Ukrzaliznytsya raises freight transportation by 8.5% y-o-y in 8M11

Ukrainian state railway monopoly Ukrzaliznytsya increased freight transportation by 8.5% y-o-y to 304 mln mt in 8M11, RZD Partner, the official publication of Russian Railways, reported yesterday. Ukrzaliznytsya transported 280 mln mt of freight in 8M10. Passenger transportation rose by 0.5% y-o-y to 338.6 mln individuals in 8M11. Vitaly Gorovoy: Growth in Ukrzaliznytsya’s profitable freight transportation business can have a positive trickle-down effect on Ukrainian railcars makers by giving it additional cash it could allocate to upgrading its railcar fleet. We view the news as moderately positive for Kryukiv Wagon (UX: KVBZ UK, BUY), Stakhaniv Wagon (UX: SVGZ UK, BUY) and Mariupol Heavy Machinery (UX: MZVM UK, N/R).