In 2024, the cost of exporting grain cargo by rail in Ukraine decreased from $21.3/ton to $14-14.5/ton, Valery Tkachev, Deputy Director of Transportation Technology and Commercial Work Department at Ukrzaliznytsia (UZ), wrote on Facebook.
The main reason for the reduction in logistics costs, he said, was the reduction in the cost of using grain wagons.
“Over the course of the year, the cost of using grain wagons decreased from UAH 1688 per day to UAH 280-330 per day, a 5-5.5-fold reduction,” Tkachev emphasized.
According to him, as of November, UZ has a surplus of 5000-7000 grain cars.
In January-October 2024, Ukrzaliznytsia (UZ) increased its cargo transportation by 21.9% compared to the same period in 2023, to 146.94 million tons.
“In January-October 2024, Ukrainian rail transport transported 146.94 million tons, which is 26.4 million tons, or 21.9%, more than in the same period last year. In October, the volume of cargo transportation amounted to 15.06 million tons, which is 8.8% more than in September,” UZ said in an analytical note prepared for the meeting of the Exporters’ Office on Thursday.
The volume of transportation in export traffic for 10 months of 2024 increased by 64.2% to 71.07 million tons. At the same time, exports accounted for 48% of total transportation, while in the same period in 2023 it was 36%.
In the first 10 months of the year, grain cargo took the first place in total exports – 28.85 million tons (40.6%). Transportation volumes of iron and manganese ore amounted to 27.67 million tons (38.9%), ferrous metals – 4.33 million tons (6.1%), and construction materials – 3.49 million tons (4.9%).
“In the current environment, the steel and agricultural sectors retain the status of the mainstay of Ukrainian exports. The sea routes remain the main channel for increasing the supply of Ukrainian goods to foreign markets,” UZ analytical note says.
It is noted that the dynamics of cargo transportation volumes is affected by massive shelling and the state of the energy sector.
Earlier it was reported that since the beginning of the year, UZ has increased the volume of cargo transportation by almost a quarter, reducing it in September compared to August.
In the period from September 25 to September 27, at the checkpoint “Mohyliv-Podilskyi – Otacs”, there may be traffic restrictions due to the installation of weighing complexes, namely
– 25.09 – in the direction of “entry to Ukraine”;
– 26-27.09 – in the direction of “exit from Ukraine”.
During the repair works, the traffic of commercial vehicles may be limited to one lane.
In January-May 2024, Ukrzaliznytsia (UZ) increased the volume of cargo transportation by 29.9% to 75.43 million tons compared to the same period in 2023.
At the same time, according to an analytical note prepared for a meeting of the Exporters’ Office on Friday, in May, the volume of grain cargo transportation to ports for the first time reached the level that preceded the full-scale invasion. Exports of ore, building materials and cement also increased significantly.
“The increase in transportation volumes is due to the activity of cargo exports, largely due to the opening of sea routes. At the same time, massive rocket attacks have significantly affected the state of the energy sector, certain industries, and transport infrastructure, which affects the dynamics of cargo transportation,” the note says.
The volume of cargo transportation by Ukrzaliznytsia in export traffic in January-May increased by 56.7% to 37.97 million tons. Over the five months, the share of rail freight exports increased by almost 9 percentage points to 50.4% of the volumes transported by various modes of transport. In the first five months of 2023, it was 41.7%.
In May, the volume of cargo transportation for export increased by 7.4% compared to April to 7.55 million tons. In May 2023, this figure doubled (+3.76 million tons).
According to the main nomenclature of export transportation in May, grain cargo took the first place – 3.28 million tons (43.4% of the total volume of cargo transported by rail for export in May), iron and manganese ore took the second place – 2.7 million tons (35.8%), and ferrous metals took the third place – 410 thousand tons (5.5%).
Thanks to the work of the Ukrainian Sea Corridor and the gradual resumption of production at the mining and metallurgical enterprises, the export of iron and manganese ore has increased significantly, UZ noted.
In addition, it is reported that the volume of grain cargo transportation towards ports in May for the first time reached the level that preceded the full-scale invasion. The company transported 2.91 mln tons, which is 0.6% more than in February 2022. In the direction of the land crossings, 361.7 thousand tons were transported, which is 5.6 times more than in February 2022.
The volume of grain cargo transportation for this period in 2024 increased by 38.9% compared to the same period last year – up to 16.17 mln tons. In May, the volume of grain exports amounted to 3.28 million tons, up 10.1% compared to April.
The volume of iron and manganese ore exported in the first five months of 2024 increased 2.1 times compared to the same period in 2023, to 15.2 million tons. In May, the volume of ore exports increased slightly compared to April, by 2.8% to 2.7 million tons. The company transported 1.39 million tons (51.6% of exports) to seaports and 1.3 million tons via land crossings.
Exports of ferrous metals increased by 4% to 2.02 million tons over the reporting period. In May, 414.6 thousand tons of ferrous metals were transported in export traffic, up 1% compared to April.
The volume of exports of ferrous metals in the direction of seaports amounted to 305.6 thousand tons (73.7%), and 109 thousand tons through land crossings. It is noted that in May-2024 compared to May-2023, the volume of exports of ferrous metals fell by 12.2% (57.6 thousand tons).
The volume of vegetable oil exports for 5 months increased by 20.3% compared to the same period last year – up to 770.9 thousand tons. In May, it amounted to 195.1 thsd tonnes, up 28.7% compared to April.
As noted, the oil is exported mainly through land crossings, through which 140.4 thsd tonnes (72% of the total) were exported in May, and 54.7 thsd tonnes through seaports. Compared to May-2023, in May-2024, the volume of vegetable oil exports increased by 68.6% (+79.4 thsd tonnes).
Exports of building materials increased to 1.22 million tons. In May, the highest export volume of construction materials was recorded – 358.4 thousand tons, which is 11% more than in April.
Cement exports increased by 40.6% to 566.5 thousand tons over 5 months. In May, the highest volume of cement exports over the past five years was recorded – 151.4 thousand tons, which is 10.2% more than in April 2014.
“For several years in a row, there has been a trend of gradual growth in cement exports by rail. In the direction of the EU, cement is exported through land border crossings,” UZ noted.
In general, exports through land border crossings decreased by 8.9% over five months compared to the same period last year to 13.33 million tons. In May, it amounted to 2.69 million tons (35.6% of total exports), which is 3.6% less than in April.
At the same time, exports through seaports increased 2.6 times to 24.61 million tons. In May, it amounted to 4.86 million tons (64.4% of total exports), up 9.7% compared to April. The bulk of cargo went to the ports of Greater Odesa (92%) and only 8% to the Danube ports.
In January-May 2024, Ukrzaliznytsia (UZ) transported 75.4 million tons of cargo, up 30% from the same period in 2023, the UZ press service said on Monday.
About half of all cargo (38 million tons) was transported for export, which is 57% more than in January-May 2023, the report said.
“We ensure stable operation and transport commercial cargo in full. According to the results of five months, we have quite significant indicators both in total transportation volumes and in the strategic export traffic for the country. In particular, we increased grain exports by 39% compared to last year. We are ready to continue to fully meet the country’s economy and business transportation needs,” the statement quotes Yevhen Liashchenko, Chairman of the Board of UZ, as saying.
In January-May 2024, the volume of transportation in domestic traffic increased by 6.7% compared to January-May 2023 to 32.9 million tons. Cargo imports increased by 68.5% to 4.3 million tons, while exports increased by 57% to 38 million tons.
As noted, iron and manganese ore led the way in the transportation volumes for the period under review – 19.3 million tons; grain cargo – 18.8 million tons; coal – 11.5 million tons; and building materials – 10.8 million tons.
Earlier it was reported that in January-April 2024, UZ increased the volume of cargo transportation by 28.7% compared to the same period in 2023 to 59.9 million tons, while in the export direction this figure increased by 48.8% to 30.4 million tons.
In January-March 2024, Ukrzaliznytsia JSC (UZ) increased export transportation to ports by 2.4 times compared to the same period in 2023 – up to 15.347 million tons, while reducing the volume of transportation through land crossings in export traffic by 11.9% to 8.041 million tons, according to an analytical note of the company following the meeting of the Exporters’ Office.
In total, Ukrzaliznytsia transported 44.69 million tons of cargo in the first quarter of this year, which is 28.7% more than in the first quarter of 2023. Export transportation accounted for 52.3%, or 23.9 million tons, up 50.6% year-on-year.
In January-March, the company’s export transportation volume of iron and manganese ore increased 2.4 times year-on-year to 9.89 million tons, grain cargo – by 18.4% to 9.9 million tons, and ferrous metals – by 13% to 1.19 million tons.
In addition, the volume of vegetable oil transportation in export traffic in January-March increased by 7.5% to 424.2 thousand tons, construction materials – by 1.8 times to 545 thousand tons, cement – by 49.2% to 277.8 thousand tons.
Earlier, Oleksandr Kubrakov, Vice Prime Minister for the Reconstruction of Ukraine, Minister of Community Development, Territories and Infrastructure (Ministry of Reconstruction), said that in March 2024, Ukrzaliznytsia transported 16 million tons of cargo in all directions, which is a third more than in March 2023 and 10% more than the record figures for February 2024, when the volume of traffic reached 14.5 million tons.
