President backs passenger car renovation for state railway

Ukrainian President Viktor Yanukovych supports the plans of Ukrzaliznytsia, the state railroad monopoly, to acquire 248 passenger railcars in 2013, Interfax reported on March 18, citing the 2013 presidential action plan for economic reform. The plan earmarks UAH 2.7 bln from the state budget to buy passenger cars by the end of 2013.

Roman Dmytrenko: Ukrzaliznytsia announces ambitious plans to acquire new railcars every year, which are never fully implemented due to a lack of budget financing. If Ukraine is able to finance the order this time, Kryukiv Railcar (KVBZ UK), Ukraine’s only passenger railcar producer, is likely to be the main winner. The announced order exceeds Kryukiv’s nominal production capacity of 200 passenger cars p.a., which suggests the order is unlikely to be executed in 2013. Therefore, either Ukraine will split the order over a couple of years, or it will seek multiple suppliers of passenger railcars throughout the world.