EIB May Lend Ukraine EUR 100 Million For Purchase Of New Commuter Trains

02 March 2018 15:06

The Ukrainian Railways public joint-stock company (Ukrzaliznytsia) is considering the possibility of the European Investment Bank (EIB) participating in upgrade of its commuter trains.

According to Ukrzaliznytsia’s acting Board Chairman Yevhen Kravtsov, the company is seeking to purchase new trains. Kravtsov said that local authorities should also be involved in upgrade of commuter trains.

"Our open position and frank dialogue in the case of indexing freight tariffs or railcar deregulation, for example, are yielding positive results. We are finding effective mechanisms for meeting the needs of customers because our partners understand our reasoning. The same applies to commuter transportation. In cooperation with the authorities and international financial institutions, we are hoping to achieve the result for which millions of passengers are waiting," Kravtsov said.

According to him, the EIB will present several forms of possible cooperation to the local authorities in several regions. The options include upgrade of up to 70% of all commuter trains in individual regions.

The terms of acquisition of new trains and their delivery will be determined via an international tender based on the requirements of the EIB. According to preliminary information, the bank is ready to invest up to EUR 100 million in upgrade of Ukrainian commuter rolling stock.

According to Ukrzaliznytsia, the company’s regional divisions had a fleet of 297 electric trains (1,391 units) as of February 21, 2018. According to the company, 260 trains (1,053 units) are currently in operation. Of these, 1,022 units (73.5%) have reached the end of their manufacturer-stipulated service lives. The level of depreciation of the fleet of electric trains is 86.7%.

Ukrzaliznytsia’s regional divisions have 162 diesel trains and rail buses (299 units), including 148 diesel trains and 14 rail buses, on their books. Of these, 114 diesel trains (207 units) are in operation, including 105 diesel trains and 9 rail buses. Out of these, 271 units (96.1%) have reached the end of their service lives and the level of depreciation of the fleet of diesel trains is 97.1%.

On average, Ukrzaliznytsia operates about 1,400 commuter trains per day.