U.S. transport manufacturer General Electric plans to extend its partnership with Ukraine’s railway monopoly Ukrzaliznytsia beyond the supply of 200 locomotives, as envisioned in a 10-year, $1 billion deal signed in February.
GE wants to help Ukrzaliznytsia repair and upgrade its aging rolling stock, Sinan Haseki, commercial leader at GE Transportation, said at the Infrastructure Forum in Kyiv on April 19.
He said the partnership between Ukrzaliznytsia and GE won’t be limited to buy-and-sell like the first batch of 30 GE locomotives slated for delivery to Ukraine this year.
“No locomotives will bring value if they stand idle in the yard needing maintenance,” Haseki said. “We will provide long-term maintenance to ensure the long service (of the locomotives) and will cooperate with Ukrzaliznytsia on improving the performance and reliability of its existing fleet.”
Lastly, GE is ready to provide Ukrainian railways with its latest tech solutions. One of them, Trip Optimizer, is an easy-to-use control system for trains — similar to cruise control in cars –that can increase fuel efficiency by 3-17 percent.
“We see that the Internet of Things and digitalization are becoming the next wave of added value. GE has invested a lot in these solutions, and we are eager to provide them to Ukraine,” Haseki said.
Another world leader in rail transport manufacturing, French Alstom, is also eying Ukraine.
An Alstom delegation visited Kyiv this week to discuss a joint project with Ukrzaliznytsia on the production of electric locomotives, the Office of the National Investment Council of Ukraine reported on April 19.
“In addition, the company is considering opening a representative office in Kyiv and a technological hub for spare parts manufacturing,” the statement read.
Reportedly, Alstom is now looking for Ukrainian partners, and will put an offer on the table by the end of June.
Although GE acquired Alstom’s power generation and electricity transmission business in November 2015, the French company continues to operate independently on the rail transport market.
Read more: Ukraine’s state railway failing grain exporters
Currently, Ukrzaliznytsia is unable to keep up with growing demands for shipping.
Forced to switch from highways to railroad in 2015, Ukrainian grain exporters have complained about a shortage of locomotives and grain hoppers, which jeopardizes the timely delivery of crops from elevators around the country to Odesa ports.
As a monopoly, Ukrzaliznytsia does not allow privately owned locomotives and private train operating companies on its tracks. But recently it has been pressured to consider opening the market and seek more investment into its rolling stock.
Unwilling to lose its dominance, the company announced it was ready to lease locomotives and wagons bought by exporters and private logistics companies, and operate them on the routes that have serious rolling stock shortages.
“Financial leasing is a soft mechanism for attracting private investment into upgrading the locomotive fleet. It will cover the needs of exporters and maintain Ukrzaliznytsia’s position on the freight shipping market,” the acting head of the railway, Yevhen Kravtsov, said at the Infrastructure forum on April 19.
