The decommissioning of outdated rolling stock will help the railway update its fleet and support metallurgists with raw materials.
JSC Ukrzaliznytsia (UZ) may decommission up to 60,000 worn-out ("extended") freight wagons, which will give a boost to the renewal of rolling stock and provide the metallurgical industry with raw materials. This was announced by Valerii Tkachev, Deputy Director of the UZ Commercial Department, during the Metal Expert conference "Ukraine's Ferrous Metallurgy 2025."
"We desperately need new wagons, locomotives, and investments in infrastructure. But unfortunately, we currently lack sufficient funding," he noted.
UZ has appealed to the Ministry for Communities, Territories, and Infrastructure Development to cancel Orders No. 62 and No. 267, which currently block the decommissioning of old rolling stock. If changes are approved, the company will be able to scrap up to 60,000 wagons, of which about 40,000 belong to Ukrzaliznytsia, and 20,000 belong to private companies.
The scrap metal can be used in domestic metallurgy, and the proceeds will be directed towards purchasing new wagons.
"This is extremely important for both the Ukrainian economy and our company, metallurgists, and wagon manufacturers," emphasized the UZ representative.
It should be noted that "Ukrzaliznytsia" has not sold scrap on the domestic market through the Prozorro.Sales auction system for almost two years. The last time raw materials were put up for auction was in September 2023. Over the 9 months of that year, the railway operator sold only 76,400 tons of scrap, compared to 113,000 tons in 2022, with a planned volume of 170,000 tons.
Since UZ is the largest state-owned company generating scrap, with annual sales accounting for approximately 10-13% of the domestic consumption volume, the prolonged absence of sales poses a real threat to Ukrainian metallurgy. The reasons for the delay include attempts to obtain permission for exporting raw materials, which were not approved by the Cabinet of Ministers, and claims of an inadequate regulatory framework, which were refuted by the government.
