The improvement of logistics and development of infrastructure should continue for boosting transportation and export of grain cargos, new effective silos should be built and the handling capacity of near-port stations should be increased. Representatives of JSC Ukrzaliznytsia and the Ukrainian Grain Association (UGA) have come to this conclusion at a meeting devoted to urgent issues of transportation of grain by rail, the press service of Ukrzaliznytsia reported. Ukrzaliznytsia Business Development Director Andriy Riazantsev said that the railway seeks to satisfy the market needs in the transportation of cereals, whose yields are growing annually, as much as possible. For this, in particular, it is necessary to build additional capacities for storing these products, primarily in port areas.
He said that the total shortage of certified storage facilities could be about 40-65 million tonnes. In addition, there is a significant gap in the regional coverage among the regions. Some areas are provided with storage only 20-30% of the crop.
“According to experts, the amount of funds needed to cover this shortage is around $16 billion. According to our estimates, for the rhythmic transportation of grain during the year, additional capacities are needed to store about 13 million tonnes of cargo in port areas, which can then be used during peak season deliver to ports either by rail or by road,” the press service of Ukrzaliznytsia said, citing Riazantsev.
At the same time, representatives of the UGA said that for the efficient transportation of grain cargo, it is necessary not only to develop port stations, but also to improve infrastructure throughout the country. This will allow quickly transporting grain from any region.
According to UGA president Mykola Horbachev, there are currently about a thousand silos that do not meet the modern requirements of Ukrzaliznytsia for transportation, therefore, new silos are needed and they should be arranged uniformly across the regions.
“Business is ready to build silos in the regional context in those places where it will be effective. And today, we want to identify these places together with Ukrzaliznytsia,” Horbachev said.
UGA representatives also drew attention to the need to develop infrastructure on the western borders of Ukraine, through which grain cargo is exported to European countries – Poland, Slovakia, and also to Belarus.
The association said that annually Ukraine is able to export about 5 million tonnes of grain to Europe through the western borders of Ukraine. Therefore, it is necessary to provide capacities for storing this volume at the borders, in particular at stations such as Kovel (Volyn region), Mostyska (Lviv region), Mukachevo (Zakarpattia region), which are located closer to the European gauge.
The meeting participants also said that the increase in the number of grain transport stations will contribute to the growth of grain transportation volumes. In addition, effective schedules for transporting grain cargo from those stations that are not route are required.
After the meeting, Ukrzaliznytsia and UGA plan to prepare a joint appeal to the government and parliament with a proposal to consider the possibility of prioritizing the delivery of agricultural products by rail during peak traffic, as well as to develop programs to stimulate the construction of modern silos in port areas and on the borders of Ukraine with neighboring states.
