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 SEEKS TO REPLACE SPARE PARTS OF RUSSIAN ORIGIN WITH UKRAINIAN ONES

JSC Ukrzaliznytsia has presented a catalog with a list of spare parts that require replacement to potential Ukrainian manufacturers.
According to a posting on the website of the company, thanks to replacement of imported spare parts used in the railway sector, Ukraine’s economy could receive some UAH 1.6 billion and 8,000 additional jobs in 2019.
Ukrzaliznytsia urgently needs replacement of spare parts, first of all, those produced by the Russian Federation. Therefore, we are coming up with a proposal to national manufacturers – to create an alternative to the products of the aggressor country. As an example: in 2019, the company needs 230 positions of these spare parts – this is 575,000 units and UAH 1.6 billion for the Ukrainian economy,” acting Board Chairman of Ukrzaliznytsia Yevhen Kravtsov said.
Now Ukrzaliznytsia is negotiating with the state-run electronic trading platform ProZorro.Sales to provide it with the opportunity of entering into framework agreements with suppliers for a period of three years.
“For domestic enterprises, this is better than one-time orders. Then the owners will be interested to invest in the development of their production facilities and understand the volume of products for the long term,” Kravtsov said.
In addition, next year, Ukrzaliznytsia is ready to further invest UAH 13.5 billion in addition to the level of investment in 2018. This is UAH 8.1 billion in capex and UAH 5.4 billion in current repairs.

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