Corporation’s Prospects

Financial and industrial corporation DMS has many years of experience in the development and implementation of projects in the real sector of the economy, including the implementation of innovative solutions. In 2010-2013, the holding's specialists, together with leading researchers from Donetsk and Ukraine, based on the best foreign experience, developed a number of investment projects in the field of coal mining, construction, production of alternative fuels and outdoor advertising, which were highly appreciated by the expert community, but unfortunately, for objective reasons were never implemented. 

Today, the Corporation is working on new investment programs, which may become the basis for business cooperation both within the country and with foreign investors. When developing projects, the emphasis is placed on the demand for and innovativeness of solutions, their practical feasibility, the optimal ratio of risks and opportunities. 

We invite for cooperation all interested structures in development of Ukrainian economy and improvement of investment climate in the country. 

OUR PROJECTS

• Production of thermal energy. Energy Efficiency 

The investor of TeploEnergo Group represents interests of DMS Corporation in the field of heat energy production. 

The company carries out: 

- development and implementation of investment projects in the sphere of heat supply and hot water production; 

- production and supply of heat energy and hot water using alternative fuels;

- conclusion and maintenance of energy service contracts. 

The company also performs a full range of works, including: 

1. Carrying out of energy audit, analysis of the received data, choice of the decision which purpose is cheapening of a heat supply.

2. Investment of own resources and execution of a full range of works from design to construction of production facilities. 

3. Operation of boiler houses. Sale of thermal energy at a competitive price. 

Today, Invest Group TeploEnergo has seven operating boiling-houses in Kyiv region, equipped with the latest equipment and operating on alternative, environmentally safe and economical fuel. The total volume of investments amounted to about 20 million UAH. 

As a result of investment projects in Irpin, block boilers have been built and are successfully operating, which operate on such alternative fuel as husk, sawdust, fuel pellet. 

Investment and implementation of projects for modernization and re-equipment of boiler facilities in the cities of Ukraine will allow to ensure fuel consumption reduction through the use of energy efficient equipment and optimization of production, transportation and supply of thermal energy, ensure quality and competitive price of heating. 

In the future, it is planned to increase the investment portfolio by at least three times - up to 60 million UAH. Implementation of investment programs related to heat generation and modernization of heat supply systems is planned in Kyiv, Luhansk (controlled territory), Kirovograd, Chernigiv, Poltava and Dnipropetrovsk regions. 

Also, one of the advantages of cooperation with Invest Group TeploEnergo is the possibility of implementing an energy service contract. This is one of the effective and economic tools to improve energy efficiency for the customer: the contract provides for the return of funds spent on energy conservation through savings of energy resources. At the same time, the customer does not invest funds in the implementation of energy saving measures, but only transfers to the account of the energy service company (ESCO) the funds saved after modernization, if such savings are achieved. The whole range of necessary measures and risks to achieve the declared results is the ESCO's area of responsibility. Thus, the energy service company is interested in high-quality work, as the payback of the project and the amount of profit directly depend on the amount of savings made by the customer.

We invite to cooperation companies, for which heat energy production is the main or auxiliary business, to develop a successful partnership in this promising area. We are also open to cooperation with state local authorities interested in ensuring that residents whose interests they represent receive quality services and that the city receives a modern heat supply system.     

• Rail transport 

DMS Corporation considers the railway transportation market as one of the most promising areas for investing its own funds and attracting external financial resources in the segment where new, technically advanced, commercially viable and technologically advanced rolling stock is required. The development strategy of this business line implies the increase of the own fleet of freight railway gondola cars and their formation in the routes. The government policy aimed at liberalizing the traction market has become an important incentive for the Company to expand its presence in this segment. 

In terms of freight traffic volume, the Ukrainian railways take the fourth place on the Eurasian continent - the annual traffic volume (per 1 km of railways) is 3-5 times higher than the corresponding figure in other European countries. The main trans-European transport corridors: East-West and Baltic-Black Sea pass through the country. Ukrainian railways directly border and interact with the roads of 7 countries, 40 international railway crossings, as well as serve 18 ports of the Black Sea-Azov basin. There are 3 international railway transport corridors through the territory of Ukraine. And, at the same time, freight transportation by rail in Ukraine is experiencing a systemic crisis. First of all, it is connected with high level of the rolling stock wear and tear and deficit of technically sound and commercially suitable wagons for cargo transportation. According to the analysts' forecasts, the deficit in the most mass and liquid segment - in the market of gondola cars - is about 20 thousand units without taking into account the need to write off cars with extended service life exceeding the normative one. Therefore the real need for gondola cars fleet renewal is estimated by the market experts at 4-5 thousand units per year during the next 5-7 years.

The decision of the Cabinet of Ministers of Ukraine "About realization of the pilot project on admission of private locomotives to work on separate routes on public railways" can start the mechanism of the decision of the given system problem. According to the authorities, this will partially solve the problem of Ukrzaliznytsia's traction rolling stock deficit, test the functioning of the railway transportation market under the conditions of operation of several railway carriers, work out technical and technological peculiarities of realization of access to the railway infrastructure, study the issues of traffic safety organization during operation of private train formations on the public railway network.

DMS Corporation plans to enter the TOP 20 of private gondola owners in Ukraine, increasing their number to 500 units and forming about 10 commercially attractive routes. This investment program is to be implemented in two stages. The promotion strategy is based on long-term experience of effective work with JSC "Ukrzaliznytsia", with other market participants and operators. 

The interests of FPK DMS in the segment of railway transportation are represented by Alfa Group Kiev. The company carries out: 

- attraction of share, investment and borrowed capital for financing the railcar program; 

- management of finances received as income from rolling stock operation; 

- operative work with financial institutions on fulfillment of obligations; 

- organization of efficient use of own and borrowed rolling stock;

- control of the rolling stock repair and maintenance.

The main competitive advantages of the Corporation for investors and partners are:

- Long-term experience in the railway transportation market, competence of management and specialists, well-established business processes;

- availability of the fleet mainly of new technological cars, the number of which is constantly increasing;

- stable business relations with JSC "Ukrzaliznytsia", other market participants and operators;

- financial stability, which allows providing customers with flexible financial conditions;

- knowledge of the structure, directions and trends of the railway transportation market, which allows expanding business and meeting the demand for quality services.

Today the Company offers demanded high-quality services in the field of freight railway transportation:

- delivery of commercial cargoes on the terms of CPT station of the customer and just in time, which allows customers to effectively manage stocks;

- organization of transportation of new rolling stock, which significantly reduces the time and financial costs of loading and unloading operations, eliminates the stage of preparation of rolling stock and losses from losses in the transportation of bulk cargo;

- organization of operational control over the movement of wagons and cargo, which allows customers to ensure the quality of the planning system;

- organization of mainly route consignments, which allows to significantly reduce the time for delivery of goods;

- possibility to offer customers payment both on the fact of rendering services, and to provide payment delay.

 Private railroad traction 

Recently the railway transport has seen a decrease in the volume of transportation, increasing delivery time, the cost of loading and unloading operations, not providing timely operational information on the movement of wagons of goods, which is due to lack of competition, a very high degree of wear and tear of the railway rolling stock and its deficit. Deficit of shunting and mainline diesel locomotives has led to inability to satisfy the needs in cargo transportation that in its turn negatively affects the competitiveness of domestic enterprises, as well as the entire economy of Ukraine.

On December 04, 2019 the Government adopted a resolution of the Cabinet of Ministers of Ukraine "On implementation of the pilot project on the admission of private locomotives to work on separate routes on public railways. "Admission of private locomotives to work will partially solve the problem of Ukrzaliznytsia's traction rolling stock deficit and will test the functioning of the railway transportation market under the conditions of several railway carriers, to work out the technical and technological features of the implementation of access to the railway infrastructure, to study the issues of traffic safety organization during the operation of private train formations on public railways", - Vladyslav Kryklyy noted.

DMS Corporation in the segment of locomotive traction is represented by ELC "TRANSLOGISTICS KIEV", which since 2017 has been successfully developing on the market of railway transportation. Due to the existing shortage of locomotive traction in Ukraine during shunting operations, as well as the introduction of private traction on the railways on the main routes, the company has long been seriously studying the traction market.

At present, the company has signed a contract for the purchase of 4 units of diesel locomotives of ChME-3 series (manufactured in the Czech Republic), 2 units of 2TE10U mainline locomotives. These locomotives are purchased by the enterprise for the purpose of expanding the sphere of its professional activity within the framework of the railway direction, in particular, to work on them to serve customers with their teams of machinists, and as a consequence, to increase the income of the enterprise. Among potential clients both for rent and purchase of diesel locomotives: commercial seaports, mining and metallurgical enterprises, private railway operators of Ukraine, the largest groups of companies of Ukraine (SCM, ArcelorMittal and others) and a number of companies from Baltic and Central Asia countries.