JSC Ukrzaliznytsia plans to expand its fleet of high-speed trains by purchasing 20 more models from Korean companies, as Ukrainian manufacturers are not ready to meet this demand within limited timeframes and due to a lack of funding. This was announced by the head of Ukrzaliznytsia, Yevhen Lyashchenko, during the Business Breakfast broadcast.
According to Lyashchenko, Ukrzaliznytsia needs to expand its fleet because it decreases by 5-7% annually. Only 10% of the company's railcars are new.
"That's why we need radical projects that will help significantly increase transportation capacity," explained the CEO of Ukrzaliznytsia.
He mentioned that the company has negotiated with many manufacturers, not just Korean ones. Some trains were purchased from the Ukrainian manufacturer, Kryukiv Carriage Works, in 2022.
"But we need a large-scale program with significant volumes, and not everyone can handle that. Secondly, we need financing," emphasized Lyashchenko.
He stated that the agreement ratified by Ukraine with South Korea at the end of August provides for long-term low-interest financing from the Korean government, which Ukrzaliznytsia can repay within five years.
"This project includes a clear and predictable five-year program for purchasing the 20 trains we need to meet demand," he said, adding that at the purchasing stage, the localization level of the trains may be minimal. "But it’s important to understand that each of these trains operates for about 40 years. The most money will go not into purchasing but into maintenance and repairs," Lyashchenko said.
According to him, the ratio could be 1:3, meaning that every 1 euro invested in purchasing could generate 3 euros in Ukraine's GDP if Ukrainian businesses establish maintenance processes.
Earlier, it was reported that over 11,608 freight cars were repaired at Ukrzaliznytsia’s facilities in the first half of 2024, 11.6% more than during the same period last year
