering area No. 2 in 2020 under a memorandum signed with Chia Communications Construction Company (CCCC) and relaunch it in 2021.
“The reconstruction works will be paid for using the loan and partly at the expense of the company’s own funds. The Chinese Eximbank can issue a government-secured loan. Financing rates with government guarantees are much lower than commercial ones and do not require additional expenses from the airport,” Commercial Director of the airport Heorhiy Zubko told Interfax- Ukraine.
He said that the Chinese company, at its own expense, prepared and submitted a pre-feasibility study of the project to the airport under the memorandum signed by the airport and CCCC. According to Zubko, the airport has already prepared its comments on the draft pre-feasibility study, which CCCC should resolve before the end of the year, after which negotiations on financing will be held with the bank.
“The procurement procedure was not carried out and the Boryspil airport did not spend the company’s money and the budget,” he said, adding that the construction proposal had been put forward by the Chinese side.
Zubko does not report on the final cost of the reconstruction project, since it will be known only at the final design stage.

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UKRZALIZNYTSIA TO ELECTRIFY TRACK SECTION FROM KYIV TO BORYSPIL AIRPORT

PJSC Ukrzaliznytsia is holding talks about the electrification of the track section from Kyiv to the Boryspil International Airport, acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said on the sidelines of the event devoted to the final stage of the selection of projects at Future of Mobility Lab.UZ edition on October 29.
According to him, in case of passenger traffic growth, the company plans to add a diesel train produced by Kriukov Car Building Works on the Central Railway Station – Boryspil Airport route.
“Depending on the demand in the project launch process, we are planning to increase the number of trains and cars of trains. We have an agreement with the KCBW [Kriukov Car Building Works] for the supply of diesel trains. Perhaps they will be exploited in this section in the future, if there is a demand,” he said.
According to Kravtsov, the project’s payback period is 9-10 years, and the planned load during the first year should be at least 80% of the capacity.
“Now we are coordinating the schedule, since after the launch of this express train, the section between Darnytsia and Boryspil will be one of the most stressful in Ukraine, especially considering the large number of passengers, including commuter traffic. We plan that in the first stages of launching the frequency in the peak hours will be about 30-40 minutes, in non-peak hours – 40 minutes or an hour and a half,” Kravtsov said.
He also said that now Ukrzaliznytsia is discussing the need for night trains with the airport – the need for such trips is being discussed, taking into account the small number of night flights from the airport.
The train will be launched by the end of November, but there is no exact date yet, since there are a number of remarks from Prime Minister Volodymyr Groysman, which should be taken into account, Kravtsov said.
He also said that negotiations are now being completed with the State Aviation Service of Ukraine and UkSATSE regarding the electrification of the section from Kyiv to Boryspil.
“As soon as this is done, it will simplify the issue of using various types of trains on this route,” he said.

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UKRZALIZNYTSIA TO LAUNCH EXPRESS TRAIN TO BORYSPIL AIRPORT

PJSC Ukrzaliznytsia in November 2018 will launch an express train to the Boryspil international airport (Kyiv region).
“In February was the project, in May – the start of works, and in October – a test launch of the train. In November it will be the launch of the express train,” Prime Minister of Ukraine Volodymyr Groysman said on his Twitter account on Thursday.
The prime minister said that the cost of the project was about UAH 580 million, recalling that the estimated cost of the “infamous Air Express” in 2010 amounted to UAH 3.2 billion.
Groysman also pointed out the convenience of creating a covered gallery between the airport terminal and express platform.
As reported, Transportation on the Kyiv city-the Boryspil international airport route could reach 3.8 million passengers in 2019, according to Ukrzaliznytsia. The company expects that with a ticket price of UAH 80 the payback period for the project will near 10 years. Ukrzaliznytsia does not deny the scenario of increasing the cost of travel, depending on the demand for the service, as well as the factors that negatively affect its production cost for the company.
The estimated travel time will be 35-40 minutes.

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BORYSPIL INTERNATIONAL AIRPORT PLANS TO BUILD CARGO TERMINAL NEXT YEAR EVEN IF NO INVESTOR FOUND

State-owned enterprise (SOE) Boryspil International Airport plans to start building a cargo terminal in 2019 even if no investor is found, Director Pavlo Riabikin said at the Global Outlook 2018 conference organized by the European Business Association (EBA) in Kyivy. According to him, the existing cargo infrastructure of the Boryspil airport was formed in the late 1960s – early 1970s and it was designed to handle about 40 tonnes of cargo per day. “Today we process 110-120 tonnes of cargo a day, which is very problematic with the existing infrastructure,” Riabikin said.
According to him, in the past four years there has been a lot of talk about attracting investors and creating an investment project for the construction of a cargo terminal at the airport, but due to the fact that the state has few mechanisms for attracting investors to infrastructure projects, this has not been realized.
“Next year, if the ministry [the Infrastructure Ministry] fails to attract an investor, we plan to build a new cargo terminal based on existing capacities, but we will implement it using own forces. To be honest, the volumes of investment that we need in coming years make the implementation of the cargo terminal very difficult,” the head of the enterprise said.
Riabikin said that the project for the construction of the cargo terminal is not a profile for the airport, since the company is oriented, first of all, to passenger transportation.
“I think we are able to implement it [the construction of the cargo terminal] during a year and a half. The only question is whether we have the funds or the opportunity to attract them,” Riabikin said.

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