The Ministry of Infrastructure has no plans to upgrade the country’s railway rolling stock in 2015. Deputies of the Kremenchug city council received this response to their request for the government to place orders with the Kryukov Railcar Building Works and the Kremenchug steel smelting plant, the Interfax Ukraine news agency reports.
According to the relevant document, there are no funds for purchase of railcars in 2015 and there will be no orders. "The Finance Ministry was asked to provide UAH 3.8 billion for upgrading rolling stock of passenger railcars, but the money was no allocated in the budget," the document states.
In addition, provisions are not made for funds for purchase of freight cars this year. Provision was made for only UAH 110 million for purchase of a diesel train manufactured by the Kryukov Railcar Building Works.
The The Kryukov Railcar Building Works reduced production of freight cars by 54.7% to 2,406 in 2014, compared with 2013. In addition, it produced one passenger car in 2014, compared with 74 passenger cars in 2013. It modernized 95 subway cars for Kiev Metropoliten, the operator of the Kiev subway system.
The Kremenchug steel smelting plant suspended operations at the end of July 2014 because of problems selling its products, over 90% of which go to Russia. The plant has adopted a financial recovery plan, but a court has refused to approve it.
The Kremenchug steel smelting plant reduced production of casting products 5.5-fold to 12,692 tons in 2014, compared with 2013. The plant has laid off its workers en masse because it is currently out of operation. The Kremenchug steel smelting plant is the leading enterprise in the Ukrainian foundry industry. It specializes in production of steel castings for freight cars and heavy trucks.
