Business news from Ukraine

“Ukrzaliznytsia” has reduced freight transportation volumes by 12.4%

11 July , 2023  

JSC “Ukrzaliznytsia” (UZ) in the first half of 2023 transported 70.5 million tons of cargo, which is 14.5 million tons or 12.4% less compared to the same period of 2022, according to the UZ report on the results of freight work for the first half of the year.

According to statistics, 28.2 million tons of cargo, or 40% of all volumes, were transported in export traffic in the first half of 2023, which is less by 5.2 million tons or 15.4% compared to the first half of 2022.

It is noted that the volume of transportation of iron and manganese ore fell by 44.7%, or 7.003 million tons – to 8.672 million tons.

“Russia’s blockade of sea ports led to a significant restriction of exports. Cargo flows were redirected mainly through Ukraine’s western international railroad crossings to EU countries. Thus, 90% of ore exports are directed through western border crossings,” the UZ report states.

Exports of ferrous metals fell in the first half of the year by 37.8%, or 1.410 million tons – to 2.322 million tons, and although in March-May it significantly exceeded last year’s figures, in June this gap narrowed due to the destruction of the Kakhovska HPP and reduced production of enterprises in Nikopol, Zaporizhzhya and Kryvorizhzhya districts.

Also, by the end of the first half of the year, the export by rail of minstroymaterials decreased – by 56.9%, or 924.3 thousand tons – to 701 thousand tons.

At the same time, in January-June this year, the volume of grain transportation increased – by 44.5% or 4.027 million tons – up to 13.072 million tons and vegetable oil – by 22.5% or 135 thousand tons – up to 736 thousand tons.

In addition, in the first half of 2023, the volume of cement transportation increased – by 33.4% or 130.7 thousand tons – up to 522.4 thousand tons.

As reported, in June this year UZ transported 12.4 mln tons of cargo, which is 31.9% more compared to June 2022 and 7.9% more compared to May 2023, including export shipments of 4 mln tons (+24.3% and +5.6%, respectively).

Transportation of grain cargoes in June 2023 increased to 2 million tons (+48.4% vs. June 2022), construction materials – to 3.1 million tons (+87%), hard coal – to 2.3 million tons ( +16.3%), iron and manganese ore – to 2 million tons. (2,8%).

For comparison, in May this year, Ukrzaliznytsia transported grain cargo 1.83 million tons, construction materials – 2.5 million tons, hard coal – up to 2.22 million tons, iron and manganese ore – 1.96 million tons.

As of today, UZ has 19 railway border crossings with EU countries and Moldova, of which 14 main ones are functioning and provide freight transportation in the direction of: Poland (4 crossings), Romania (2 crossings), Slovakia (2 crossings), Hungary (2 crossings) and Moldova (4 crossings).

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