Ukrzaliznytsya plans to acquire 10,000 railcars in 2012

Ukrzaliznytsya plans to acquire 10,000 railcars for its subsidiaries in 2012, Ukrzaliznytsya’s deputy CEO said yesterday (via Interfax). As the production capacity of existing railcar plants controlled by Ukrzaliznytsya can only produce up to 6,000 gondolas in 2012, the remaining 4,000 units will be ordered from local railcar builders.

Roman Dmytrenko: Ukrzaliznytsya’s ambitious procurement plan for 2012 is the first positive sign of a makeover of the company and its transformation into a joint stock company. As of end-February, Ukrzaliznytsya announced its plans to order 1,000 railcars from Kryukiv Wagon (KVBZ UK) in 2012, likely using USD 62.5 mln from an EBRD loan. We expect the remaining 3,000 railcars to also be ordered from Kryukiv and Stakhaniv Wagon (SVGZ UK). Additional demand on the market will benefit all the wagon producers, most likely via wagon prices growth.