Business news from Ukraine

Business news from Ukraine

Ukrzaliznytsia has raised rate for grain cars by 19%—to 2,500 UAH per day

JSC Ukrzaliznytsia (UZ) updated the rates for the use of its own railcars for transportation on the 1,520 mm gauge track effective April 1, 2026, and increased the tariff for grain cars to 2,500 UAH/day (excluding VAT), which is 19% higher than the March rate, according to the company’s website.

According to the published rates, in the food transportation segment, the cost of using tank cars rose by 10.7%—from 1,400 UAH to 1,550 UAH per day. At the same time, the fee for using railcars for transporting flour (conditional type 972) remained unchanged in April—203 UAH per day.

Ukrzaliznytsia also revised rates for flatcars: the rate for 40-foot flatcars increased to 1,450 UAH/day (+200 UAH), while the rate for 60-foot flatcars remained unchanged at 1,100 UAH/day, while the rate for 80-foot platforms decreased to 1,550 UAH/day (-100 UAH). The rate for timber-carrying platforms increased by 100 UAH to 1,660 UAH/day.

Meanwhile, the fee for using the most common type of rolling stock—open cars—rose by 20.6% in April, to 1,750 UAH/day, compared to 1,450 UAH in March. The cost of using ore cars increased 3.2-fold, to 865 UAH/day, compared to 270 UAH in the previous month.

Rates for universal flatcars (2,400 UAH/day) and tanks for transporting liquefied gas (320 UAH/day) remained virtually unchanged, according to JSC “Ukrzaliznytsia.”

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OMZ Karpaty to produce 300 grain cars

In 2024, the Karpaty Research and Mechanical Plant (Lviv region) will produce 300 grain carriers at the request of the USAID Economic Support for Ukraine project, which will account for 45% of the company’s annual workload, the donor organization’s press service reported on Facebook.

The USAID reminded that in 2023, at their request, the plant manufactured 50 such cars for one of the largest grain market operators in Ukraine, JV Nibulon LLC (Mykolaiv). In 2024, the Project ordered 300 railcars for other companies involved in the export of agricultural products.

According to the report, OMZ Karpaty produces three railcars per day weighing 23.5 tons. The main component of the car body is rolled metal of European origin purchased from Ukrainian suppliers. The rest of the components, such as the railcar axle, solid-rolled wheel, side frame, beam, shock and traction device, brake equipment and other parts, are made in Ukraine.

“During a full-scale war, orders for grain cars account for 75% of what we do. Thanks to the USAID project, we received an order last year and fulfilled it on time: we manufactured 50 railcars. This means that 650 of our employees had jobs, received salaries, and we, as a business, paid taxes to the budgets of various levels on time. This is one example of how international assistance works for the Ukrainian economy,” said Oleksandra Bodor, Marketing Director of OMZ Karpaty.

According to him, the plant currently has a portfolio of orders through August 2024. In addition to grain carriers, another promising area is the production of cement carriers needed to restore Ukraine’s critical infrastructure and housing stock.

“In 2023, all (three) railcar manufacturing plants in Ukraine produced 1967 railcars. OMZ Karpaty became the leader: the company produced 567 railcars for the Ukrainian market, which is 5% more than in 2022. Today, the company employs more than 650 people,” the donor organization said.

As reported, the USAID project is implementing the Agricultural Resilience and Livelihoods Program (AGRI-Ukraine), with a budget of $350 million. Within the framework of the AGRI-Ukraine initiative, the USAID project cooperates with public and private enterprises to attract investment in grain transportation and transshipment.