The Ukrzaliznytsia public railway company plans to buy almost 9,000 freight cars in 2017. According to the company’s draft financial plan, the company plans to buy 5,890 freight cars with a loan from the European Bank for Reconstruction and Development (EBRD) and build 3,000 at its own facilities. As reported, the company previously announced plans to buy 6,600 gondola cars.

According to Ukrzaliznytsia, the relevant capital investment program can be implemented only if freight tariffs are raised. "On average, freight tariffs within Ukraine are lower than freight tariffs in the Russian Federation 1.7-fold, Belarus 1.4-fold, Poland 8.9-fold, Slovakia 6.3-fold, Hungary 7.3-fold, and Romania 3.1-fold times," Ukrzaliznytsia said.

Related: Ukrzaliznytsia Expects To Raise Freight Rates By 25%, Passenger Rates By 35% In 2017

Ukrzaliznytsia plans to spend the proceeds from the proposed increase of freight rates as follows: UAH 3.5 billion on repair of tracks and rolling stock; UAH 2 billion on reconstruction of more than 240 kilometers of tracks and almost 200 sets of switches; UAH 0.9 billion on upgrade of the catenary system, signaling equipment, etc,; UAH 2.5 billion on purchase of 3,100 freight cars; UAH 1.3 billion on modernization of more than 11,500 freight cars; UAH 0.8 billion on modernization of almost 100 locomotives.

Overall, Ukrzaliznytsia plans to increase capital investments 2.4-fold – from more than UAH 11 billion to UAH 27.4 billion – in 2017.

Ukrzaliznytsia also plans to add 370 new freight gondola cars to its fleet in 2016. These freight gondola cars will be built at the company’s own facilities: 200 will be built at the Paniutynskyi railcar repair plant before the end of December and 68 at the Stryi railcar repair plant. In addition, the Darnytsia railcar repair plant has already produced 20 gondolas out of the 100 planned for this year and plans to build the remainder before the end of December. In addition, Ukrzaliznytsia has announced that the Paniutynskyi railcar repair plant built 28 pellet cars in October. Ukrzaliznytsia controls all these plants. 

In addition, Ukrzaliznytsia plans to purchase 650 gondola cars from other Ukrainian companies this year.