Ukrainian grain export by railroad on verge of collapse again?

05.10.2017

According to information received by UkrAgroConsult, market participants are increasingly facing difficulties in grain export by railroad. The main problems remain the same as last year – lack of available grain hoppers, locomotives and possible risk of diesel fuel shortage. The head of Ukrainian Ministry of Infrastructure, Vladimir Omelyan, expressed concerns about Ukrzaliznytsia’s fuel shortage informing that diesel fuel stocks of Lviv Railway were enough for half a day, other railway units had fuel for around 2-4 days of work.

According to official data of Ukrzaliznytsia, 53% of requests for grain-hoppers were fulfilled in September. What is noteworthy, Prydniprovska and Lviv railways experience the major problems. The demand for hoppers is met here by only 30%.

Automatic distribution system for grain hoppers, which Ukrzaliznytsia introduced in early autumn, raised a number of questions among market players, 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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