OREANDA-NEWS. November 8, 2010. Ukrzaliznytsia, the state-owned rail transportation monopolist, intends to produce 6,000 freight cars in 2011, the CEO of the company Myhailo Kostyuk announced on Nov 3. All the cars are supposed to be produced by Ukrzaliznytsia’s own plants, including the Darnytskyi railcar repair plant (Kyiv), the Popasnianskyi railcar repair plant (Luhansk region), and the Stryi state railcar repair plant (Lviv region). Ukzaliznytsia is currently looking for inexpensive loans to finance the project.

Millennium Capital considers the news as NEGATIVE for railcar producers mainly KVBZ and MZVM since SVGZ output of 2011 is entirely booked by VTB-Leasing (Russian) . KVBZ and SVGZ have lost an opportunity to increase their order books for the year 2011. The railcar producers could have shared about UAH 3.2bln in potential revenues. The neutral aspect of the news is that 6,000 cars totaled 35% of the current shortage of freight cars in Ukraine. Therefore, producers are still in with a chance to get orders in the middle run in view of deferred demand. Besides, as earlier reported, Ukrzaliznytsia was going to purchase 50,000 freight cars in 2011-2015.