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Eastern Europe

Amsted Rail: Improving transportation infrastructure in Ukraine

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Parts used for train carriages are manufactured on this production line

Country: Ukraine
Sector: Infrastructure
Challenge: A neglected railway network in Ukraine had become inefficient by the 1990s, with poor suspension of freight cars and excessive wear and tear on tracks.

How OPIC helped: OPIC committed political risk insurance to a project manufacturing high-strength, wear-resistant rail car parts in Ukraine, modeled on modern rail parts used in the United States. The original Pennsylvania-based investor in the project was later acquired by Amsted Rail of Chicago.

Impact: To date, more than 25,000 of Ukraine’s rail wagons have been modernized or built from scratch using the new components, made in part with heavy railway casting parts made in Amsted’s foundry in Granite City, Illinois.

The new and improved wagons have a longer service life, longer wheel life, and less downtime for repairs. They also require less energy and support increased transport speeds.

This project was profiled in 2017