Business news from Ukraine

Ukrzaliznytsia reduced volume of cargo transportation by 10% in January-August

16 September , 2023  

JSC “Ukrzaliznytsia” (UZ) in January-August transported 10.5% less cargo than in the same period last year – 94.9 million tons, deputy director of the department of commercial work of “UZ” Valery Tkachev said at a meeting of the Export Office on Wednesday.

At the same time in August the volume of transportation amounted to 12.3 million tons, which is 13.8% more than in August last year.

Tkachev noted that the said reduction in the volume of cargo transportation for the first eight months of this year was mainly due to a decrease in the volume of their transportation in the export direction: in January-August it decreased by 14.8% compared to the same period last year, to 34.8 million tons.

“The situation with transportation in the export direction is not very good. Last month we transported only 3.3 million tons of cargo in export traffic. The reason is the closure of the “grain corridor” and the introduction of restrictions on the western border regarding the acceptance of grain. Therefore, unfortunately, our export transportation has decreased. The best indicator was in September (2022), when we transported 5.2 million tons in export traffic. But now, due to the decline in grain transportation, we have the current indicators,” Tkachev said during the meeting.

According to him, as a result of the decline in grain cargo exports, there have been changes in the structure of transportation – iron ore has taken the first place.

“The first place in transportation in export traffic is occupied by iron and manganese ore – 42% of the total volume. Grain takes the second position – 27%, in the third place ferrous metals – 11%”, – said the deputy director of the department of commercial work of “UZ”.

Thus, in January-August the volume of ore transportation amounted to 11.49 million tons, which is 38.3% less compared to the same period last year. The volume of ferrous metals transportation in export traffic decreased by 29.7%, to 3.03 million tons, oil increased by 21%, to 826 thousand tons, building materials fell by 47.5%, to 1.036 million tons, cement increased by 37.4%, to 791 thousand tons.

The volume of grain cargo exports in August amounted to 876 thousand tons, which is 8.8% more than in July. Of this volume, 358 thousand tons of corn, 225 thousand tons of wheat, 235 thousand tons of industrial seeds and 58 thousand tons of other seeds were transported. In the direction of sea ports 143 thousand tons were transported, through land border crossings 733 thousand tons, which is 8.8% more than in July.

For eight months, the volume of grain transportation amounted to 14.75 million tons, which is 27.6% more compared to the same period last year. “Since June 29, the work of the Grain Corridor has been completely blocked. Massive strikes carried out by the aggressor in July-August on the Odessa region resulted in damage to the infrastructure of international and Ukrainian traders in Odessa and Danube ports. “In addition, since May 2, the European Commission has banned the supply of wheat, corn, rapeseed and sunflower seeds from Ukraine to five countries – Bulgaria, Hungary, Poland, Romania and Slovakia – until September 15, 2023,” UZ points out.

“It is pleasing that the volume of grain transportation in the direction of western land crossings began to grow. Already up to 500 railcars per day we transfer to the western BCPs. Let me remind you that in the best times we used to transfer 680 wagons per day and transported 1 million tons of grain across the western borders per month. After the restrictions, the volumes fell to 370-400 cars and 0.5 million tons of grain. Now the situation is normalizing,” – said Tkachev.

It is noted that the cargo flow through land crossings at the end of August amounted to 2.83 million tons, or 86% of the total export traffic by rail. Mostly cargoes went through Chop – 684 thousand tons, Uzhgorod – 396 thousand tons, Batievo – 241 thousand tons, Vadul-Siret – 206 thousand tons, Yagodin – 163 thousand tons. Seaports handled 476 thousand tons of cargo in August, or 14% of the total volume transported by UZ.

In “UZ” also specified that following the results of August seaports handled 476 thousand tons of cargoes, or 14% of the total volume of transportation by rail in the export direction. Of this volume, only Izmail ICC processed 433 thousand tons of cargo.