Ukrzaliznytsia will triple capital investments in repairs, modernization and construction

In 2021 Ukrzaliznytsia plans to allocate 3 times more investments in renovation, overhaul, modernization of rolling stock and construction of infrastructure, comparing to 2020. These are the financial plans of the company for the next year, reports the railway magazine «Railway Supply» referring the Press Center of UZ

upgrade the rolling stock
Picture: Ukrzaliznytsia. The chairman of the board of Ukrzaliznytsia Volodymyr Zhmak

Thus, the capital investments of the enterprise in 2021 should amount to UAH 27.2 billion, while in 2020 this amount was about UAH 9.7 billion. Note that 55% of this amount is the company’s own funds, 31% – investors’ funds, another 14% is planned to be received from the state budget.

At the same time, UZ counts on state support in the implementation of these plans. After all, investments in infrastructure renewal should be comprehensive and systemic, so that in the future they return to the state budget as a profit.

The company’s management announced a development plan for the company, which will help to bail it out by 2021 and ensure a high level of profitability. This plan foresees, first of all, an increase in the volume of freight traffic and a massive modernization of wagons and locomotives.

According to the chairman of the board of the company Vladimir Zhmak, 2021 should be a breakthrough for the company on the way to transform UZ from a loss-making company into a profitable business.

Related:

Ukrzaliznytsia plans to modernize passenger railcars in 2021

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