Business news from Ukraine

Mostiska container terminal handled 72.4 thousand TEU

The Mostiska container terminal, which began operations in mid-2022, handled more than 72.4 thousand TEU of cargo in containers in 2023, the press service of the Lemtrans logistics company reports.

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, 37 thousand tons – beam cargo, the report said.

In addition, the terminal received electric vehicles in 2023 – 36 containers with 108 cars were unloaded.

“The availability of modern infrastructure and equipment, optimal utilization of production capacities and the professional approach of our employees allowed us to successfully transship all the declared cargo through the terminal in 2023 and set personal records. We expect deeper integration and an increase in cargo traffic from the EU, as well as an increase in containerization,” the press service quoted Dmytro Kobzar, CEO of Mostyska Drive Port, as saying.

According to him, the second half of 2023 saw a dynamic growth in transshipment volumes, which had a positive impact on the terminal’s performance.

“The reason for the growth of cargo transshipment volumes was primarily the reorientation of sea lines and the establishment of work through the ports of Poland. Another factor behind the increase in volumes was the development of production capacities, the provision of new services and a high level of service,” he said.

The export flow of cargo was directed mainly to Asian countries, through European ports, as well as to Poland, Italy and Germany.

Mostyska Dry Port clarified that capital investments in the development of the container terminal’s capacities did not stop in 2023 and amounted to UAH 100 million.

“Despite the war, we do not stop and continue to invest in the Ukrainian economy. In 2024, we plan to increase the terminal’s production capacity by expanding the operating areas for handling and storing containers, as well as actively develop container transportation between the terminal and EU countries as an alternative to road transportation,” Kobzar emphasized.

In 2023, the terminal transferred UAH 27.66 million to the budgets of all levels. UAH 15.49 million was transferred to the state budget alone, including UAH 4.65 million in VAT. Local budgets were replenished by more than UAH 12 million. The single social contribution amounted to UAH 11.13 million.

The Mostyska Container Terminal dry port is a partnership project of Lemtrans and Rail Trans Investment. It is located in the immediate vicinity of the Shehyni-Medica checkpoint on the Ukrainian-Polish border. The total area of the terminal is 36 hectares. The logistical advantage is the availability of 1435 mm and 1520 mm railways, which allows unloading and loading trains bound for the EU countries.

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“Ukrzaliznytsia” has increased container transportation by 34%

In 2023, Ukrzaliznytsia (UZ) transported 201.26 thousand twenty-foot equivalent containers (TEUs), up 34% from 2022 and in line with the figures for 2019 before the war, Valery Tkachev, deputy director of the company’s commercial department, said on Wednesday at a meeting on the development of intermodal transportation.

According to him, before Russia’s full-scale invasion, UZ’s container transportation had been growing by 11-22% for four years, including 14% in 2021, but after Russia’s full-scale invasion in 2022, it fell by 46% to 150 thousand TEUs.

“If in 2021 we already reached 279,792 thousand TEU, in 2022 we fell to 150 thousand TEU, that is, 46%,” Tkachev emphasized.

He noted that the rapid recovery of container transportation in 2023 was due to the blocking of Ukrainian seaports.

“If you look at the traffic, 62% of all container transportation is export, 19% is domestic transportation, and 19% is import,” he described the market.

The UZ representative added that grain is the most popular containerized cargo, accounting for 49%. Ferrous metals are in second place (17%), followed by oil cake (14%) and oil (10%).

Tkachev emphasized that the 2023 figures, although positive, are significantly lower than those set out in the development strategy of Ukrzaliznytsia, which provided for the transportation of more than 1 million TEUs per year.

He reminded that in March 2023, UZ launched the intermodal train service, and almost 200 trains were sent.

At the same time, the deputy director of the commercial work department noted that after testing the counter-rail transportation to Poland in December 2023, problems with tariffication arose.

“We are still receiving invoices from the Polish side. There was an agreement on a comprehensive rate, but for some reason the Polish colleagues continue to adjust it, so we are now working with the Polish side to get a single comprehensive rate for this service, and then we will be able to work more rhythmically and transport container trains,” added Tkachev.

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NINTH CONTAINER TRAIN FROM CHINESE CITY OF NANCHANG ARRIVES IN KIEV

The ninth container train from the Chinese city of Nanchang arrived at the Kyiv-Lisky station, the press service of Ukrzaliznytsia said on Saturday.
Three more trains from China are expected throughout September, according to the company.
Ukrzaliznytsia notes that the arriving train includes 41 containers with mineral fertilizers, light industry goods, lamps, bulbs, chemical components for water filtration and less-than-car load. In addition, the train delivered medical supplies to Ukraine, in particular, masks and other protective equipment.
The distance of transportation, which is more than 9,000 km along the territories of four countries, are covered by China trains during 15 days on average.
As reported, direct container shipments from China to Ukraine began on June 8, 2020.

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STATE-RUN UKRZALIZNYTSIA LAUNCHES THREE NEW REGULAR CONTAINER TRAINS FOR CARRYING GRAIN

PJSC Ukrzaliznytsia in September 2019 has launched three new container trains for grain transportation running on a fixed schedule from Chornomorsk-Port station (Odesa region) to Balin station (Khmelnytsky region), and from Hnivan station (Vinnytsia region) to Starokostyantynivka station (Khmelnytsky region).
This follows from the report of Ukrzaliznytsia press service as quoting company’s head Yevhen Kravtsov as saying on September 24.
The railway operator has already put 27 container trains, of which 22 are regular ones.
“Now Ukrzaliznytsia operates about 150 grain containers used to transport grain cargo from elevators to seaports. The design of these containers allows to unload grain directly onto the vessel, which significantly speeds up the transportation process, and, therefore, reduces its cost,” the press service quotes Kravtsov.
According to him, in general, from the beginning of 2019, 248,280 containers (TEU) were transported, which is 10% more than over the same period in 2018.
Besides, Kravtsov said that since the beginning of 2019, the company launched extra ten container trains, of which four are international ones.
“Such service allows reducing the turnover of rolling stock more than three times and, as a result, helps to reduce the final cost of cargo transportation by 25%,” Ukrzaliznytsia head said.

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