Cabinet of Ministers confirms purchasing plan for Ukrzaliznytsya in 2012-2016

Ukraine’s Cabinet of Ministers confirmed the previously announced plans by Ukrainian state railway transport monopoly Ukrzaliznytsya to buy 509 new locomotives in 2012-16 (see our news from July 12, 2011), RZD-partner reported on Friday. Ukrzaliznytsya plans to buy 66 locomotives in 2012, 104 units in 2013, 110 in 2014, 114 in 2015 and 115 in 2015. The volume of the entire program is UAH 28.7 bln, which will be funded by Ukrzaliznytsya’s own funds and loans. We evaluate the news positively for the only local producer of locomotives, Luhanskteplovoz (UX: LTPL UK), which could get the bulk of the order.