Business news from Ukraine

UKRCEMENT ASSOCIATION ASKS UKRZALIZNYTSIA TO TAKE INTO ACCOUNT SPECIFICS OF INDUSTRY WHEN DISTRIBUTING CARS AT AUCTIONS

26 October , 2021  

The Ukrcement Association has asked Ukrzaliznytsia to take into account the specifics of the cement industry when distributing wagons at auctions, as well as to reduce the use of specialized cement wagons for the transportation of other goods in high season, Chairman of the association, Pavlo Kachur said in an exclusive interview with Interfax-Ukraine.
According to him, among the urgent problems with the distribution of wagons, in particular, the lack of cement cars for transporting cement due to their use for the transportation of crushed stone and other bulk materials, and inappropriate offers at auctions in terms of the number of wagons.
Cement producers lose to grain producers, power companies, crushed stone producers in routing. They are profitable clients for Ukrzaliznytsia. They load 40 wagons in one place, bring them to the port, a power plant or an open area, unload and this is the end of the work. And they tell us: bargain, there are wagons. But cement consumers have their own specifics, which we ask to also take into account. We have only a few consumers for 20-30 wagons. Basically three or five wagons are ordered, but such offers at auctions are not enough,” Kachur said.
In addition, until September 2021, Ukrzaliznytsia put up 170 cement carriages for sale per day exclusively for the shipment of cement, but in September-October this restriction was canceled and 80 cars were put up for the transport of bulk cargo.
“On October 21, 2021, Ukrzaliznytsia also canceled this division of cement cars by type of cargo, which caused a speculative jump in the railway tariff due to increased demand from shippers of bulk materials, while leaving cement producers without wagons for transporting cement. After all, cement, in contrast to other bulk materials can only be transported by cement wagons,” the chairman of Ukrcement said.

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