Ukrzaliznytsia to buy 30 locomotives from GE next year

Ukraine’s Cabinet completed negotiations with
U.S.-based GE Transportation on strategic cooperation for the next seven years,
according to the Cabinet’s Dec. 4 press release. The contract of a total value
of about USD 1 bln will be signed by the year end will assume the supply of
diesel locomotives for Ukrainian Railway (RAILUA) over seven years, with the
first 30 units to be supplied in September 2018. The Ukrainian-sourced added
value to the locomotives will gradually increase to 40%. The final assembly of
locomotives will occur at Ukraine’s Kryukiv Railcar Plant (KVBZ UK), according
to media reports.

Alexander Paraschiy: The project is important for Ukrainian Railway, whose supply of diesel
locomotives is outdated (93% of locomotives are over 26 years old). The project
will improve the availability of new trains for transport needs, thereby
raising Ukrzaliznytsia’s freight turnover, as well as enabling the company to
save diesel fuel from the use of more fuel-efficient vehicles. The deal will
also be beneficial for Kryukiv Railcar, the only remaining Ukrainian enterprise
able to assemble large volumes of locomotives. At this stage, however, the
total positive effect on Ukrzaliznytsia and Kryukiv Railcar is hard to estimate
in financial terms.