JSC “Ukrzaliznytsia” plans to expand its fleet of high-speed trains by purchasing 20 new models from Korean companies. This step is caused by the fact that Ukrainian manufacturers cannot provide the necessary volumes within a limited time frame and due to a lack of funding. About this reported the head of the Ukrainian University Yevhen Lyashchenko during Business Breakfast by Forbes Ukraine.
The new trains are expected to be able to carry about 6 million passengers a year, which will significantly increase the railway’s capacity.
“Every year our fleet is reduced by 5-7%, and only 10% of the cars are new. We need radical projects to significantly increase transportation”, – explained Lyashchenko.
UZ conducted negotiations with various manufacturers, but chose Korean partners due to attractive financial conditions. The agreement, ratified by Ukraine at the end of August, provides for long-term low-interest loans from the South Korean government. This will allow UZ to return the funds within five years.
“The project has a projected program for five years, which includes the purchase of 20 trains to meet demand”, – noted Lyashchenko. However, he admitted that at the initial stage, the level of localization of train production will be small.
Lyashchenko also emphasized that the biggest costs will not be for the purchase, but for the operation and repair of the trains, which will operate for about 40 years. According to him, the ratio of funds invested in the purchase to the contribution to Ukraine’s GDP can be 1:3, if Ukrainian companies can provide service for these trains.
