Ukraine. Foreign companies ready to invest in railcars on certain terms

16.11.2016

Falling grain deliveries by trucks have resulted in a heavier load on railways, UkrAgroConsult reports. At the same time, the railcar fleet, which consists of 11,500 to 13,000 grain-carrying cars according to different estimates, constantly shrinks and is 95% worn-out.

Since the Ukrainian Railways merely lacks money to replace its railcar fleet, the only way out is buying railcars by traders themselves. However, for foreign companies to invest in the railcar fleet, it is necessary to cut the payback period for railcars to 3-4 years.

In the opinion of traders, businesses are ready to invest in purchases of new railcars if the Ukrainian Railways also makes certain steps for its part, informs UkrAgroConsult. In particular, it is proposed to reduce rail freight tariffs for new railcars by 30% for five years. Then Ukraine will end up with new railcars and usual tariffs in five years.

Otherwise, there is a risk that Ukraine will fail to realize its export potential to the full extent. In turn, the farmer will get less money and grain production will consequently decrease as soon as next year.

 

UkrAgroConsult

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