Kryukiv Wagon to modernize subway cars for Kyiv

Kryukiv Wagon (UX: KVBZ UK) agreed with the City of Kyiv’s Metro System to modernize 200 subway railcars in 2012-13, Interfax reported yesterday, citing company CEO Eugene Khvorost. Vitaly Gorovoy: Kyiv Metro is starting to upgrade its old cars as it does not have enough cash to buy new ones. We estimate the cost to modernize one car at USD 250-280 ths, roughly 50-60% of the cost of a new railcar. However, Kryukiv Wagon would not receive all of this cash, as it must order new engines and other power equipment made by Mitsubishi and Itochu. We deem the new order positive for Kryukiv Wagon in any case, though it implies little prospects for new subway railcar sales domestically in the near future.