“These funds worth USD 4 billion are included in the development strategy of Ukrainian Railways (Ukrzaliznytsya)”, said Yevgeny Kravtsov, Ukrzaliznytsya’s new CEO.
Ukrainian Railways Development Strategy focuses on reviving five important pillars, such as rail freight and logistics transport, passenger transport, infrastructure, traction services and the production and services segment.
“Ukrainian Railways”, Kravtsov says, “is in urgent need of massive investments in rolling stock renewal as, without such investments, the consequences of reducing transport market shares will be significant over the next five to seven years”.
Every year, Ukrzaliznytsya needs EUR 1 billion for the modernisation of rolling stock and railway infrastructure.
According to the Development Strategy of the railway company, capital investments of USD 5.9 billion are planned of which USD 4 billion will be invested in new rolling stock procurement, but also in upgrading older trains.
Yevgeny Kravtsov pointed out that, in order to develop another priority objective of Ukrzaliznytsya, railway infrastructure modernisation, it is necessary to attract additional financial resources, since the company is a state monopoly and depends on budget aids.
We remind that Yevgeny Kravtsov took over the leadership of Ukrzaliznytsya in August after the former CEO, Wojciech Balczun, resigned because of the political pressure of the Ukrainian Prime Minister, Volodymyr Groysman.
Wojciech Balczun was appointed CEO of Ukrzaliznytsya in 2016 after leading PKP Cargo, the Polish state-owned rail freight transport operator (the second largest in Europe after DB Cargo, Germany) in 2013-2016.
In one year, Balczun managed to reduce the loss suffered by Ukrzaliznytsya and even to have profit.
In fact, Ukrzaliznytsya’s current development plan, with investments of around USD 6 billion in the railway transport, was also initiated and supported by former CEO Wojciech Balczun.
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