Ukraine. Inland logistics may slow down grain exports once again

24.10.2018

Representatives of the Agrarian Policy and Food Ministry, relevant industry associations, Ukrzaliznytsya (Ukrainian Railways) and major grain and oilseed market players held a meeting on October 19, 2018, reports UkrAgroConsult.

In the course of the meeting, they discussed pressing issues concerning agricultural logistics, in particular the possibility of admitting private locomotives to the market of rail freight transportation. As it is known, Parliament failed to pass Bill No.7316 “On Rail Transport of Ukraine” in first reading on October 18.

Ukrzaliznytsya’s viewpoint:

- the appearance of private locomotives will result in unsound competition in the freight transportation market;

- unlike private grain carriers, the use of private locomotives is difficult for technical reasons.

It is worth pointing out that the number of operable locomotives has fallen by 30% over the past five years, whereas the private owners catch up with Ukrzaliznytsia on grain hoppers quantity. Business has already replenished its fleet with a total of 1.8 thousand grain hoppers. Today private park consists of 9 273 grain hoppers, while the park of Ukrzaliznytsia includes 11 636 grain hoppers.

Ukrzaliznytsya fails to meet strengthening demand for locomotive on a timely basis, particularly in periods of peak agricultural exports.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain” by UkrAgroConsult.

Analytical report "Black Sea Grain" contains detailed information on the latest trends in grain exports, supply and demand balances with breakdown by crop, price behavior, crop conditions and progress in harvesting/planting in the countries of Black Sea region.

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