Business news from Ukraine

Ukraine will send 57 thousand tons of grain to Nigeria, Sudan and Somalia

Ukraine plans to send 57,000 tons of grain as humanitarian aid to Nigeria, Sudan and Somalia, Deputy Minister of Agrarian Policy and Food Markiyan Dmytrasevych said during a meeting with Deputy Executive Director of the World Food Program (WFP) Carl Skau.

According to the press service of the Ministry of Agrarian Policy, the parties discussed sending ships with Ukrainian humanitarian grain to Nigeria (25 thousand tons) and Sudan (32 thousand tons) under the Grain from Ukraine program. They also discussed the possibility of sending humanitarian cargo to Somalia.

In addition, the parties discussed preparations for the next international food security summit in Kyiv.

“In particular, it is possible to expand the geography and range of supplies on the initiative of Grain from Ukraine,” the Ministry’s website said.

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Latvian port receives test train with Ukrainian grain

Latvian port “Rīgas Universālais Termināls” (RUT) has received and unloaded the first test train with 1423 tons of Ukrainian rape, which were loaded into 54 containers, reported the Latvian edition ldz.lv.

According to the report, containers with Ukrainian grain were delivered by the subsidiary of SIA “LDZ CARGO” VAS “Latvijas dzelzceļš”. Containers from Ukraine arrived at the port of Riga through Kaunas intermodal railroad terminal, where they were loaded on the platforms of SIA “LDZ CARGO” to continue their journey to Riga. The Ukrainian rapeseed is currently being unloaded and stored at RUT warehouses.

“I am very pleased with the successful cooperation of Latvian Railways, Riga Port and Riga Universal Terminal, which provided the first delivery of Ukrainian grain cargoes by rail and transshipment in the port. Also in the future, Latvia will become an important ally of Ukraine, bringing Ukraine closer and integrating it into the European transportation network,” Latvian Transport Minister Kaspars Briškens said.

According to the information provided by the manager of the Freeport of Riga, Ansis Zeltins, since the beginning of the war the terminals of the Freeport of Riga have been actively working on the transportation of Ukrainian grain products. It was delivered to the port by road transport, which “is not comparable to railroad transport in terms of efficiency and volume of cargo transportation”.

Several terminals in the port of Riga by technological and infrastructural capabilities will be fully ready to receive and efficiently handle container trains with Ukrainian grain products. We hope that this first test of the entire logistics chain will be successful, and from now on we will regularly receive trains with Ukrainian grain in the Port of Riga,” he emphasized.

Receiving grain in containers is a new experience for the terminals of the Port of Riga, the publication noted.

Edgars Rudzitis, head of the wholesale warehouses department of RUT, said that the terminal is equipped and ready to receive grain container trains from Ukraine. It has the necessary technology to handle containers, warehouses and suitable infrastructure for bulk storage and cargo loading.

In spite of the new type of transshipment and difficulties, all works have been performed in the shortest possible time – the terminal’s possibilities have also allowed the carrier to fulfill its main requirement – to free the railway platforms quickly, so that they could be used for new shipments, he said.

Rinalds Plavnieks, Chairman of the Board of VAS “Latvijas dzelzceļš”, in turn, said that the Ukrainian grain delivered in containers is the first cargo from Ukraine, which will be transported through the company’s infrastructure.

“We have repeatedly confirmed that the capacities of Latvian railway infrastructure and SIA “LDZ CARGO” allow us to transport and handle large volumes of cargo, including grain from Ukraine. In accordance with the current situation, we have created new freight transportation options and plan to develop them in the future, so that the transportation of grain and other products between Ukraine and Latvia can be carried out regularly,” assured the cargo carrier.

Containers were shipped from Ukraine on September 25, on October 8 they were reloaded on the platforms of SIA “LDZ CARGO” in Kaunas, and on October 11 the platforms arrived to the port of Riga and unloading began at the Riga universal terminal. Railway transportation was organized by SIA “LDZ CARGO” together with the customer SIA “LTG Cargo Ukraine” under a cooperation agreement concluded in November 2022.

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Greece offers to use Aegean ports to transport Ukrainian grain

Greece proposes to use its ports in the Aegean Sea as a corridor for the export of Ukrainian grain, the Greek newspaper Kathimerini reports.

According to the report, the Greek government has already discussed its proposals with partners in the EU to transport Ukrainian grain through the ports of Thessaloniki and Alexandropoulos. The grain could be transported to the ports by rail through Romania and Bulgaria, and then loaded onto Greek commercial vessels.

The problem in this regard is the limited capacity of the railroad network in northern Greece, which is located on the border with Bulgaria and Turkey and escaped destruction during the recent floods.

A “green light” for Ukrainian exports via Greece could also be an impetus for the development and modernization of railways in northern Greece, particularly on the line from Alexandropoulos to Ormenio, a station on the border with Bulgaria.

During his visit to Kyiv, Greek Foreign Minister George Gerapetritis informed his EU colleagues that Greece is ready to contribute to solving the problem and focused on the “huge consequences” of the collapse of the agreement with Russia, especially for the countries of the Global South.

Athens is confident that such a proposal could be beneficial for both Ukraine and Greece, the newspaper writes.

As you know, Lithuania and Croatia have already offered their ports to help Ukraine with agricultural exports.

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Germany to supply Ukraine with air defense systems to protect grain supplies

German authorities intend to send additional air defense systems to Ukraine to protect the country’s grain exports, Bloomberg reported on Wednesday, citing sources.

“They said on condition of anonymity that Berlin will supply an additional IRIS-T air defense system and more than a dozen Gepard systems to provide cover for shipments along Ukraine’s southern coast to Romania,” the agency reports.

These weapons are expected to arrive in Ukraine by the end of the year; Kyiv is to receive more IRIS-Ts as they are produced by Germany.

The sources did not disclose what routes these air defense systems will cover or what other capabilities Berlin may include in the new aid package for Ukraine.

German MP Markus Faber confirmed that Ukraine will receive additional IRIS-T and Gepard systems, as well as ammunition, but did not provide details.

According to Bloomberg, Gepard has a range of 4 km, and IRIS-T – up to 40 km. The air defense systems can be used to protect port infrastructure, the process of loading grain onto ships, and when they are at sea.

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Lithuania simplifies transit of Ukrainian grain to Baltic ports

Lithuania has agreed on a corridor for the transit of Ukrainian grain to Baltic ports, Lithuanian Foreign Minister Gabrielius Landsbergis said.

“Russia destroys food, Lithuania delivers it. A corridor for grain transit to Baltic ports has been approved and agreed upon, which eases pressure on the Ukrainian border and increases supplies to Africa and beyond. Cooperation gives results!” he wrote on Twitter.

Earlier, it was reported that veterinary, sanitary and phytosanitary control would be moved from the Ukrainian-Polish border to the port of Klaipeda (Lithuania) for all agricultural cargoes heading to this port within two days. This will speed up transit through Poland.

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DAI Global LLC will support Ukrzaliznytsia in developing grain exports

Ukrzaliznytsia (UZ) and DAI Global LLC, a development company working with international development agencies, have signed a memorandum on the implementation of the international technical assistance project Economic Support for Ukraine, which provides for the development of Ukrainian grain exports by rail, the UZ press service said on Friday.

“Our common task is to increase grain exports by developing solutions that will help increase and demonstrate the efficiency and profitability of Ukraine’s rail export logistics,” said Yevhen Lyashchenko, Chairman of the Board of UZ.

According to the release, the memorandum refers to support in the repair and restoration of grain hoppers and the purchase of locomotives, as well as reducing grain transportation costs through improved cross-border cooperation, joint actions that reduce costs and increase the efficiency of weighing and scanning cargo, and improving transshipment equipment.

In addition, the memorandum provides for the provision of comprehensive services for the design and construction of priority border crossing points (BCPs) and other areas and projects that will increase the ability to export agricultural products.

Within the framework of the project, DAI Global will primarily work in the field of rail transport. In particular, the company will modernize the infrastructure of border crossing points, purchase shunting locomotives, equipment for weighing and monitoring cargo transportation with a focus on grain crops.

The company will also facilitate and support the attraction of additional funding, in particular from international financial institutions, for the implementation of infrastructure projects.

As reported, earlier in September, UZ agreed to work together to develop intermodal rail traffic between Ukraine and Austria with the Austrian railway company Rail Cargo Austria.

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