Regional Branches Of Ukrzaliznytsia Allowed To Lease Private Locomotives

13 July 2018 16:09

Regional branches of the Ukrainian Railways public joint-stock company (Ukrzaliznytsia) will be able to lease locomotives from private companies if it is economically feasible and Ukrzaliznytsia approves. This is stated in information that the CFTS portal obtained from Ukrzaliznytsia.

According to the information, a document granting directors of Ukrzaliznytsia’s regional branches the right to conclude agreements on lease of assets worth any amount with the prior written consent of Ukrzaliznytsia has been approved.

In particular, this involves lease of private locomotives. "Lease of private locomotives to a regional branch is possible only after the regional branch performs a feasibility study into the effectiveness of such an operation, with subsequent drafting of a comparative alternative (for example, renewal of broken diesel locomotives)," Ukrzaliznytsia said.

According to Ukrzaliznytsia, if leasing locomotives is economically beneficial, it will be necessary to plan the corresponding expenditures in the consolidated financial plan for a certain period and procure the lease services in accordance with the requirements of the law.

As reported earlier, the Ternopil Railway Directorate of the Lviv Railroad has begun talks with shippers on the possibility of them picking up and delivering cargoes to key railway stations with their own locomotives.