Business news from Ukraine

UKRAINIAN GRAIN FARMERS CANNOT TIMELY EXECUTE CONTRACTS FOR EXPORTS DUE TO LACK OF UKRZALIZNYTSIA’S LOCOMOTIVES

Ukrainian grain farmers cannot timely execute contracts for exports of products due to a shortage of locomotives at Ukrzaliznytsia, the Ukrainian Agribusiness Club has reported. “The main problem of PJSC Ukrzaliznytsia, which impedes the efficient transportation of grain, is a shortage of locomotives. Due to a lack of traction, wagons stand idle at stations and elevators, while the turnover of cars of Ukrzaliznytsia’s Transport Logistics Center has increased from five to 11 days over the last two years, private to 13 days,” the report says.
According to the association, delays in the transportation of grain crops lead to a breach of export contracts, while transportation rates are declining, and gross production is rising. According to the union, only 500 out of 2,500 Ukrzaliznytsia locomotives work, while the overhauls of many of them were carried out in the 1990s.
At the same time, the association noted an increase in the number of grain wagons in the country: about 11,500 cars are owned by Ukrzaliznytsia, about 10,000 are private.
According to the Ukrainian Agribusiness Club, it’s not worth expecting a speedy improvement in the situation with rail transportation because of a lack of funds at Ukrzaliznytsia for the purchase of locomotives in the near future.

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7 GENERAL ELECTRIC LOCOMOTIVES ARRIVE IN UKRAINE

Seven locomotives General Electric (GE) TE33AC Trident (Tryzub) arrived in Chornomorsk (Odesa region), and the arrival of the next batch is expected in two weeks, acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov has said. “Another seven GE diesel locomotives arrived in Chornomorsk at night. They left the United States about a month ago and in a few days they will be sent for installation of the remained equipment in Ukraine,” Kravtsov wrote on Tuesday on his Facebook page and posted a short video from the port.
According to Kravtsov, in November, eight GE Evolution locomotives will operate in the railway: “We plan to use them for transportation on southern routes.”
He expressed hope that Ukraine will be able to receive the first 30 diesel locomotives before the end of this year.
“We are waiting for the next batch in two weeks,” he added.
As reported, in the beginning of August General Electric Transportation sent the first of 30 locomotives GE TE33AC to Ukraine. On September 11, it arrived in Ukraine.
The framework agreement between Ukrzaliznytsia and GE envisages a 15-year partnership in updating and modernizing traction rolling stock, the first stage of which is the delivery of 30 new diesel locomotives GE TE33AC to Ukrzaliznytsia under leasing terms with a localization level of 10%.
GE Transportation and Kriukov Car Building Works early June signed an agreement on the localization of production of 30 locomotives TE33A of the Evolution series. It was planned that Ukrzaliznytsia will receive the first locomotives late 2018.

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GENERAL ELECTRIC EXPERTS WILL OFFER MELITOPOL DEPOT AS MAIN SERVICE BASE FOR THEIR LOCOMOTIVES

General Electric experts will recommend the management of Ukrzaliznytsia Melitopol locomotive depot of the regional branch Prydniprovska Railways as the main base for servicing GE locomotives. The GE employees made such conclusions after the examination and inspection of the depot, Ukrzaliznytsia reported on its website. “The General Electric representatives believe that Melitopol locomotive depot maximally meets the requirements of the company for the center for servicing TE33AC Trident diesel locomotives built for Ukraine,” the report says. During a visit to Melitopol depot, the General Electric representatives inspected the production facilities of the depots, familiarized with the technical equipment and capabilities of the structural unit, its personnel potential.
They also discussed a number of issues that need to be resolved: the allocation of individual warehouse and office space, the determination of the number of personnel for carrying out repairs and technical maintenance of traction rolling stock, employee training, the details of material and technical support, and so on.
As reported, in the beginning of August General Electric Transportation sent the first of 30 GE TE33AC locomotives to Ukraine. The framework agreement between Ukrzaliznytsia and GE envisages a 15-year partnership in updating and modernizing traction rolling stock, the first stage of which is the delivery to Ukrzaliznytsia under the terms of leasing of 30 new GE TE33AC diesel locomotives with a localization level of 10%.

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UKRAINE SEEKS TO START USING GENERAL ELECTRIC LOCOMOTIVES THIS AUTUMN

This autumn Ukraine seeks to start using first TE33A locomotives that would be produced for PJSC Ukrzaliznytsia under a cooperation agreement signed with U.S. General Electric (GE), Ukrainian Prime Minister Volodymyr Groysman has said. “This autumn, we are starting to get a new rolling stock – according to plans for joint production of General Electric. We lost a lot (of rolling stock) in the occupied territory. However, the company is involved, and things are moving,” the press service of the Cabinet of Ministers reported on Wednesday morning, citing Groysman.
The prime minister also drew attention to the fact that simultaneously with the renewal of assets, the state-owned company’s management is being renewed, shadow deals and manual control, which was observed in the past, is being eliminated.
“The billionaire company, Ukrzaliznytsia, was entangled in all sorts of schemes and knots. We begin to unwind, calculate enemies and bring the situation out of the state of decline,” Groysman said.
As reported, the framework agreement between Ukrzaliznytsia and GE envisages a 15-year partnership in updating and modernizing traction rolling stock, the first stage of which is the delivery to Ukrzaliznytsia under the terms of leasing of 30 new GE TE33AC diesel locomotives with a localization level of 10%.

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UKRZALIZNYTSIA, GENERAL ELECTRIC TO ANNOUNCE TENDER TO SERVICE LOCOMOTIVES

Public joint-stock company Ukrzaliznytsia and General Electric plan to announce an official tender to service locomotives under the cooperation contract.
According to a posting on the website of the Ukrainian company, acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov at a meeting with President and CEO General Electric Transportation Rafael Santana on Thursday discussed some urgent issues of cooperation in upgrade and modernization of the locomotive fleet of Ukrzaliznytsia under the partnership contract signed early this year.
Ukrzaliznytsia and General Electric are preparing for the announcement of an official tender to service TE33A Evolution Series locomotives that will be delivered to Ukrzaliznytsia under the cooperation contract, the company said.
Ukrzaliznytsia also said that during the negotiations General Electric presented options for financing of next phases for the successful implementation of the long-term cooperation contract.

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GE JOINTLY WITH KRIUKOV CAR BUILDING WORKS TO SUPPLY 30 LOCOMOTIVES TO UKRAINIAN RAILWAYS

General Electric Transportation with 10% participation of Kriukov Car Building Works (KCBW) at the end of 2018 will start delivering 30 TE33A locomotives of Evolution series to Ukrzaliznytsia in line with the earlier approved program of localization of locomotive production in Ukraine, acting Ukrzaliznytsia Board Chairman Yevhen Kravtsov wrote on his Facebook page on Tuesday. “Ukrzaliznytsia jointly with GE Transportation gives green light to the program of localization of locomotive production in Ukraine. Personally for me this is a large victory and the landmark for Ukrainian railways and the entire sector. Localization at the initial stages was the key principal moment during the negotiations with GE. I can say that neither in India nor in Kazakhstan the similar contract does not envisages the localization from the first sample. First TE33A locomotives of the Evolution series will be made with participation of KCBW,” he said.
Kravtsov said that for the first locomotives the Ukrainian contract provides for 10% of localization. Later the locomotives will be consisted of at least 40% of Ukrainian spare parts.
“Now General Electric is selecting the production facilities among Ukrainian enterprises. We also plan to create a center for servicing and modernizing the operating locomotive fleet,” Kravtsov wrote.
He said that a batch of locomotives, which General Electric will deliver in cooperation with KCBW is the largest one during Ukraine’s independence. “The final stage of locomotive production for Ukrzaliznytsia has started in Pennsylvania. At the end of 2018 we would receive first diesel locomotives adapted to our climate, environment-friendly, effective in servicing, comfortable and safe for locomotive crews,” Kravtsov said.

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