Ukrzaliznytsia would acquire Korean intercity trains from Hyundai Rotem as on august 21, 2024, the Parliament of Ukraine ratified the framework agreement between the Government of Ukraine and the Government of the Republic of Korea regarding loans from the Economic Development Cooperation Fund (EDCF) for 2024-2029.
Ukraine Railways says that this decision pave the way for the final part of negotiations regarding the financing of projects of critical importance to the country’s economy, including the programme to expand the rolling stock. This would involve the procurement of 20 Korean intercity trains, a project which has already received a favorable assessment from experts engaged by the Korea Foundation for Economic Development and Cooperation. The next steps will include the coordination of the details of the project and the agreement at the level of the Cabinet of Ministers of Ukraine and the final signing of the agreement.
According to preliminary agreements, the total cost of the program will be about USD 450 million, including the maintenance of trains for 5 years. The delivery of the trains would be possible within 18-24 months from the signing of the agreement.
At the same time, Korean manufacturers are also interested in considering options for partial localisation in Ukraine, which is important for stimulating the domestic economy. The terms of lending by the Korean Fund for Economic Development and Cooperation are preferential, taking into account the criticality of the social component of the project.
“This is a strategic programme to expand the Intercity+ train fleet, thanks to which we will be able to increase the traffic intensity on existing ones and open new routes allowing increased train speed. This is an additional opportunity for the travel of 6 million passengers per year, which will cover today’s need for daytime high-speed traffic,” Yevhen Lyashchenko, Chairman of the Board of Ukrzaliznytsia said.
In June 2024, the Cabinet of Ministers approved the draft law on the ratification of the agreement with Korea. The adoption of this bill was necessary for the entry into force of the famework agreement on EDCF Loans totalling USD 2.1 billion, signed on 19 April 2024 in Washington, DC.
The Ukrainian state-owned rail company is renewing its fleet with the purchase of 40 diesel locomotives from Wabtec for which a USD 156 million agreement was signed with the Export-Import Bank of the United States.
In addition, the company will acquire 80 electric locomotives for which obtained a EUR 300 million funding from the EBRD.
In addition, Ukrzaliznytsia will work on the modernisation of the existing rolling stock, and also emphasises the importance of continuing the state investment programme for the production of new rolling stock for long-distance train services. All this will make passenger logistics more accessible and convenient for millions of Ukrainians in the near future and will serve as an incentive for the development of Ukrainian regions.
In parallel, Ukrzaliznytsia is repairing the rail infrastructure. Since the war, the company carried out track repair work for 737.6 km of tracks, which is 62% of the planned volume for the year. At stations with intensive train traffic, almost 239 km of tracks were renovated with major repairs, and about 499 km with other repairs.
Also, in the first 8 months of this year, 634 turnouts were upgraded, of which 142 were overhauled, and for 492 turnouts other types of repairs were implemented.
This year the track infrastructure is being repaired according to plan, so it does not affect the intensity of passenger and freight train traffic. Ukrzaliznytsia plans to repair 1,200 km of tracks by the end of this year.
One of the most important projects of Ukrzaliznytsia is the construction of the 22 km standard-gauge from Chop to Uzhhorod, which ensures rail connection to EU rail network.
The construction has been launched in April 2024 and complex works started at the end of August, currently being assembled tracks to the sites’ facilities. Also, the repair of artificial structures located along the line is in progress. Previously, the railway workers had already completed a complex of preparatory works.
Ukrzaliznytsia is expected to complete the construction of the line in July 2025.
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