Business news from Ukraine

EU proposes to update rules on transportation of cats and dogs

The European Commission is proposing to implement the biggest reform of EU animal welfare rules in 20 years, according to the European Commission’s website on Thursday, December 7.
“The Commission is proposing for the first time new EU rules on the welfare and traceability of dogs and cats bred, kept and sold as pets for economic purposes,” the statement said.
The package includes a revision of the EU’s current rules on animals in transit, which will improve the welfare of the 1.6 billion animals transported to and from the EU each year.
The new rules will establish for the first time common EU standards for the breeding, keeping and treatment of dogs and cats in kennels, pet shops and shelters. The traceability of pets will also be strengthened through mandatory identification and registration in national databases.
Finally, the Commission proposes further steps to implement the European Citizens’ Initiative (ECI) “Europe without Fur”, which calls for an EU ban on fur farming and the sale of products containing such fur.

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UZ increased volume of grain and milled products transportation by 5.8%

In January-October 2023, Ukrzaliznytsia JSC (UZ) increased the volume of grain and milling products transportation by 5.8%, or 1.32 mln tonnes compared to the same period of 2022, to 24.26 mln tonnes, according to the UZ report.

According to the document, 17.55 mln tons of grain and milled products were transported in export traffic in 10 months, which is 0.7% or 129 thsd tonnes less compared to the same period of 2022.

In total, 10.46 mln tons of grain cargo were transported by rail to ports in 10 months, which is 15% less than in the same period of 2022. At the same time, the volume of transportation in the direction of border crossings amounted to 7.09 mln tonnes (31% more).

The volumes of grain cargo transportation to ports have been growing since August, due to the launch of the temporary sea corridor to the ports of Greater Odesa, UZ said.

It is specified that in October, the share of grain transportation towards ports amounted to 56.8%.

Earlier it was reported that 151 vessels have used the Ukrainian sea corridor established by the Ukrainian Navy since August 10, 2023, 121 of which have already used it with 4.4 mln tons of export cargo.

According to the forecast of Yuriy Vaskov, Deputy Minister of Communities, Territories and Infrastructure Development, if the sea corridor is fully operational, more than 50% of export shipments in 2024 will be carried out by sea.

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UZ increased volume of cargo transportation by 3%

In September, Ukrzaliznytsia JSC (UZ) increased the volume of cargo transportation in all types of traffic by 3% compared to the same period last year, to 12.035 million tons, according to preliminary data, the press service of UZ reported on the company’s website.

“The overall growth in transportation was due to a 35.5% increase in domestic freight traffic, up to 7.896 million tons,” the statement said.

At the same time, export transportation by rail in September decreased by 31.2% compared to the same period last year – to 3.578 million tons. In particular, exports of grain cargo decreased almost threefold to 1.072 million tons. At the same time, the volume of iron and manganese ore exports increased by 50.5% in September compared to September 2022, to 1.453 million tons, the report says.

In September, imports by rail decreased by 18% to 518.5 thousand tons, while transit traffic, on the contrary, increased by 2.3 times to 43.2 thousand tons.

In terms of the range of cargoes, mineral building materials are the leaders in terms of volumes: in total, their transportation increased by 77.3% in September 2023 compared to the same period last year – up to 3.310 million tons. In domestic traffic, the growth was 88% to 3.087 million tons.

“September cargo transportation showed a slight increase in total volume, however, for objective reasons, we have negative indicators of export transportation, in particular, strategically important grain cargo. “Ukrzaliznytsia once again emphasizes its readiness to transport all the necessary volumes and calls on partners from neighboring countries to jointly develop railway logistics between countries and strengthen business relations,” the statement quoted UZ Board member Vyacheslav Yeryomin as saying.

Earlier it was reported that in January-August, Ukrzaliznytsia JSC (UZ) transported 10.5% less cargo than in the same period last year – 94.9 million tons. At the same time, in August the volume of transportation amounted to 12.3 million tons, which is 13.8% more than in August last year.

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“Ukrzaliznytsia” has reduced freight transportation volumes by 12.4%

JSC “Ukrzaliznytsia” (UZ) in the first half of 2023 transported 70.5 million tons of cargo, which is 14.5 million tons or 12.4% less compared to the same period of 2022, according to the UZ report on the results of freight work for the first half of the year.

According to statistics, 28.2 million tons of cargo, or 40% of all volumes, were transported in export traffic in the first half of 2023, which is less by 5.2 million tons or 15.4% compared to the first half of 2022.

It is noted that the volume of transportation of iron and manganese ore fell by 44.7%, or 7.003 million tons – to 8.672 million tons.

“Russia’s blockade of sea ports led to a significant restriction of exports. Cargo flows were redirected mainly through Ukraine’s western international railroad crossings to EU countries. Thus, 90% of ore exports are directed through western border crossings,” the UZ report states.

Exports of ferrous metals fell in the first half of the year by 37.8%, or 1.410 million tons – to 2.322 million tons, and although in March-May it significantly exceeded last year’s figures, in June this gap narrowed due to the destruction of the Kakhovska HPP and reduced production of enterprises in Nikopol, Zaporizhzhya and Kryvorizhzhya districts.

Also, by the end of the first half of the year, the export by rail of minstroymaterials decreased – by 56.9%, or 924.3 thousand tons – to 701 thousand tons.

At the same time, in January-June this year, the volume of grain transportation increased – by 44.5% or 4.027 million tons – up to 13.072 million tons and vegetable oil – by 22.5% or 135 thousand tons – up to 736 thousand tons.

In addition, in the first half of 2023, the volume of cement transportation increased – by 33.4% or 130.7 thousand tons – up to 522.4 thousand tons.

As reported, in June this year UZ transported 12.4 mln tons of cargo, which is 31.9% more compared to June 2022 and 7.9% more compared to May 2023, including export shipments of 4 mln tons (+24.3% and +5.6%, respectively).

Transportation of grain cargoes in June 2023 increased to 2 million tons (+48.4% vs. June 2022), construction materials – to 3.1 million tons (+87%), hard coal – to 2.3 million tons ( +16.3%), iron and manganese ore – to 2 million tons. (2,8%).

For comparison, in May this year, Ukrzaliznytsia transported grain cargo 1.83 million tons, construction materials – 2.5 million tons, hard coal – up to 2.22 million tons, iron and manganese ore – 1.96 million tons.

As of today, UZ has 19 railway border crossings with EU countries and Moldova, of which 14 main ones are functioning and provide freight transportation in the direction of: Poland (4 crossings), Romania (2 crossings), Slovakia (2 crossings), Hungary (2 crossings) and Moldova (4 crossings).

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“Nibulon” has purchased 30 trucks from Scania Ukraine for grain transportation

Nibulon JV LLC (Mykolaiv), one of the largest operators in the Ukrainian grain market, and Scania Ukraine LLC have signed an agreement to purchase 30 Scania R450 trucks, the grain trader’s press service reports.
“The renewal of the fleet is an integral part of ensuring stable exports of Nibulon. In this case, we are talking about increasing the logistics potential for the transportation of grain by land,” the company wrote on Facebook on Monday.
The grain trader noted that due to the reorientation of export chains during the war and the almost complete loss of river navigation, Nibulon’s logistics business is forced to use combined routes, including grain transportation by truck.
“Nibulon has promised to minimize the load on the roads and minimize its environmental impact. Therefore, the grain is transported by trucks on a short arm to elevators with existing rail shipment capacities.
“Nibulon and Scania Ukraine have been cooperating since 2012. In 2022, Scania Ukraine supplied the grain trader with 15 Scania G400 Euro 5 tractors under the Scania SilverLine program, which includes the purchase of equipment on lease, a service contract, driver training, and a fleet monitoring system. The financing was provided by Scania Credit Ukraine, a member of the Scania Group.
The distribution company Scania Ukraine has been operating in the Ukrainian market since 1998 (before that, it had a representative office since 1993). It has nine service centers (including two of its own in Kyiv and Lviv region).
SCANIA is part of Volkswagen Truck & Bus GmbH and is one of the world’s leading manufacturers of trucks and buses over 16 tons. The company employs 46 thousand people and sells its products in more than 100 countries.
Nibulon JV LLC was established in 1991. It is one of the largest operators in the country’s grain market. It has elevator facilities with a total capacity of about 2 million tons, as well as its own transshipment terminal in Mykolaiv with a capacity of 5 million tons.

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Passenger transportation by rail to EU increased 2.3 times

JSC “Ukrzaliznytsia” (UZ) in January-May this year carried in communication with the European Union 2.3 times more passengers (786 thousand) compared to the same period of 2022, reported the press service of UZ in Telegram-channel.
In addition, for five months carried 6.4% more passengers than for the same periods of 2016-2019, when in communication with the EU and back by rail was carried a total of 735 thousand people, calculated in the press service.
“In 5 months of 2023, Ukrzaliznytsia carried more passengers in communication with the EU than in the same period cumulatively during the previous four (dokovidnye) years,” said in the message of UZ on Wednesday.
It is specified that in the five months of 2016 was carried 19.8 thousand passengers, 2017 – 98.2 thousand, 2018 – 230.4 thousand, 2019 – 387.2 thousand, 2020 – 171.7 thousand people. Data for January-May 2021 are not given, but in 2022 during this period UZ carried 341.6 thousand passengers in the EU.
The Company notes that there is a clear trend of Ukrainians returning home: the number of people who have left the country since the beginning of 2023 is 369 thousand, and in the opposite direction – to Ukraine – 417 thousand people.
In the UZ also clarified that if in 2016 in communication with the EU were only 8 trains, now their number has increased to 27, of which 15 formed “Ukrzaliznytsia”, and the rest – foreign carriers.
The company recalled that given the increase in demand since last year due to the full-scale invasion of Russia, UZ is expanding connections with other countries, in particular launched seven new trains: № 19/20, № 23/24 “Kiev-Khelm”, № 32/31 “Zaporozhye-Permyshl”, № 53/54, № 89/90 “Kiev-Permyshl”, № 73/74 “Kharkiv-Permyshl” and № 93/94 “Kharkiv-Khelm”.

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