Business news from Ukraine

Business news from Ukraine

FIRST BATCH OF UKRAINIAN CORN ARRIVES AT GERMAN PORT

24 May , 2022  

The Czech railway carrier ČD Cargo delivered the first train with 1,800 tonnes of corn from Ukraine to the German port of Brake for subsequent shipment to Egypt on a grain carrier ship.

Such a change in logistics routes is necessary to free up silos in Ukraine to receive a new crop, and to avoid starvation in North Africa and Asia that consume Ukrainian agricultural products, according to a posting on the website of the publication zdopravy.cz (the Czech Republic) on Tuesday.

“We see this as a help and at the same time a business opportunity. Due to the Russian invasion, Ukraine cannot export grain in the traditional way through the Black Sea ports. A new harvest is approaching, and the silos in Ukraine are still full. Therefore, it is necessary to decide how to get at least part of the stocks by rail across Europe,” Board Chairman of ČD Cargo Tomáš Tóth was quoted as saying.

The Czech railway carrier returned with a batch of corn from Ukraine, where it had previously delivered a batch of humanitarian aid and military equipment.

At the same time, railway exports from Ukraine are fraught with problems due to different gauges in the EU and Ukraine, as well as insufficient capacity of logistics routes.

“Firstly, these are different dimensions: carriers can either pick up wheeled carts or reload the cargo. However, transshipment options are limited. Another bottleneck is, respectively, border crossings. Their capacity is significantly limited, for example, in the Elbe valley between Děčín and Dresden. Unloading capacities in ports are also not unlimited,” the publication said.

Zdopravy.cz recalled that Ukraine is one of the main suppliers of grain and other crops to the world market. Due to the blockade of its seaports by Russian ships, wheat exports have stopped, the country needs to export about 20 million tonnes of grain to avoid starvation in the countries of North Africa and Asia, which traditionally purchase Ukrainian agricultural products.