Business news from Ukraine

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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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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