Business news from Ukraine

“Ukrzaliznytsia” has reduced transportation of grain cargo by 33%

9 June , 2023  

JSC “Ukrzaliznytsia” (UZ) in May 2023 transported 1836 thousand tons of grain cargo, which is 33% less than a month earlier, said deputy director of the department of commercial work UZ Valery Tkachev at a meeting with representatives of agrarian business on Thursday.
According to his information 1147 thousand tons of grain cargo were sent for export last month, which is 46% less than in April. In domestic communication 683 thousand tons were transported, which is 16% less than in April. Average daily loading in May was 44 thousand tons.
“Two factors influenced the reduction of transportation – the blocking by the aggressor of the “grain corridor”, which affected the delivery of goods by rail to ports, as well as the blocking of exports through “solidarity corridors” by European countries, which led to a halving of cargo handling through the western borders of Ukraine”, – explained Tkachev.
He added that UZ is ready to increase transportation, for which it has sufficient resources.
According to the operational data of UZ, in the first week of June 2023 the volume of grain cargo loading was 380 thousand tons, or 15% of the total cargo. Average daily volumes of transshipment during this period amounted to 54 thousand tons, which is 2.2 times higher than in April.
According to Tkachev, the actual average daily volume of agricultural cargo transshipment through the border crossings in June 2023 increased by 90 cars compared to May. Grain cargo increased by eight cars per day.
A UZ representative said that 9,740 railcars, of which 1,084 railcars with grain cargoes, are heading toward the western border. The queue for agricultural commodities has decreased by 343 cars (24%).
“Wagon congestion is ‘dissipating,’ thanks to the balancing of border loads. As long as the grain corridor works, the load on the western borders is reduced. Also transfer through European countries became more active”, – UZ representative explained.
Speaking about the transshipment of grain at the Ukrainian-Polish border, Tkachev said that in May at the checkpoint “Yagodin-Dorohusk” average daily passed 17.3 cars with grain, crossing “Izov-Grubeshov” – 20 per day, crossing “Mostiska-Medica” – 22.13 per day. At the Romanian BCP “Vadul-Siret-Dornesti” average was 47.7 w/c with grain, BCP “Dyakovo-Halmeu” – 8.5 w/c.
At the Ukrainian-Hungarian border, grain cargo transshipment in May at BCP “Chop-Zakhon” was 39.5 per/c, at BCP “Bat’ovo-Betereshki” in May transshipment of 25.6 per/c was recorded, the maximum rate in May – 93.9 per/c.
“For all Western BCPs, if we analyze the statistics of the last five months, there is a sagging of shipments from one and a half to five times. The remaining restrictions on exports with the permission of transit significantly affect the export of grain through the western borders,” – summarized Tkachev.
The head of UZ reported that, as of June 8, 2023 in the direction of the ports of Greater Odessa moves 2663 railcars with grain cargo. The average daily unloading in June is 493 cars with grain. Unloading waiting time (queue) is 4.9 days.
As of June 8, 1,656 railcars with grain cargo are bound for Port Ismail. Since May 29, the queue decreased by 23.48%. The average daily unloading for June was 122 grain cars. Unloading waiting time (queue) reaches 11.3 days.
“The work of the “grain corridor” today is difficult to predict, the aggressor country constantly changes the number of inspections of ships and puts forward different requirements, in addition the work of the port “Southern” is blocked. The situation in the port of Izmail remains difficult because of the large accumulation of cars. Loading in the port direction is planned taking into account the processing capacity of consignees/operators, but due to weather conditions they unload significantly less than planned volume,” UZ noted.

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