OREANDA-NEWS. March 19, 2010. According to Mr. Usov, the secretary of the EBRD mission in Ukraine, the tender for buying 1,000 freight cars for State Company Donetsk Railways, which was held jointly with the European Bank for Reconstruction and Development, has failed. We should remind you that bidders included Kryukov Railcar Plant <KVBZ UK BUY>, Stakhanov Railcar Plant <SVGZ UK STRONG BUY>, Concern Azovmash (Mariupol Heavy Machinery Plant <MZVM UK STRONG BUY>, and Azovzahalmash <AZGM UK HOLD> are component parts of this Concern), and Dneprovagonmash <DNVM UK N/R>.

Millennium Capital sees this news as neutral for those companies who took part in this tender because high demand for railcar production allows then to utilize the capacities of their companies to the full extent. In spite of the fact that the tender has failed because of EBRD missing the deadline for documentation review, this news demonstrates, once again, that Ukrainian Railways as a customer is far from being reliable.