Business news from Ukraine

Poland to build grain terminal in Gdansk for Ukraine

The first grain port in Poland will be built in Gdansk, in particular for the export of Ukrainian agricultural products, Minister of Agriculture and Rural Development Robert Telus said at a meeting with voters in Przysus, polskieradio24.pl reports.

According to the report, RSSI (Agri-Food Investment Company – IF-U) has signed an agreement with the Port of Gdansk to implement this project.

“On Tuesday, the state budget enterprise RSSI signed an agreement with the Port of Gdansk to create a grain port. We have a grain port,” the minister said, adding that this is an extremely important event.

He noted that the grain port will improve the transportation of grain, in particular from Ukraine.

The creation of further “solidarity corridors” that would allow the transportation of Ukrainian grain by sea is very important, he explained, while emphasizing that the lack of agricultural supplies to African countries is beneficial to Russian President Vladimir Putin.

As reported, on September 15, the European Commission announced that it would not extend restrictions on imports of agricultural products from Ukraine to five neighboring EU countries (Poland, Bulgaria, Hungary, Romania and Slovakia) under certain conditions that will help avoid a new sharp increase in supplies.

The restrictions were introduced on May 2 and applied to imports of wheat, rapeseed, sunflower and corn. These five Eastern European EU member states argued that Ukrainian agricultural products, when imported duty-free into the EU, were being deposited in their countries and were harming their local agricultural sectors.

After the restrictions were lifted, Poland, Hungary, and Slovakia imposed unilateral bans. Poland expanded the list of banned products to include rapeseed cake and meal, as well as corn bran, wheat flour, and derivatives. Hungary extended the list to 24 commodity items.

Ukraine filed a lawsuit with the WTO, accusing Poland, Hungary, and Slovakia of discriminatory treatment of its agricultural products.

Ukraine is currently negotiating the introduction of a mechanism for licensing the export of Ukrainian agricultural products with mandatory verification in each of the five countries.

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Polish Gdansk increases capacity to speed up transshipment of Ukrainian grain

The port of Gdansk (Poland) in anticipation of an increase in cargo flow with Ukrainian grain harvest-2023 will increase the number of tents and silos to increase transshipment capacity by 0.5 million tons per month, which will allow to transship 5.8 million tons of grain per year, said president of the port Lukasz Malinowski.
“Last year the port terminals transshipped a total of just over 1.9 million tons of grain,” the Polish edition of pap.pl quoted him as saying.
Malinowski stressed that this decision was made in connection with the forecasts of Polish analysts, who expect an even greater swell of grain to be shipped from Polish ports.
“Only from January to the end of May, the volume of grain transshipment in the port was about 1.1 million tons,” stated Malinowski.
According to his information, currently the capacity of the main grain terminals in the port of “Gdansk” is 300 thousand tons per month, and storage capacity – 126 thousand tons. The development of port capacities by almost 70% will allow to increase the transportation of grain in the near future. This will allow during the peak periods to get to the port 1500 trucks with grain.
The Port of Gdansk is gradually increasing the number of parking spaces. In total, there are already 780 parking spaces. By mid-July, their number to 970, said Malinowski.
President of the port also underlined that thanks to rakoraf (devices for taking samples of the grain intended for export – IF), it will be possible to check the quality of the grain in three parking lots within the Port of Gdańsk borders.
As reported, until September 15, 2023 by decision of the European Commission, a ban on imports of Ukrainian grain to five frontline countries: Poland, Bulgaria, Hungary, Romania and Slovakia.

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Ukrainian farmers are asking Poland to build a broad-gauge railway line from Ukraine to Gdansk through Lithuania

Ukrainian agrarians have applied to the authorities of the Republic of Poland with a request to lay a broad-gauge railway line (with a gauge of 1520 mm) across its territory, which will connect the port of Polish Gdansk with the Ukrainian and Lithuanian railway networks to export agricultural products and ensure strategically important imports through western borders of Ukraine.
The corresponding appeal to the President of the Republic of Poland Andrzej Duda and its Prime Minister Mateusz Morawiecki was sent by the leading Ukrainian agrarian associations: the All-Ukrainian Agrarian Council (VAR), the Agrarian Union of Ukraine, the Ukrainian Agrarian Business Club, the All-Ukrainian Association of Communities, the Union of Poultry Breeders of Ukraine and the Ukrainian Agrarian Confederation, reportedly on the VAR website on Friday.
According to the appeal, one of the largest and closest European ports to Ukraine is the port of Klaipeda (Lithuania), which has significant free transshipment capacities. However, due to differences in the gauge between Poland, Ukraine and the Baltic countries, there is a need to reload the contents of wagons at border crossings between countries or rearrange wagon bogies, which does not allow to fully realize the export-import potential of the port of Klaipeda.
In turn, the use of vehicles or containers as an alternative to railway transportation is poorly suited for transporting bulk bulk cargo (coal, ore, grain, metal) over long distances and increases their cost to an uncompetitive level. In addition, in the case of using container terminals, the capacity of the railway line will be limited by their capacity, which will also prevent full use of the potential.
“In our opinion, the laying of a railway line with a gauge of 1520 mm across the territory of the Republic of Poland, which will connect the Ukrainian and Lithuanian railway networks, as well as connect the port of Gdansk to them for the transport of goods and passengers, will solve the above-mentioned problems,” the appeal of the Ukrainian farmers.
At the same time, it is emphasized that such a logistical path will give significant positive financial and economic effects for Poland and Ukraine, not only due to an increase in export-import capacities, but also due to the unification of the economic space of Poland, the Baltic countries and Ukraine.
Such a project can be implemented through the reconstruction of the existing railway network and the construction of a combined track, or the construction of a separate railway branch.
As reported, in June 2022, Polish Deputy Prime Minister Yaroslav Kaczynski said that the issue of building this broad-gauge railway track had already been tentatively approved by the Polish and Ukrainian governments.
In early June, the VAR already proposed to build 300 km of broad-gauge railway tracks in Poland for direct grain deliveries to the Lithuanian port of Klaipeda, which would allow not to overload the contents of wagons at the Ukraine-Poland and Poland-Lithuania border crossings due to the difference in railway gauge in these countries.

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WIZZ AIR AIRLINE TO LAUNCH FLIGHTS FROM ODESA TO BUDAPEST, BERLIN, BRATISLAVA, WROCLAW, GDANSK, AND KATOWICE

Hungary’s low cost Wizz Air airline in autumn 2019 will launch flights to seven new destinations: six from Odesa and one from Lviv, Paulina Gosk, corporate communications manager at Wizz Air, said at a briefing in Odesa. According to her, from Odesa, in particular, twice a week from November flights will be operated to Budapest (Hungary), Berlin (Germany), Bratislava (Slovakia), Wroclaw, Gdansk, and Katowice (all are in Poland).
In addition, on October 28, it is planned to launch the Lviv-Larnaca (Cyprus) flights.
“In 2019, 17 new destinations from Ukraine were opened,” Gosk said.
The airline expects that thanks to the increase in the number of destinations, 2.6 million seats will be sold this year, and in general, 53 destinations will be covered from Ukraine by the end of 2019, Gosk said.
As reported, in January-July 2019, Wizz Air transported 1.3 million passengers from and to Ukraine and this is almost twice as much compared to the same period in 2018.

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WIZZ AIR TO LAUNCH FLIGHTS FROM LVIV TO VILNIUS, BRATISLAVA, FROM KHARKIV TO GDANSK, WROCLAW

Hungary’s low cost airline Wizz Air from October 2018 will service flights from Lviv to Vilnius and Bratislava, and from Kharkiv to Gdansk and Wroclaw. The press service of the airline reported that Ukrainian passenger can book tickets on the airline’s website at the prices starting from UAH 299 for a one-way ticket, taking into account all taxes and duties.
Flights from Lviv to Vilnius will be serviced from October 29 on Mondays and Fridays; from Lviv to Bratislava – from October 30 on Tuesdays, Thursdays and Saturdays.
Flights from Kharkiv to Gdansk and Wroclaw will be serviced on Wednesdays and Sundays from October 28, 2018.
“We will now service regular flights from the Kharkiv international airport on four Polish routes, and we hope that direct flights to cities such as Wroclaw and Gdansk will open even more opportunities for our passengers: both in the tourism industry and in education, culture, entrepreneurship and others,” Commercial Director for Aviation Activities of the Kharkiv international airport (managed by New Systems AM, a member of the DCH group of businessman Oleksandr Yaroslavsky) Vladyslav Ilyin said.

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