Ukrzaliznytsia freight locomotive fleet will be renewed with a EUR 300 million funding from the European Bank for Reconstruction and Development (EBRD), to support the purchase of electric locomotives.
The agreement was signed by the Ukrainian Railways, the EBRD and the Ministry for Communities, Territories and Infrastructure Development on the occasion of Ukraine Recovery Conference (URC2024) held in Berlin on 11 and 12 June, 2024.
Ukrainian Railways will purchase 80 modern electric freight locomotives. The relevant procurement has already been published on the EBRD tender’s portal, the company says.
The tender requirements stipulate that the winner, in addition to supplying locomotives, must create conditions for maintenance and warranty repair of new traction rolling stock on the territory of Ukraine. This is an evolutionary step in the approach to updating the fleet, because the company not only buys equipment, but also changes the approach to its maintenance. Also, it will allow to maximally localise capacities for maintenance and repair of locomotives in Ukraine.
Under the terms of the tender, the potential supplier will offer two-system electric locomotives with a maximum operating speed of up to 120 km/h. The manufacturer must also undertake the training of Ukrzaliznytsia personnel to drive locomotives. Bidders must submit two options for the tender offer covering the supply of 30 or 80 locomotives, depending on the availability of funding. Tender applications are accepted until July 22, 2024.
Earlier, as part of the World Bank’s grant financing project “Restoration of Critically Important Logistics Infrastructure and Network Connection (RELINC)” Ukrzaliznytsia was confirmed to allocate USD 190 million.
“The issue of updating the Ukrzaliznytsia freight locomotive fleet is critical and urgent. The collaboration with the World Bank and the EBRD is an example of how one of the largest international financial institutions joined forces to implement such a large-scale project. Acquiring new and high-tech electric locomotives will significantly increase the efficiency of freight transport,” Yevhen Lyashchenko, the CEO of Ukraine Railways said.
The Ukrainian Railways, EBRD and World Bank also agreed to conduct a pre-investment technical, environmental, social, financial and economic analysis of the project.
In April 2024, Ukrzaliznytsia and the Export-Import Bank of the United States signed a USD 156 million loan agreement for the purchase of 40 diesel locomotives from Wabtec. The agreement allows the negotiations between Ukrzaliznytsia and Wabtec to be completed and the locomotive purchase procedure to begin.
Ukraine needs to also restore and rehabilitate its rail infrastructure for which on 7 June 2024 the Cabinet of Ministers of Ukraine approved an additional grant agreement with the Government of the Swiss Confederation, based on the agreement signed in 2022.
The new agreement provides for the supply of rail fastening systems in 2024-2025 for the restoration of the railway infrastructure, primarily in the directions of transport corridors bordering EU countries including Slovakia, Romania, Hungary, Poland, as well as the routes towards the ports and the Trans-European Transport Network (TEN-T). In particular, works are planned in the following directions:
- Kyiv – Zhmerinka – Pidvolochysk – Lviv;
- Zhmerinka – Vapnyarka – Odesa;
- Kyiv – Hrebinka – Krasnograd – Lozova;
- Lviv – Uzhhorod;
- Kyiv – Myronivka – Pyatikhatky – Chaplyne.
Ukrzaliznytsia plans to restore a total of 230 km of railway infrastructure and increase the speed and throughput on the repaired sections and ensure smooth transport services by rail transport, using these connections.
The grant agreement signed between the Government of Ukraine and the Government of the Swiss Confederation regarding the Emergency Support Project to improve and restore the railway infrastructure of Ukraine was signed on December 23, 2022. It provided financing in the amount of up to CHF 14 million for rail fastening systems Swiss company Schwihag AG for the improvement and restoration of up to 270 km of railway infrastructure. These connections were used on important routes such as Kyiv – Odesa, Kyiv – Dnipro, Kyiv – Lviv and Lviv – Uzhhorod.
In 2023, the World Bank and Ukrzaliznytsia signed a USD 25 million grant for the reconstruction of rail infrastructure and the increase of rail freight transport.
According to the RDNA3 report developed by World Bank, the Government of Ukraine, the European Union, and the United Nations in February 2024, for 2024-2033, Ukraine needs USD 13.6 billion to reconstruct its railway tracks, bridges, stations, and electrical systems. In addition, the country needs USD 2.5 billion to reconstruct its rolling stock fleet.
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