Ukraine. Is railway ready for the new season?

27.06.2017

Maxim Kharchenko freight market analyst at "UkrAgroConsult"

Railway has been always the main channel for delivering export grain to Ukrainian ports, and after the introduction of weight control on roads in spring 2016, the role of railroad transportation in grain logistics has increased even more. Cost-effective distances for agricultural cargoes decreased to 150 kilometers, compared to railway transportation, which means that grain logistics of Ukraine is still dependent on a giant-monopolist “Ukrzaliznytsia”.

It should be noted that over the past six seasons, grain exports from Ukraine have almost doubled, and, as a result, exporters need additional rail cars for transportation, especially in peak months of the season.

According to the representatives of “Ukrzaliznytsia”, the problems of grain logistics lie not only in an insufficient number of grain hoppers, reports UkrAgroConsult.

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

 

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