Business news from Ukraine

Ukrainian Danube Shipping Company launches “Danube Grain Route” project

2 November , 2022  

The Ukrainian Danube Shipping Company (UDP) is launching the Danube Grain Route project due to the disruption of the “grain initiative” by Russia, UDP CEO Dmitry Moskalenko said on his Facebook page.

“Back in the summer, we assumed that Russia could at any moment try to disrupt the Grain Initiative. Therefore, we persistently and systematically developed our Danube Grain Route project,” Moskalenko explained.

According to him, UDP has invested in the creation of its own transshipment of grain and agreed with the Romanian partners – the TTS group of companies – on a faster and more efficient transshipment scheme in the port of Constanta.

Among the advantages of the new grain project at the first stage, Moskalenko noted that due to the faster loading and unloading process, the average caravan turnaround time will be reduced by about 30%. As a result, cargo owners will not have to bear financial losses due to long queues near the terminal.

In addition, the Director General of the UDP predicts that in the future the barge caravan will be able to carry out up to two trips per month due to the equipping of ships with online control systems, video surveillance and an increase in the number of navigators in the crew.

Moskalenko also said that at the second stage of the project, it is planned to build new barges, to increase the “tonnage” capabilities and modernize traction – a major overhaul of the self-propelled fleet with the replacement of engines.

As reported with reference to the data of the Ministry of Infrastructure of Ukraine, in just three months of the implementation of the Grain Initiative, 422 ships from Ukrainian seaports exported about 10 million tons of agricultural products. This volume could be 30-40% more if Russia did not block inspections in the Bosphorus.

On the afternoon of October 31, the press secretary of the Russian president, Dmitry Peskov, said that without the participation of the Russian Federation, the export of Ukrainian grain would hardly be feasible. At the same time, he noted that from now on the grain deal acquires a “risky and non-guaranteed character.”

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