Business news from Ukraine

Business news from Ukraine

UZ increased freight transportation by 29.9%

10 June , 2024  

In January-May 2024, Ukrzaliznytsia (UZ) increased the volume of cargo transportation by 29.9% to 75.43 million tons compared to the same period in 2023.

At the same time, according to an analytical note prepared for a meeting of the Exporters’ Office on Friday, in May, the volume of grain cargo transportation to ports for the first time reached the level that preceded the full-scale invasion. Exports of ore, building materials and cement also increased significantly.

“The increase in transportation volumes is due to the activity of cargo exports, largely due to the opening of sea routes. At the same time, massive rocket attacks have significantly affected the state of the energy sector, certain industries, and transport infrastructure, which affects the dynamics of cargo transportation,” the note says.

The volume of cargo transportation by Ukrzaliznytsia in export traffic in January-May increased by 56.7% to 37.97 million tons. Over the five months, the share of rail freight exports increased by almost 9 percentage points to 50.4% of the volumes transported by various modes of transport. In the first five months of 2023, it was 41.7%.

In May, the volume of cargo transportation for export increased by 7.4% compared to April to 7.55 million tons. In May 2023, this figure doubled (+3.76 million tons).

According to the main nomenclature of export transportation in May, grain cargo took the first place – 3.28 million tons (43.4% of the total volume of cargo transported by rail for export in May), iron and manganese ore took the second place – 2.7 million tons (35.8%), and ferrous metals took the third place – 410 thousand tons (5.5%).

Thanks to the work of the Ukrainian Sea Corridor and the gradual resumption of production at the mining and metallurgical enterprises, the export of iron and manganese ore has increased significantly, UZ noted.

In addition, it is reported that the volume of grain cargo transportation towards ports in May for the first time reached the level that preceded the full-scale invasion. The company transported 2.91 mln tons, which is 0.6% more than in February 2022. In the direction of the land crossings, 361.7 thousand tons were transported, which is 5.6 times more than in February 2022.

The volume of grain cargo transportation for this period in 2024 increased by 38.9% compared to the same period last year – up to 16.17 mln tons. In May, the volume of grain exports amounted to 3.28 million tons, up 10.1% compared to April.

The volume of iron and manganese ore exported in the first five months of 2024 increased 2.1 times compared to the same period in 2023, to 15.2 million tons. In May, the volume of ore exports increased slightly compared to April, by 2.8% to 2.7 million tons. The company transported 1.39 million tons (51.6% of exports) to seaports and 1.3 million tons via land crossings.

Exports of ferrous metals increased by 4% to 2.02 million tons over the reporting period. In May, 414.6 thousand tons of ferrous metals were transported in export traffic, up 1% compared to April.

The volume of exports of ferrous metals in the direction of seaports amounted to 305.6 thousand tons (73.7%), and 109 thousand tons through land crossings. It is noted that in May-2024 compared to May-2023, the volume of exports of ferrous metals fell by 12.2% (57.6 thousand tons).

The volume of vegetable oil exports for 5 months increased by 20.3% compared to the same period last year – up to 770.9 thousand tons. In May, it amounted to 195.1 thsd tonnes, up 28.7% compared to April.

As noted, the oil is exported mainly through land crossings, through which 140.4 thsd tonnes (72% of the total) were exported in May, and 54.7 thsd tonnes through seaports. Compared to May-2023, in May-2024, the volume of vegetable oil exports increased by 68.6% (+79.4 thsd tonnes).

Exports of building materials increased to 1.22 million tons. In May, the highest export volume of construction materials was recorded – 358.4 thousand tons, which is 11% more than in April.

Cement exports increased by 40.6% to 566.5 thousand tons over 5 months. In May, the highest volume of cement exports over the past five years was recorded – 151.4 thousand tons, which is 10.2% more than in April 2014.

“For several years in a row, there has been a trend of gradual growth in cement exports by rail. In the direction of the EU, cement is exported through land border crossings,” UZ noted.

In general, exports through land border crossings decreased by 8.9% over five months compared to the same period last year to 13.33 million tons. In May, it amounted to 2.69 million tons (35.6% of total exports), which is 3.6% less than in April.

At the same time, exports through seaports increased 2.6 times to 24.61 million tons. In May, it amounted to 4.86 million tons (64.4% of total exports), up 9.7% compared to April. The bulk of cargo went to the ports of Greater Odesa (92%) and only 8% to the Danube ports.

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