Ukrzaliznytsia funnels almost UAH 1.3 bln into capital investment in Jan-March

PJSC Ukrzaliznytsia funneled almost UAH 1.3 billion into capital investment in January-March 2017, which was 60% up year-over-year, when it spent UAH 804.2 million on capital investment.

The company managed to achieve such a level of capital investment due to a government resolution allowing the company to invest before the approval of the railway company's consolidated financial plan for 2017, Ukrzaliznytsia's press service said with reference to Director for Economy and Finance Andriy Riazantsev.

"The draft financial plan has already been agreed by the company's management board and has been submitted to the Ministry of Economic Development and Trade for consideration and approval. I hope all involved ministries and agencies will promptly approve our financial document, which will facilitate the implementation of all programs for modernization and strengthening of the financial stability of Ukrzaliznytsia," Riazantsev said.

Ukrzaliznytsia says its management sees the purchase of new rolling stock and modernization of the existing equipment as a priority for investment, therefore the bulk of the funds, namely UAH 815.9 million, was spent on these programs alone.

In particular, UAH 314.6 million was spent on the manufacture and purchase of new rolling stock. This sum was enough to buy 12 passenger cars and manufacture 134 freight wagons at Ukrzaliznytsia's car building and repair and plants, the press service said.

Over UAH 501 million was injected in the modernization of rolling stock, which is 32% more than the sum in the first quarter of last year. This year, UAH 154 million was spent on modernization of traction rolling stock, UAH 303.5 million on upgrading of freight cars and UAH 40.8 million on passenger cars.

Some UAH 297.7 million has already been allocated for capital construction this year. Of the sum, UAH 126.8 million was spent on the construction of the Beskydsky Tunnel in the Carpathian Mountains and UAH 113.5 million on reconstruction and repairs to railway tracks.