Business news from Ukraine

Business news from Ukraine

In 2024, Ukrzaliznytsia reduced its operating profit from freight transportation by 2.3%

Ukrzaliznytsia in 2024 reduced its operating profit from freight transportation by 2.3% compared to 2023 – to UAH 20.39 billion, while its operating loss from intercity, international, and suburban passenger transportation increased by 15.4% – to UAH 15.70 billion. According to the annual report available to Interfax-Ukraine, revenue from freight transportation last year increased by 10.3% to UAH 81.8 billion, while revenue from passenger transportation increased by 14.8% to UAH 10.67 billion.

As stated in the document, the largest operating profit in freight transportation was generated by the infrastructure component, which amounted to UAH 13.3 billion, up 8.3% from the previous year.

At the same time, the operating result of the rolling stock component decreased by 11.7% to UAH 6.93 billion, while that of the locomotive component fell almost fivefold to UAH 0.15 billion.

As for passenger transportation, the operating loss from intercity and international passenger transportation last year amounted to UAH 8.81 billion with revenue of UAH 10.67 billion, while suburban transportation lost UAH 9.31 billion with revenue of UAH 0.52 billion. In 2023, intercity and international passenger transportation brought an operating loss of UAH 7.46 billion with revenue of UAH 9.30 billion, while suburban transportation brought an operating loss of UAH 8.24 billion with revenue of UAH 0.56 billion.

Ukrzaliznytsia added that the operating result from auxiliary activities in 2024 amounted to UAH 2.99 billion, which is 3.7% less than the previous year, with revenue from these activities growing by 15.3% to UAH 9.78 billion.

In the report, the company noted that it is continuing its operational transformation and believes that further division into infrastructure, locomotive, and car components in the freight transportation segment, as well as disclosure of the infrastructure, locomotive, and car components in the intercity and international passenger transportation segment, is necessary for analyzing the company’s performance and further reorganization.

As reported, in 2024, the company increased its revenue by 11.1% to UAH 102.87 billion, but incurred a net loss of UAH 2.71 billion against a net profit of UAH 5.04 billion in 2023.

According to the Ministry of Economy, Ukrzaliznytsia provides more than 80% of freight and about 36% of passenger transportation within the country. The company is the largest employer in Ukraine with more than 190,000 employees and operates one of the largest railway networks in Europe, stretching over 19,000 km, of which more than 9,300 km are electrified. Ukrzaliznytsia has more than 1,400 stations and a significant fleet of locomotives, freight and passenger cars.

https://interfax.com.ua/

 

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Freight transportation in Ukraine in 2024 increased by 7.8% in 2024

The volume of freight traffic in January-December 2024 increased by 7.8% compared to the same period of 2023 – up to 354 million tons.

Such preliminary data was reported by the State Statistics Service (Gosstat). According to its data, cargo turnover for the year increased by 13% – up to 184581 million tons/km.

In addition, the number of transported passengers in 2024 increased by 6.8% – up to 2.176 billion.

Passenger turnover increased by 10% – up to 43385 million passenger kilometers.

The data are given without taking into account the territories temporarily occupied by the Russian Federation and part of the territories where hostilities are (were) conducted.

“Ukrzaliznytsia” increased freight transportation by 17.9% in 2024

In 2024, Ukrzaliznytsia (UZ) increased the volume of freight transportation by 17.9% year-on-year to 174.9 million tons.

“At the end of 2024, 174.9 million tons were transported by rail in Ukraine, which is 26.5 million tons, or 17.9%, more than last year (2023 – IF-U),” UZ said in an analytical note.

It is reported that the opportunity to increase the volume of rail transportation exists thanks to the Ukrainian sea corridor. The bulk of the cargo traffic is made up of products of farmers and metallurgists transported for export.

Exports were the main driver of rail transportation in 2024, with a share of 48% in total freight traffic, compared to only 38% in 2023. Import cargo transportation volumes in 2024 increased by 40.9% compared to 2023 to 9.63 million tons. Domestic transportation decreased by 5.5% to 80.2 million tons. While in 2023 the share of domestic transportation in total cargo traffic was 57%, in 2024 it decreased to 46%.

In total, in 2024, UZ transported 84.67 million tons in the export direction, which is 51.2% more than in 2023. The largest volume of cargo grains was transported – 34.13 million tons (40% of the volume transported for export), iron and manganese ore – 33.00 million tons (39%), and ferrous metals – 5.17 million tons (6%).

In 2024, 29.2 million tons of grain cargo (86%) was transported to ports, which is twice as much as in 2023. Only 4.9 mln tonnes of grain were transported via land border crossings, which is 41.6% less than in 2023.

In general, the volume of transportation through land border crossings in 2024 decreased by 8.6% compared to 2023, to 30.9 million tons or 37% of the volume of export transportation of all types of cargo. “UZ has 19 railway border crossings, of which 15 are operational.

The volume of transportation to ports in 2024 increased by 2.4 times compared to 2023 to 53.76 million tons. In total cargo exports, their share in 2024 was 63%.

According to the results of 2024, the leading positions in terms of cargo exports are held by the stations: “Chornomorsk (17%), Berehove (14%), Odesa Port (13%), Chornomorsk Port (12%), Izov (11%), Chop (7%), Uzhhorod (6%), and Izmail (4%).

Earlier it was reported that the volume of cargo transportation by UZ in the first 11 months of 2024 increased by 19.4% to 160.9 million tons.

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LEMTRANS INCREASES FREIGHT TRANSPORTATION IN H1

The transport and forwarding company Lemtrans transported 31.38 million tonnes of various types of freight in January-June 2020, which is 26% more than on the same period of 2019.
In the six months of 2020, iron ore raw materials and coal accounted for the bulk of loading, totaling 12.57 million tonnes (8.15 million tonnes in January-June 2019) and 11.45 million tonnes (10.44 million tonnes in January-June 2019), respectively, the company’s press service told Interfax-Ukraine.
Volumes of transportation of ferrous metals in the first half of 2020 amounted to 4.02 million tonnes (3.83 million tonnes in January-June 2019), shipments of fluxing materials totaled 1.44 million tonnes (1.12 million tonnes in January-June 2019), and those of coke 1.26 million tonnes (0.99 million tonnes in January-June 2019).
The company said that despite the economic crisis caused by the coronavirus (COVID-19) pandemic it had signed new contracts on freight transportation in the second quarter of 2020.
A total of 3,516 freight cars underwent scheduled maintenance over the first six months of 2020.
Lemtrans is the largest private operator of railway rolling stock in Ukraine. Its core business is organization of transportation by own rolling stock, rendering transport and forwarding services, information support for cargo movement, as well as rolling stock repairs.
Lemtrans fully belongs to SCM Group.

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FREIGHT TRANSPORTATION ON DNIPRO RIVER INCREASES BY 31.5%

Freight transportation on the Dnipro River in January-July 2019 increased by 31.5% compared to the same period in 2018, up to 5.45 million tonnes.
As the Rivers of Ukraine Association reported on Facebook with reference to the Sea Ports Authority of Ukraine, the number of ship passages along the Dnipro totaled 5,775 voyages.
Transportation of metals in January-July increased by 33.9%, to 835,200 tonnes, grain shipments rose by 2.3 times, to 2.2 million tonnes. Those of building materials and other goods decreased by 5.7% to nearly 2.394 million tonnes. At the same time, fuel transportation decreased by 32.2%, to 21,900 tonnes.
As reported, 16.5 million tonnes of freight was transported by river in Ukraine in 2018. Freight traffic on the Dnipro last year increased by 22.4% from 2017, to about 9.9 million tonnes.
In 2016-2018, transportation of grain freight across the Dnipro grew by 180% and that of construction freight by 130%, according to the Ministry of Infrastructure of Ukraine.
The volume of traffic by inland waterways in 2016-2018 increased by 112% compared with 2013-2015, to 9.9 million tonnes in 2018.

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FREIGHT TRANSPORTATION ON DNIPRO RIVER INCREASES BY 42%

Freight transportation on the Dnipro river in January-June 2019 increased by 42% compared to the same period in 2018, to 4.2 million tonnes.
As the Rivers of Ukraine Association reported on Facebook with reference to the Sea Ports Authority of Ukraine, the number of ship passages along the Dnipro decreased by 23%, to almost 4,500 voyages.
Transportation of metals in January-June increased by 45%, to 647,000 tonnes, grain shipments rose by 115.2%, to 1.722 million tonnes, those of building materials and other goods by 7.5% to nearly 1.819 million tonnes. At the same time, fuel transportation decreased by 51%, to 13,000 tonnes.
As reported, 16.5 million tonnes of freight was transported by river in Ukraine in 2018. Freight traffic on the Dnipro last year increased by 22.4% from 2017, to about 9.9 million tonnes.
In 2016-2018, transportation of grain freight across the Dnipro grew by 180% and that of construction freight by 130%, according to the Ministry of Infrastructure of Ukraine.
The volume of traffic by inland waterways in 2016-2018 increased by 112% compared with 2013-2015, to 9.9 million tonnes in 2018.

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