Business news from Ukraine

Business news from Ukraine

Ukrzaliznytsia has sent more than 10 intermodal trains with agricultural goods to Polish ports

Ukrzaliznytsia (UZ) has sent more than 10 intermodal trains to the Polish ports of Gdansk and Gdynia, Valery Tkachev, deputy director of UZ’s commercial work department, said at a meeting with grain market participants on Thursday.

“The containers were mainly used to transport grain cargo and milling products. The transportation was carried out as part of the Intermodal Train service. Such trains follow a strict schedule and have convenient connections at the Ukrainian-Polish border,” he explained.

According to him, the trains departed from Odesa-Liski, Dnipro-Liski and Vinnytsia stations. The operator of the transportation through Ukraine was the Liski Transport Service Center branch of Ukrzaliznytsia, and UZ Cargo Poland in Poland.

UZ also said that it is considering launching the train from Kyiv as well as from other stations if the shipper orders the service regularly.

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Ukrzaliznytsia will speed up speed of its own grain carriers

Starting November 1, Ukrzaliznytsia (UZ) will change the average speed of its own grain hoppers to increase their competitiveness in the freight market, Valery Tkachev, deputy director of UZ’s commercial operations department, said at a meeting with grain market participants on Thursday.

Thus, the following speeds will be applied to grain carriers moving towards port stations: 111 km/day for carload shipments (the current rate is 50 km/day), and 253 km/day for route shipments (against the current 138 km/day).

The movement of grain carriers towards the western border crossings will also accelerate. It will increase from 50 to 61 km/day for group shipments and from 50 to 187 km/day for route shipments.

The average speeds of grain carriers in domestic traffic and imports have been revised. For freight shipments, the figure will be 57 km/day compared to the current 50 km/day, and for route shipments – 128 km/day (currently 118 km/day).

These changes are expected to increase UZ’s competitive advantage in the grain transportation market.

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“Ukrzaliznytsia” put up 300 grain carriers for auctions

JSC “Ukrzaliznytsia” announced Dutch auctions through “Prozorro.Sales” 300 grain carriers of the branch “Center of transport logistics” for the transportation of agricultural products to ports.

According to the message on the electronic trading platform, 40 lots of 5 wagons and 10 lots of 10 wagons in group shipments in the direction of ports (except for Izmail and Reni) are offered at the auction. The starting rate is 600 UAH/day and may decrease to 354 UAH/day.

Loading is possible in the period of October 19-31, 2023.

The auction is scheduled for October 13. Applications for participation in the auction are also accepted until October 13 inclusive.

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DAI Global LLC will support Ukrzaliznytsia in developing grain exports

Ukrzaliznytsia (UZ) and DAI Global LLC, a development company working with international development agencies, have signed a memorandum on the implementation of the international technical assistance project Economic Support for Ukraine, which provides for the development of Ukrainian grain exports by rail, the UZ press service said on Friday.

“Our common task is to increase grain exports by developing solutions that will help increase and demonstrate the efficiency and profitability of Ukraine’s rail export logistics,” said Yevhen Lyashchenko, Chairman of the Board of UZ.

According to the release, the memorandum refers to support in the repair and restoration of grain hoppers and the purchase of locomotives, as well as reducing grain transportation costs through improved cross-border cooperation, joint actions that reduce costs and increase the efficiency of weighing and scanning cargo, and improving transshipment equipment.

In addition, the memorandum provides for the provision of comprehensive services for the design and construction of priority border crossing points (BCPs) and other areas and projects that will increase the ability to export agricultural products.

Within the framework of the project, DAI Global will primarily work in the field of rail transport. In particular, the company will modernize the infrastructure of border crossing points, purchase shunting locomotives, equipment for weighing and monitoring cargo transportation with a focus on grain crops.

The company will also facilitate and support the attraction of additional funding, in particular from international financial institutions, for the implementation of infrastructure projects.

As reported, earlier in September, UZ agreed to work together to develop intermodal rail traffic between Ukraine and Austria with the Austrian railway company Rail Cargo Austria.

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Ukrzaliznytsia has increased track repairs by 22%

In January-August 2023, Ukrzaliznytsia (UZ) renewed 854.3 km of tracks with various types of repairs, which is 22% more than in the same period in 2022, the company’s press service said on Monday.

According to the release, in January-August 2023, 217.4 km of track was overhauled with new materials, which is 55% more than in the same period last year, while 119.4 km of track was restored using suitable materials that were already available.

“The average repair was carried out on 517.5 km of track, which is 17% more than in the same period in 2022,” UZ said.

In addition, Ukrzaliznytsia overhauled 104 sets of turnouts with new materials and overhauled 67 sets with existing materials. A total of 440 sets of switches were overhauled.

As reported, the Cabinet of Ministers allowed Ukrzaliznytsia to use EUR 100 million for urgent needs from the balance of the EUR 150 million loan from the European Investment Bank approved in 2016, which was originally planned to be used for the construction of a second track, electrification and modernization of signaling and communication systems on the Dolynska-Mykolaiv-Kolosivka route.

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Ukrzaliznytsia raised over UAH 1 mln for drones with help of passengers

Passengers have bought 183,500 bags of Gemini tea worth over UAH 3.6 million on Ukrzaliznytsia (UZ) trains, of which UAH 1 million will be used to purchase Ukrainian FPV drones Hrom, Minister of Digital Transformation Mykhailo Fedorov said on his Telegram account.

“Everyone who travels by train can help the Defense Forces. To do this, you need to buy Gemini tea. Part of the funds from each bag will be used to buy drones for the military,” the minister emphasized.

UZ noted that such tea can be ordered in the app, chatbot, or on the website, as well as directly on the train (except for Intercity+). The cost of the drink is UAH 20, of which UAH 5.5 from each bag goes to raise funds that will be transferred through the UNITED24 platform for the purchase of Ukrainian-made FPV copters “Thunder”. The cost of one such drone is UAH 21 thousand.

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