Business news from Ukraine

Business news from Ukraine

“Ukrzaliznytsia” increased grain cargo transportation for export by 6%

In 2023, Ukrzaliznytsia JSC transported 30.58 million tons of grain cargo, up 5.9%, or 1.708 million tons, from a year earlier, said Valery Tkachev, deputy director of the commercial work department of UZ, at a meeting with agricultural market participants on Thursday.

According to him, 22.729 mln tons of grain crops were transported for export by rail, which is 178 thsd tonnes more than in 2022. Of these, 14.324 mln tonnes (-4.9%) were shipped to the ports, and 8 mln 405 thsd tonnes (+12.2%) – to the western border crossings.

“Before the embargo on imports of Ukrainian grain by neighboring countries was imposed in April, 900 thsd tonnes to 1 mln tonnes of grain were transported by rail per month. After the ban was imposed, the volume was almost halved. The work of ports in 2023 was significantly affected by the uncertainty of the “grain corridor”, Tkachev stated.

As reported, Ukrzaliznytsia transported 63 million tons of cargo for export in 2023.

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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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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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