Business news from Ukraine

“Lemtrans” reduced volume of cargo transportation by 9.6%

9 February , 2024  

Lemtrans, Ukraine’s largest private railroad operator, reduced the volume of cargo transportation of various types by 9.6% in 2023 compared to 2022, to 17 million tons.

According to the company’s press service on Friday, the bulk of the cargo transported was coal. It accounted for about 79% of the transportation volume (13.5 million tons).

The company mainly transported coal from mines to power plants, the company said. And while the volume of its transportation remained unchanged compared to 2022, the volume of construction materials increased by 30% to 2.9 million tons. The volume of iron ore cargo decreased the most – by 4.1 times, to 0.4 million tons. Other types of cargo were transported at 0.2 million tons.

“Business still depends on the potential threat of destruction of the frontline industry, logistical bottlenecks such as ports and congestion at the EU border. But despite the war, we are not stopping and are focused on the development of Ukraine. Our investment activities were an important area of focus last year. We are investing in new infrastructure projects, such as the terminal and container business,” the press service quoted Lemtrans CEO Volodymyr Mezentsev as saying.

In 2023, Lemtrans Group invested more than UAH 160 million in infrastructure and logistics projects, mainly in the development of the container business. The development of the Mostyska container terminal (Lviv region) continued.

In addition, it was decided to start design work on two new container terminals in Ukraine.

In 2023, Lemtrans implemented an investment program aimed at further improving the efficiency and increasing the productivity of its car repair facilities.

In 2023, the volume of planned and current repairs of freight cars at Lemtrans’ car repair site amounted to 5.2 thousand units.

In 2023, Lemtrans Group transferred about UAH 929 million to the budgets of all levels. In particular, UAH 840 million was transferred to the state budget. Local budgets were replenished by more than UAH 88 million, and the unified social tax amounted to approximately UAH 64 million.

Last year, the company allocated more than UAH 41 million to support the Armed Forces, the TRO, humanitarian aid to the population and other charitable projects.

Earlier it was reported that the Mostyska container terminal, which began operations in mid-2022, handled more than 72.4 thousand TEU of containerized cargo in 2023, the press service of the Lemtrans logistics company said. The total volume of cargo handled by the container terminal in 2023 amounted to 286 thousand tons. About half of it, 122 thousand tons, was grain cargo, 62 thousand tons – liquid bulk, 35 thousand tons – general cargo, and 37 thousand tons – beam cargo. In addition, in 2023, the terminal received electric vehicles – 36 containers with 108 cars were unloaded.

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