Ukrainian Railways to be able to buy 20 Intercity+ trains thanks to agreement with S. Korea
MOSCOW. Aug 22 (Interfax) - The Verkhovna Rada on Wednesday ratified a framework agreement between the Ukrainian and South Korean governments on loans from the Economic Development Cooperation Fund for 2024-2029, which makes it possible for Ukrainian Railways to purchase another 20 Intercity+ electric trains.
"This decision paves the way to the final part of approvals for financing the projects critical for the Ukrainian economy, including the program to expand Ukrainian Railways' rolling stock, that is, to purchase 20 Intercity+ electric trains. The program has already been evaluated positively by experts invited by the South Korean Fund," Ukrainian media quoted Ukrainian Railways as saying on social media.
The next steps will include coordinating the details of the project, an agreement at the level of governments, and the final signing of the agreement.
Under the preliminary agreements, the total cost of the program will reach around $450 million, including service maintenance of the trains for five years. The delivery of trains is possible within 18-24 months after the signing of the agreement.
At the same time, South Korean manufacturers are interested in considering options for partial localization in Ukraine, it said.
Ukrainian Railways said that loan terms are favorable, given the criticality of the social component of the project: the total term is up to 40 years, and repayment of the loan body will begin after the first ten years.
"This is a strategic program to expand the fleet of Intercity+ trains, thanks to which we will be able to increase the intensity of traffic on existing routes and open new high-speed routes. This is an additional travel opportunity for six million passengers a year, which will cover the current need for daytime high-speed traffic," Ukrainian Railways CEO Yevgeny Lyashchenko was quoted in the statement as saying.
In turn, speaker of the Ukrainian Railways passenger department Alexander Shevchenko said that this summer the railroads serve 100,000 people a day, and many face a shortage of tickets.
"Indeed, we provide monitoring, auto redemption, interchanges, hub communications, run the train cars twice a day with maximum efficiency, but this does not address the fundamental problem, which is a shortage of cars," he wrote on social media, listing a number of fair reasons for the situation.
Shevchenko said that at the current rate of outdating, depreciation and disposal of railcars, their shortage risks becoming critical by 2028.
"This means that you will have conditionally a 30% chance to find a ticket to Lvov," he said, adding that one of the solutions to the problem is to purchase an additional 20 South Korean trains Hyundai Rotem.
Shevchenko also said that Ukrainian Railways is simultaneously upgrading cars by its own forces, and the Kryukov Railway Car Building Works based in the Poltava region is actively building another 66 new sleeping cars, including inclusive ones.