Ukrzaliznytsya may buy 63 passenger railcars in 2010

Ukrzaliznytsya, the state-owned railway monopoly, announced yesterday that it intended to buy 63 passenger railcars in 2010, news agencies reported. Yegor Samusenko: We see the order as unlikely unless Ukrzaliznytsya finds ways to attract external funding for its investment program. In 2009, Ukrzaliznytsya did not purchase any passenger railcars due to lack of financing. Should the state monopoly find funding for its passenger railcar purchases, most likely recipient of its orders would be Kryukiv Wagon, the only producer of passenger railcars in Ukraine. We estimate the potential order value to be at USD 44-63 mln, which would add another 15-20% to Kryukiv Wagon’s projected 2010E sales.