The Ukrainian Danube Shipping Company (UDP) supports the call of agricultural producers and exporters to introduce a 30% discount on rail transportation to Izmail and Reni stations, the press service of the state-owned enterprise said in a telegram.
“Ukrainian agricultural producers propose to the Cabinet of Ministers to put the ports of Odesa and the Danube region on an equal footing… The UDP fully supports the proposal of the agrarians. The enemy does not stop attacking the infrastructure of Odesa. Ukraine must maintain alternative export routes,” the statement reads.
The UDP emphasized that the Danube route is a plus of 250 km of roads or 200 km of railroad. Because of this, the Danube ports are losing competition even with the same freight and transshipment tariffs that apply in Odesa ports.
The shipping company reminds that a precedent has already been set: the Cabinet of Ministers recently introduced a 30% discount on rail transportation of agricultural products from areas where hostilities are possible, the UDP said, adding that the need for exports to move across the Danube has been repeatedly discussed at industry events, forums, and conferences. However, in the context of critically low grain prices, producers and traders are not ready to lose earnings (margin) to reduce risks.
“The discount on rail transportation will absolutely pay off if the condition for receiving it is the transshipment of grain to the state river or sea fleet. The state budget will compensate for the revenue lost by the railroad at the expense of freight income,” the state-owned enterprise says.
The UDP reminded that it is currently transporting Serbian grain and emphasized that it has enough fleet to work with Ukrainian products at the same time.
“Other Danube countries are lobbying very hard for the interests of their own carriers, because the entire Danube is suffering from an abnormal drop in rates and cargo flows. Ukraine has its own national carrier, which should also be supported and preserved,” the UDP emphasized.
