Business news from Ukraine

“Ukrzaliznytsia” will launch a new route – Prague – Chop

Ukrzaliznytsia in cooperation with Czech carriers plans to launch a train from Prague to Chop.
As noted in the message in the telegram channel of Ukrzaliznytsia, the start date of this train will be announced additionally.
In addition, from December 11, 2022 will run trains: Vienna (Austria) – Chop and Kosice (Slovakia) – Chop.
In addition, the following trains run through the Chop station:
– No. 59/60 Kiev – Chop;
– No. 749 Kiev – Vienna;
– No. 4/3 Zaporizhzhya – Uzhgorod;
– No. 45/46 Uzhgorod – Kharkiv;
– No. 81/82 Kiev – Uzhgorod;
– No. 749/750 Kiev – Uzhgorod;
– No. 265/266 Kovel – Uzhgorod (newly appointed).

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“Ukrzaliznytsia” increased freight transportation by 3.3%

“Ukrzaliznytsia has increased cargo transportation by rail in October to 12.06 million tons, which is by 0.38 million tons, or 3.3%, more than in September, said deputy director of the department of commercial work “UZ” Valery Tkachev at a meeting with industry participants on Wednesday.
“In particular, 5.2 million tons (-0.137 million tons, or -0.3% compared to September 2022) were transported in export traffic. From March to October 2022, monthly rail freight volume increased from 8.299 million tons to 12.06 million tons per month (up +3.7 million tons per month or +45.3%). But this monthly volume of transportation, unfortunately, is much lower than the pre-war level,” Tkachev said on Facebook.
According to him, the transport of grain in October rose to 3.6 million tons (+197.8 thousand tons, or 5.8%), cement – up to 288.6 million tons (+21.9 thousand tons, or 8.2%), coal – up to 2.2 million tons (+18.7 thousand tons, or 0.8%), construction materials – up to 1.9 million tons (+85.6 thousand tons, or 4.6%).
At the same time, transportation of iron ore / manganese ore decreased to 1.4 million tons (-64.4 thousand tons, or 4.3%), and ferrous metals – up to 628.5 thousand tons (-63.8 thousand tons, or 9.2%), said the representative of UZ.
He also informed that in October railcar queue in the direction of western border crossing points has reduced by 1674 wagons, or 9%: from 18.2 thousand to 16.6 thousand at the beginning of November.
At the same time, according to Tkachev, the volume of orders at almost all border crossings significantly exceeds their capacity, so the Transport Logistics Center (TLC) is forced to apply reduction factors to match all orders received from exporters.
“Currently, all orders received from exporters before the 20th of the month preceding the transportation are processed by the CTL and partially agreed upon by foreign carriers and JSC “Ukrzaliznytsia”, – added Tkachev.
In addition, some foreign carriers temporarily suspended coordination of orders because of the large queue of loaded cars, said Deputy Director.

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Ukrzaliznytsia to equip railway stations with generators and water heaters

JSC Ukrzaliznytsia will install electric generators and heaters received from the Red Cross Society of Ukraine at railway stations.
As reported in the Telegram channel of UZ, the generators will operate at stations in Zaporozhye (two stations), Vinnitsa, Khmelnitsky, Kamenetz-Podolsky, Berdichev, Rivne, Krivoy Rog (two stations), Kovel, Kolomyia, Mukachevo, Truskavets, Morshyn , Zhmerinka, Ivano-Frankivsk, Chernivtsi, Chop, Uzhgorod, Zhytomyr, Mironovka, Chernihiv, Trostianets, Sumy, Kharkiv, Odessa, Cherkassy, ​​Kropyvnytskyi, Ternopil, Lvov (two stations) and at the stations “Taras Shevchenko” and “Darnitsa” in Kyiv.
The total cost of humanitarian aid is about UAH 12 million.
In addition, last week Ukrzaliznytsia received 154 water heaters from the Ukrainian Red Cross Society, which were distributed among 79 railway stations.

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Ukrzaliznytsia exported record 2.25 million tons of grain cargo since beginning of war – Tkachev

JSC “Ukrzaliznytsia” (UZ) for the period September 1-21, 2022 exported a record 2.25 million tons of grain cargo since the beginning of Russian aggression, which is 40.5% more than in August (1.6 million tons), the deputy director said Department of commercial work of UZ Valery Tkachev.
“We have set another record for the transportation of goods for export – 2.25 million tons, and this is only for the 21st day of September. I think that by the end of the month we will be able to reach the figure of 2.5 million tons, maybe we will try to transport up to 3 million tons,” Tkachev said during an online meeting with industry participants on Thursday.
According to him, the company achieved such growth due to the increase in transportation of agricultural products to three Ukrainian seaports, unblocked under the Istanbul grain agreements.
At the same time, he clarified that 1,516 thousand tons of agricultural products were delivered to ports for further shipments to third countries (for the whole of August, almost half as much – 795 thousand tons), while 732 thousand tons of grain were transported through land border crossings on the western border (in August – 805 thousand tons, -9%).
According to him, since the beginning of September, Ukrzaliznytsia has loaded a total of 1.89 million tons of grain cargo into wagons (for the whole of August – 1.74 million tons), which is 27.5% of the total loaded volume for this month of 6.32 million tons (9.28 million tons were shipped for export in August).
The representative of UZ also clarified that for September 1-21, the average daily loading of the company’s wagons amounted to about 90 thousand tons (in August – 56 thousand tons), reaching a record since the beginning of Russian aggression. So, on September 20, a record 122 thousand tons of agricultural products were loaded into the cars, on September 21 – 101.4 thousand tons, on September 19 – 112.8 thousand tons, on September 18 – 83.2 thousand tons.
“Now the loading through the network has also grown significantly, in recent days we have been loading more than 100 thousand tons per day. That is, the loading through the network is growing, and this is all thanks to the opening of our grain corridor,” the deputy director emphasized during the meeting.
Over the 21st day of September, Ukrzaliznytsia also exported 89.7 thousand tons of sunflower oil, as well as 132.7 thousand tons of all kinds of meal, through land border crossings and ports.
Tkachev clarified that over the specified period, the average daily handling of wagons of all types at border crossings sank by 6% – to 1,731 thousand wagons compared to 1,848 thousand wagons on average in August, while the transfer of grain wagons amounted to 536 wagons per day, which 14% more than the average for August (469 grain wagons per day).
According to him, the most intensive movement of wagons occurs through the Izov border crossing – 157 wagons / day, Batevo – 80 wagons / day, Yagodin – 48 wagons / day, Vadul-Siret – 47 wagons / day.
The UZ representative clarified that by September 21, the total queue of wagons of all nomenclatures at the border had decreased by 24% (or by 6.64 thousand wagons) compared to September 1, to 18.96 thousand units. from 25.12 thousand units At the same time, by September 21, there were 4.78 thousand grain wagons in the queue, while on September 1 this figure was 8.48 thousand wagons with grain (-44%, or by 3.69 thousand wagons).
Tkachev noted that the queue for the delivery of grain cargo, if you look at the availability of wagons and the daily delivery, is about nine days of waiting.
“At the same time, it is clear that we have crossings where the situation is more difficult, where you have to stand for 20 days, and there are places where there is no queue. In general, we have a queue of 9 days for the presence of a wagon fleet,” the UZ representative specified.
He also stressed that after the reorientation in early September of the main flow of grain cargo in the direction of Ukrainian seaports, UZ had the opportunity to additionally receive grain cargo for export through land border crossings on the western borders of Ukraine.

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State-run Ukrzaliznytsia increases cargo transportation in August

In August, Ukrzaliznytsia increased the volume of cargo transportation by 4.5%, from 10.318 million tonnes to 10.787 million tonnes, Oleksandr Kamyshin, head of the company’s board, said on Telegram on Thursday evening.
“There is a significant increase in grain, our strategic position. Up to 42% was transported, primarily due to the unblocking of seaports,” he wrote.
According to information provided by Kamyshin, 2.088 million tonnes were transported in August compared to 1.447 million tonnes in July.
In addition, the transportation of oil products increased by 2.6%, to 556,000 tonnes, and construction materials – by about 10%, the head of the board of Ukrzaliznytsia said.
According to him, the transportation of iron ore decreased by 6.8%, to 1.895 million tonnes, as well as ferrous metals – by 10%.
“But here the reason is clear – unfortunately, the decline in steel production in the world continues. But the decrease in coal transportation by 10% really worries me,” Kamyshin said.
He stressed that Ukrpzaliznytsia was fighting for every tonne of cargo and increasing the export-import potential of the railway by building new sections, opening new junctions with neighboring countries and increasing the capacity of western crossings.

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EBRD to additionally allocate EUR98.5 million to support liquidity of Ukrzaliznytsia

The European Bank for Reconstruction and Development (EBRD) has amended the agreement on the ongoing Dolinskaya – Nikolaev – Kolosovka Railway Electrification Project, which will allow additional use of part of the EBRD loan in the amount of EUR98.5 million to provide liquidity to finance critical needs of JSC “Ukrzaliznytsya” (UZ).
Finance Minister Serhiy Marchenko, EBRD Director for Eastern Europe and the Caucasus Matteo Patrone, and Ukrzaliznytsia Board Chairman Oleksandr Kamyshin signed the corresponding documents on Thursday, the Finance Ministry reported.
The repurposed portion of the EBRD loan will be secured by a guarantee from the French government or another G7 country.
“Damage and destruction of the railway infrastructure, loss of Ukrzaliznytsia’s rolling stock have a negative impact on ensuring the smooth operation of the society. Therefore, an increase in the EBRD loan to support the liquidity of Ukrzaliznytsia will help maintain the stability of its work in war conditions,” Marchenko commented on the agreement.
As reported, earlier this year, on June 10, similar amendments to the agreement were already signed, according to which EUR50 million was directed to support the liquidity of Ukrzaliznytsia. Thus, the total volume of the EBRD loan for the liquidity of UZ reached EUR 148.5 million.

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