Business news from Ukraine


11 November , 2020  

Ukrzaliznytsia intends to increase investments in rolling stock and infrastructure, Head of the Freight Transportation division of Ukrzaliznytsia, Irakli Ezugbaya, has said.
“So, if this year capital investments will amount to UAH 4.8 billion, then next year we plan to invest UAH 25.8 billion, in 2022 some UAH 28.4 billion, and in 2023 some UAH 41.1 billion. Due to this, we will be able to provide our customers with equal access to the infrastructure and not refuse any of them along with the transportation of goods that can be placed at Ukrzaliznytsia,” he said in an interview with the Centre for Transport Strategies.
At the same time, Irakli said that Ukrzaliznytsia constantly needs to increase its operating profit.
“In 2020, EBITDA margin indicators are planned at 9.1%. By 2023, we want to increase these indicators to 30%. In my opinion, the cargo business unit should significantly improve its indicators in order to compensate for potential losses from other areas, including passenger transportation. Therefore, in order to reach 23% of EBITDA in 2021, we must reach at least 30% in the cargo direction,” he said.
As reported, Ukrzaliznytsia intends to provide UAH 4.1 billion in the company’s financial plan for 2021 for the overhaul of locomotives.
In 2019, Ukrzaliznytsia increased its net profit by about 14.7 times, to UAH 2.988 billion (UAH 203.85 million in 2018). EBITDA of Ukrzaliznytsia for 2019 increased by 6%, to UAH 17.3 billion compared to the results of last year.