photo: Wikimedia commons / Public domain/Ukrainian Railways
Ukrainian Railways is making significant strides in modernizing its fleet, adding 200 flatcars manufactured in its own production facilities. These newly built platforms are designed to transport large containers between Ukraine and the European Union.
The new flatcars are part of Ukrainian Railways’ broader efforts to expand its fleet and improve its transport capacity, particularly for intermodal services. As the company continues strengthening its logistics capabilities, it is better positioned to meet the growing demands of cross-border trade with Europe. The production of these new wagons has been a key part of Ukraine's post-war recovery strategy. "Our repairs at the plant have gained new work, income, and preservation of jobs," said a Ukrainian Railways representative. "The new rigs will allow us to transport at least 300,000 extra tons of cargo each year," they added.
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A Shift Toward Domestic Production
Historically, Ukraine’s railway network relied heavily on Russian-made vehicles, but since Russia’s unprovoked full-scale invasion in 2022, Ukraine has been forced to shift its focus toward domestic production. The Ukrainian government imposed a ban on Russian railway vehicles, pushing for the development of locally made alternatives to ensure independence and stability in its infrastructure. This transition has proved economically advantageous, with Ukrainian Railways saving EUR 2.4 million in 2022 and 2023.
The shift towards domestic manufacturing is part of a broader investment plan, with nearly EUR 19.3 million allocated to domestic production in 2022 and 2023. This has resulted in the in-house production of 151 products, including crucial railway components such as brake pads, which are now 30% cheaper to produce domestically than to purchase from external suppliers.
Geopolitical Challenges Drive Innovation
The ongoing Russian war once again revealed the importance of self-sufficiency for Ukraine. With limited access to foreign products, Ukraine has had to focus on securing the stability of its rail infrastructure by ramping up domestic production. This is both a cost-saving measure and a strategic necessity to maintain uninterrupted operations amid international sanctions and supply chain disruptions. As one of the largest state-owned enterprises in Ukraine, Ukrainian Railways is working to safeguard its long-term operational stability, ensuring it can continue to provide vital transport services despite the war.
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Laude Smart Intermodal: Supporting Ukraine’s Growing Transport Sector
In addition to the expansion by Ukrainian Railways, Laude Smart Intermodal has been expanding its services to meet the growing demand for efficient cargo transportation, as RAILTARGET previously reported. Laude, which recently transported over 53,000 TEUs in the first half of 2024, is helping to enhance Ukraine’s connectivity to the European Union.
As part of its efforts to strengthen intermodal services, Laude is expanding its rail connections across Europe, focusing on the Zamość-Gdansk route. By increasing the frequency of its services and improving logistics, the company aims to better integrate Ukrainian goods into European supply chains, facilitating smoother transport to countries like Germany, the Netherlands, and Romania.
According to Pavel Kolosko, CEO of Laude Smart Intermodal, "We are focused on increasing our operations to meet the growing demand for intermodal services in Ukraine, and this expansion will significantly enhance the efficiency of freight transport."
Source: RailFreight; RAILTARGET; Laude; VibeWire Magazine