Ukrzaliznytsia Aiming For Annual Profit Of UAH 10-12 Billion By 2020-2021

19 May 2017 16:22

The Ukrainian Railways public joint-stock company (Ukrzaliznytsia) is aiming to earn annual profits of UAH 10-12 billion by the year 2020 or 2021. First Deputy Minister of Infrastructure Yevhen Kravtsov, who is the head of the company’s supervisory board, announced this in Kharkiv. The management of the railway company has begun a working tour of its regional branches with the purpose of discussing its development strategy for the period ending in 2021.

"Ukrzaliznytsia should achieve profits of UAH 10-12 billion per year by 2020-2021. Investments of UAH 130-150 billion are planned, including UAH 110 billion in rolling stock and UAH 40 billion in infrastructure,” said Kravtsov.

In addition, according to him, the company plans to significantly increase the number of daytime trains over the next 5 years. "Today, 30% are high-speed day trains. We intend to increase this figure to 45-50%. The company plans to upgrade about half of passenger trains either through purchase of new ones or deep modernization of existing ones," Kravtsov said.

The board of Ukrzaliznytsia approved the strategy for modernization of the company in the period of 2017-2021 on April 26.

The document confirms the previously announced plan to divide the company into five business sections: cargo transportation and logistics, passenger transportation, infrastructure, traction services, and production and services. Ukrzaliznytsia plans to create these sections in the period of 2017-2018.

Ukrzaliznytsia reported a loss of UAH 7.3 billion (based on the international accounting standards) or a profit of UAH 303 million (based on the Ukrainian accounting standards) for 2016.