Business news from Ukraine

UKRZALIZNYTSIA MAKES ELECTRIFICATION OF 70 KM OF TRACKS IN 2021

JSC Ukrzaliznytsia in 2021 increased the rate of electrification of tracks by 23 times compared to the average annual electrification rate over the past eight years, to 70 km.
As reported on the company’s website, at the moment, work continues on the strategically important section of Kovel – Izov – State Border, railway workers have already electrified 43 km of the route.
“The implementation of the electrification project in this direction will have a huge positive result for the company and the country: from energy saving to reducing the cost of purchasing fuel and lubricants, from increasing the throughput of the site to simplifying the technology for organizing traffic,” Chairman of Ukrzaliznytsia management board Oleksandr Kamyshin said.
The company said that work on the Kovel – Izov – State Border section is taking place within the framework of the Big Construction program of President Volodymyr Zelensky.
It is expected that the electrification of the section will increase the capacity of the direction and, accordingly, reduce the time for transporting goods to the EU countries.
In addition, electrification will allow increasing the weight of freight trains from 4,600 tonnes to 5,500 tonnes, and to reduce the operating costs of the railway by UAH another 136.4 million per year and significantly reduce emissions into the atmosphere (up to 12,000 tonnes per year).
The Kovel – Izov – State Border section is located within Volyn region and is currently operated by diesel traction. The main freight traffic is export iron ore, which flows from enterprises in the Kryvy Rih area to metallurgical enterprises in Poland. The section is the most costly part of the route of this traffic flow.

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UKRZALIZNYTSIA TO START ELECTRIFICATION OF DOLYNSKA-MYKOLAIV-KOLOSIVKA RAIL SECTION IN MARCH 2019

PJSC Ukrzaliznytsia plans to start works to electrify the Dolynska-Mykolaiv-Kolosivka rail section in March 2019.
The company said that the ratification of the financial agreement between Ukraine and the European Investment Bank (EIB) under the Ukraine Railway Modernization Project by the Verkhovna Rada would allow launching an open tender to select a general contractor to electrify the Dolynska-Mykolaiv-Kolosivka rail section.
The company expects to use the first tranche at the end of May 2019. The minimum size of the tranche is EUR 5 million, and the total number of tranches will be up to 20, acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said.
The project provides for two phases of implementation: work on the Dolynska-Mykolaiv section (the operational length is 148 km) is scheduled from March 2019 to May 2023, and on the Mykolaiv-Kolosivka section (105 km) from June 2019 to October 2021.
As reported, the Verkhovna Rada has ratified a financial agreement (Ukraine Railway Modernization Project) between Ukraine and the EIB on the provision of a EUR 150 million loan to Ukraine, foreseeing funding of the modernization and expansion of the Dolynska-Mykolaiv-Kolosivka railway section.
In January 2018, the Cabinet of Ministers of Ukraine approved the project on the reconstruction of the Dolynska-Mykolaiv railway section with increased capacity of the Znamianka-Dolynska-Mykolaiv section.
On December 19, 2016 a financial agreement on the Ukraine Railway Modernization Project (modernization of the infrastructure of PJSC Ukrzaliznytsia) was signed with the EIB, which provides for a loan of EUR 150 million.

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