Business news from Ukraine

UKRZALIZNYTSIA DISCUSSING WITH U.S. PARTNERS SUPPLY OF ADDITIONAL BATCH OF DIESEL LOCOMOTIVES

JSC Ukrzaliznytsia is discussing with its U.S. partners an agreement for the supply of an additional batch of diesel locomotives, Chairman of the board of the company Ivan Yuryk has said.
“I think that we will move along several parallel paths to modernize diesel traction. Both the modernization of the existing ones and the purchase of a small batch of new diesel locomotives are planned. We are now discussing with our U.S. partners an additional batch of up to 40 new diesel locomotives. I hope we will come to signing by the end of the year,” he said.
Yuryk also said that the company has also begun the process of purchasing new electric locomotives up to 200 units of various types of electric traction.
“Now we are holding an open tender. I hope that by the end of the year there will also be an answer who will become our partner in the construction and acquisition of these locomotives. The task of our company and the government is a large percentage of localization so that we launch the economy inside the country,” the chairman of Ukrzaliznytsia said.

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ARCELORMITTAL INVESTS UAH 320 MLN IN UKRAINE IN 2018-2019 TO RESTORE LOCOMOTIVES

PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) in 2018-2019 spent about UAH 320 million on the program to restore 27 locomotives.
According to a company press release, domestic and foreign analogues were used instead of Russian components during the overhaul of locomotives, thereby neutralizing Russian sanctions regarding the ban on the supply of spare parts and engines for diesel locomotives to Ukraine.
According to the press service, the plant has one of the largest railway fleets in the metallurgical complex: 172 locomotives (126 for servicing metallurgical production, 46 for mining). A few years ago, the company adopted an import substitution program. One of the main partners was Mykolaiv Diesel Locomotive Repair Plant, which established production cooperation with a number of Ukrainian and foreign manufacturers of various railways equipment.
Thanks to joint developments, Mykolaiv plant started installing diesel engines of well-known world companies, namely U.S.-based Cummins, UK-Belgian ABC Corporation, and others, on locomotives. In addition, the latest Heinzmann engine control systems (Germany), a rotary vane compressor jointly with the Italian company Mattei, a modern traction unit of alternating current (Electrotyazhmash), a microprocessor-based locomotive control system, etc. were installed on the machines.
Thanks to the measures taken, the plant in 2018–2019 got the opportunity to restore 11 diesel locomotives, in particular with the replacement of engines and deep modernization. In addition, 16 more cars were repaired on the basis of its two diesel locomotive repair depots.

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ARCELORMITTAL KRYVYI RIH BUYS FOUR CZECH DIESEL LOCOMOTIVES

The Mining and Metallurgical Combine PJSC ArcelorMittal Kryvyi Rih has signed a contract with OTP Leasing financial support for purchase of four locomotives of CZ Loko based in Czech Republic. According to a press release from ArcelorMittal, the enterprise will receive diesel locomotives of an EffiShunter 1600 worth EUR 9 million in 2020.
OTP Leasing Director Andriy Pavlushyn said that the company had thoroughly prepared the given project with ArcelorMittal team and Czeck colleagues from CZ Loko.
“We are glad that the bargain was successful. For us this is a first step towards this direction: in financing operations with the locomotives, which together with our mobile and farm machineries, trucks and vans will enrich a portfolio of the main products of the company,” a press service quotes Pavlushyn as saying.
For his part, ArcelorMittal Transport Department Director Oleksiy Rybalkin said that the combine would be the first enterprise in Ukraine that will use Czech locomotives of the new generation.
Diesel locomotive EffiShunter 1600 is intended for shunting and line service. The locomotive is equipped with alternating/direct current power transmission (AC/DC) from the diesel engine to six powered wheelsets. Parameters of the vehicle are optimized for station shunting and for heavy operation on industrial sidings, e.g. in metallurgical, mining and petrochemical sectors, and for the line service.
CZ Loko is one of the largest Czech manufacturers of diesel-electric locomotives and special railway vehicles.

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UKRAINIAN STATE-RUN RAILWAY COMPANY IN TALKS WITH CANADA’S BOMBARDIER ABOUT SUPPLY OF LOCOMOTIVES

Ukrzaliznytsia, in addition to France’s Alstom and China’s CRRC, is negotiating the supply of electric locomotives with Canada’s Bombardier, Anton Sabolevsky, the director for strategic development and investment policy of the company, has said in an interview with the Magistral industry portal. “Now Ukrzaliznytsia is actively negotiating with potential partners. The main contenders are Alstom, CRRC, and Bombardier. The main advantage of these manufacturers is that they have ready-made models of locomotives for the 1,520 mm gauge, the rest require quite a long time for such models to be developed,” he said.
According to the expert, ultimately, the main selection criterion will be the total cost of an electric locomotive, taking into account its operation life, which includes the initial price of the locomotive, the cost of its maintenance, and the conditions of financing the project, as well as the volume of production localization in Ukraine.
He also said that Ukrzaliznytsia could purchase shunting locomotives from the Japanese company Toshiba.

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UKRZALIZNYTSIA TO BUY SPARE PARTS FOR GENERAL ELECTRIC LOCOMOTIVES

The regional branch Prydniprovska Railways of JSC Ukrzaliznytsia has selected Transportation Ukraine LLC to procure spare parts to U.S. General Electric locomotives for the total amount of UAH 3.12 million.
According to a report in the ProZorro e-procurement system, the deal was signed using negotiations due to the absence of competition among suppliers.
The subject of the deal is eight types of spare parts to General Electric TE33AS locomotives in the amount of 864 units. The term of the delivery is before December 31, 2019.
Transportation Ukraine LLC with a charter capital of UAH 28.1 million was registered in July 2018 in Kyiv. The founder is Transportation Systems Holdings Inc. (the United States). Gokhan Bayhan, GE Transportation’s General Manager for Russia/CIS, Europe, Middle East & North Africa, is the head of the company.
As reported, Ukrzaliznytsia has completed the first stage of the strategic cooperation with General Electric on supplies of locomotives.

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UKRZALIZNYTSIA RECEIVES 30 LOCOMOTIVES FROM GENERAL ELECTRIC UNDER CONTRACT

JSC Ukrzaliznytsia has received the last five locomotive made by General Electric Transportation (the United States), Ukrzaliznytsia Board Chairman Yevhen Kravtsov has said on its Facebook page.
Ukrzaliznytsia received all 30 contracted locomotives GE. The last five met in Chornomorsk on Friday [February 1],” he said.
The received locomotives will be sent to Kriukov Car Building Works (KCBW, Poltava region) for retrofitting, where 10 more U.S. locomotives are already in work.
According to Kravtsov, GE locomotives show themselves to be extremely effective.
“As an example, we save fuel by 30% in the Zaporizhia-Kamysh-Zoria-Volnovakha section. In addition, the locomotives of the old fleet run an average of 360 km per day, and GE diesel locomotives – 540 km,” he said.
According to the head of Ukrzaliznytsia, 15 new locomotives now ensure a quarter of diesel locomotive traction in the three regional branches where they operate: Prydniprovska, Donetsk and Odesa.

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