Ukrzaliznytsia purchased diesel fuel for almost UAH 5 billion last year.

In 2020, Ukrzaliznytsia held successful auctions for the purchase of 250 thousand tons of diesel fuel in the amount of UAH 4.9 billion, informs Railway Supply magazine with reference to the press center of Ukrzaliznytsia.

Ukrzaliznytsia purchased
Ukrzaliznytsia

According to the message, the expected cost of fuel was UAH 5.9. However, “due to competitive procurement procedures and the great interest of market participants” the actual cost of the diesel was 4.9 UAH. Thus, it was possible to save about UAH 950 million, or 16% of the initial cost.

Diesel fuel remains Ukrzaliznytsia’s main item of expenditure in procurement. In general, the “Production Support Center” branch during 2020 announced about 700 purchases. Based on their results, 470 contracts were concluded for UAH 8.4 billion.

Ukrzaliznytsia buys diesel fuel under a framework agreement with suppliers, the mechanism of which is based on the use of Platts quotes taking into account exchange rates. At the same time, a wide range of bidders makes it impossible to establish a monopoly on supplies.

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Supply of railway wheels for Ukrzaliznytsia for UAH 118 million