Metinvest Mining and Metallurgical Group increased its exports of steel products to Poland by about 16% year-on-year in 2023 to over 800 thousand tons from about 700 thousand tons in 2022.
According to Yulia Mezentseva, Head of Logistics at Metinvest Polska, in an interview with the leading Polish publication Puls Biznesu, the increase in cargo traffic is facilitated by the unblocking of routes, but transshipment in ports and border crossings remain bottlenecks.
It is also noted that despite the war, Metinvest is expanding its operations in the Polish market.
“2023 was slightly better for us than the previous year. There were no more congestion and queues on the Polish railway network, which contributed to an increase in transportation efficiency. Compared to the previous year, we recorded a 16% increase in tonnage. We transported a total of 1.9 million tons through Polish ports and railways, of which about 1.3 million were steel products, 378 thousand were iron ore and 237 thousand were coking coal,” Mezentseva stated.
Out of the total volume of products delivered from Ukraine to Poland, 939 thousand tons were exported to other countries through Polish ports.
“The coal needed for our steel plants in Ukraine was also transshipped in Polish ports,” the manager said.
Some of the goods brought from Ukraine to Poland were delivered by rail or truck to Germany, the Czech Republic, Italy, Slovakia, and other countries.
Mezentseva clarifies that iron ore used to dominate the structure of supplies from Ukraine, but now it is mainly steel products that are imported. According to the country’s Metallurgical Chamber of Commerce and Industry, Ukraine is the largest non-EU steel supplier to Poland.
The head of logistics at Metinvest Polska predicts that in 2024, Metinvest will at least maintain and perhaps even slightly increase the volume of supplies of some goods to the Polish market. It assumes that their structure will change, especially the volume of steel imported from Ukraine.
For their part, local producers fear that if demand in Poland starts to grow, Ukrainian steel will flood our market. Przemyslaw Sztuchkowski, president of Cognor, even suggests introducing limits on the supply of steel products from Ukraine to the EU. The idea is to allow free transit through Poland to other countries and to ensure that the volume of imports on the Polish market does not threaten the stable operation of Polish producers.
At the same time, Mezentseva states. “In 2021, 1.2 million tons of our steel products were sold directly to the Polish market, 0.7 million tons in the previous year, and 0.8 million tons in 2023. Due to the war, we have limited opportunities to grow production and supplies,” she notes.
In addition, she draws attention to the problems with the transportation of goods across the Polish-Ukrainian border and transshipment in ports, which impede supplies to our market and transit by sea.
“The Polish-Ukrainian agreement stipulates that six trains a day with steel and ore should pass through the wide gauge at the Medyka border crossing. In practice, three or four are allowed through, as the Polish border and railroad administrations give priority to other transport. Therefore, we often have to wait for a long time at the border, which increases our costs. For every hour of downtime, we have to pay CHF 1.9 per commercial wagon,” says Mezentseva.
She suggests that one of the reasons for the long queues at the border could be the recent protests by Polish carriers and farmers.
“The queue on the Ukrainian side sometimes reached 70 kilometers. In the case of delicate goods that needed to be delivered quickly to customers, we sometimes decided to change modes of transportation and transfer goods from cars to trains to avoid standing in a very long line,” says the manager.
She hopes that the suspension of the protests will facilitate uninterrupted transportation by road and rail. She emphasizes that after crossing the border, transportation through Poland is quite efficient.
“In 2022, we often had to wait on the access roads, but now PKP PLK has significantly improved the capacity of the roads leading to the ports,” says Mezentseva, adding that access to the terminals is almost hassle-free, but there are difficulties with transshipment.
“Bulk cargo, such as iron ore and coal, is transshipped much faster than steel products. Transshipment in Polish ports is four times slower than at Black Sea terminals,” Mezentseva said.
According to her, one of the reasons for this may be the lack of staff at the terminals.
The Metinvest representative also points out that Polish customs regulations do not take into account changes in the weight of bulk cargo during transit. However, they can occur, for example, due to weather conditions. Therefore, employees of transportation and transshipment companies have to spend a lot of time during inspections explaining that coal or ore may weigh a little more in rainy weather. There may also be so-called natural losses during transportation.
“Railroad rules allow a certain percentage of deterioration for different groups of goods. Customs rules, on the other hand, do not allow any losses that are subject to individual inspection by the service. For us, this means significant losses,” emphasizes Mezentseva.
Metinvest Group notes that it is interested in building long-term business relations in the Polish market.
“We are talking about challenges, but we are ready to work out solutions together with the Polish side. We want to simplify procedures and transportation,” adds the Head of Logistics at Metinvest Polska.
“Metinvest is a vertically integrated group of steel and mining companies. The group’s enterprises are located mainly in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it. Metinvest Holding LLC is the management company of Metinvest Group.
The Polish government has received a letter from the European Commission demanding to lift the indefinite embargo on duty-free imports of certain agricultural goods to Poland, Agriculture Minister Czeslaw Sekerski said at a press conference after meeting with representatives of the All-Polish Association of Farmers’ Unions and Agricultural Organizations on Thursday.
“There is a growing danger of a return to the grain crisis of a year ago. The European Commission is demanding that Poland lift the embargo on agricultural products from Ukraine, and farmers are concerned that Ukrainian grain will be only a transit in the new year,” cenyrolnicze.pl quoted him as saying.
The Polish publication noted that after the new year, farmers’ fears about the inflow of agri-food products from Ukraine will not disappear. Gustaw Endrejek, President of the Lublin Chamber of Agriculture, received signals that Poland resumed imports of four types of grain from Ukraine on January 1.
“We don’t know what will happen at the border, as there is contradictory information about the transportation of grain to Poland as duty-free imports,” the newspaper quoted Gustaw Endrejek as saying.
At a press conference, Minister Sekerski assured the public that the resolution on the unilateral closure of the Polish-Ukrainian border is in effect despite Brussels’ demand to resume imports.
“This embargo is indefinite. We believe we already have evidence of this, because we have received a letter from the European Commission demanding the embargo be lifted,” Sekerski explained.
As reported, on Thursday, the Ministry of Agriculture and Rural Development of Poland on Twitter quoted Minister Sekerski as saying that he supported the strikers’ demands, which, however, should be adapted to the current legislation in Poland, including EU legislation. He noted that legal authorization of all the demands would take time. In any case, the Polish-Ukrainian border will not be opened and the embargo on imports of Ukrainian agricultural products will be indefinite.
On January 4, farmers from the organization “Podkarpackie Deceived Village” resumed protests and blockades of the Medyka-Shehynia border crossing, which were suspended on December 24, 2023. The leader of the organization, Roman Kondruv, told Polish media that the organization had not received written confirmation that its demands would be met, so the protest would continue.
The farmers started their protest on November 23 last year, and stopped it a month later. On the eve of Christmas, Polish Minister of Agriculture Czeslaw Sekerski came to Medyka and assured that the farmers’ demands would be met.
Polish farmers insist on receiving written assurances from the Polish government that their demands will be met. These include the abolition of the agricultural tax increase, easier access to soft loans to support the liquidity of their farms, a 1,000 zloty per hectare corn subsidy, and regulation of the conditions for importing food from Ukraine.
On Wednesday, Polish Prime Minister Donald Tusk emphasized the importance of ending the blockade, especially in the face of escalating bombing and increasingly intense Russian actions. He believes that the arguments will be better heard when Poland is not the country blocking the borders.
Ukrzaliznytsia (UZ) has announced the arrival of a batch of trucks to Poland by rail from Ukraine.
“The Ukrainian and Polish parties have agreed on all issues of transportation and customs and border procedures. The trucks will continue to their destination by road,” UZ said on its Telegram channel on Sunday.
The company emphasized that the next shipments are planned to be regular and involve more modernized platforms in transportation.
UZ reminded that it had organized a container train between Ukraine and Poland to transport trucks. It runs on the route Sknyliv (Ukraine) – Slavków (Poland). To order the transportation of a truck by a container train from Ukraine, you need to contact the Liski Transport Service Center branch of Ukrzaliznytsia JSC, and in the opposite direction – UZ Cargo Poland.
As reported, UZ sent the first container train with trucks to Poland on December 7. In this way, Ukrainian exporters tried to solve the problem of crossing the Ukrainian-Polish border, which had been blocked by Polish carriers for a month.
As of Tuesday morning, November 17, approximately 2,400 trucks are waiting to leave Poland at three checkpoints on the Ukrainian-Polish border – Yagodyn-Dorogusk, Krakovets-Korcheva, and Rava-Ruska-Krebenne, said Andriy Demchenko, spokesman for the State Border Guard Service of Ukraine (SBGS).
“Unfortunately, the blocking of traffic for trucks in three directions has been in place since November 6. As of this morning, there are about 2,400 trucks on the territory of Poland heading out of this country to Ukraine. Most of them are in front of the Yagodyn checkpoint – 1,100 trucks, the rest are heading towards the Krakovets and Rava-Ruska checkpoints,” he said on the air of the national telethon.
The speaker noted that the strikers let several vehicles pass in all directions in an hour.
“The only more or less intense traffic we see is at the Krakovets checkpoint, when trucks are traveling from Ukraine to Poland,” Demchenko said.
He added that in general, the number of vehicles waiting to cross the border from Poland to Ukraine has been at the level of 2400-2500 in recent days.
“At the same time, carriers are choosing other routes. For several days now, we have been observing a congestion of trucks opposite the Shehyni checkpoint. There are about 1,100 trucks there,” the State Border Guard Service said.
As reported, on November 6, Polish carriers began a blockade of freight traffic at three checkpoints: Korchova-Krakovets, Hrebenne-Rava-Ruska and Dorohusk-Yagodyn.
Ukraine’s Ambassador to Poland Vasyl Zvarych said that the blockade of freight traffic towards the three checkpoints on the Ukrainian-Polish border is a “painful stab in the back of Ukraine” and jeopardizes the “solidarity corridors” that carry Ukrainian grain to third countries.
In July-September this year, the cargo turnover of the port of Kolobrzeg increased by 52% due to the resumption of transshipment of Ukrainian agricultural products, the Polish edition of Rynek Infrastruktury reports.
According to the report, Kolobrzeg was not previously included in the Polish government’s resolution on the transit of Ukrainian grain. In the third quarter, the port resumed accepting Ukrainian agricultural products, which helped increase cargo turnover.
In the third quarter, the Polish port handled more than 73 thousand tons of cargo, which is 52% more than in the same period of 2022, when 48 thousand tons were handled. The cargo included grain, logs, limestone, pellets and fertilizers. Grain accounts for half of the transshipment. Among the grains transshipped in Kolobrzeg, corn and barley were the most common.
The port temporarily suspended operations in April this year. Back then, the Polish authorities banned imports of Ukrainian grain but allowed its transit. At first, Kolobrzeg was not on the list of ports that could handle Ukrainian grain, but later the Polish government allowed the company to handle Ukrainian cargo.
“We have demonstrated that we are unpredictable in our actions as a country, so building long-term business relations is perceived as risky, as one decree can turn everything upside down”, said Artur Lievski, head of the port’s administration.
A week after the ban was imposed by the Polish government, the mistake was corrected: Kolobrzeg was included in the list of seaports through which grain can be transited from Ukraine. However, it took a long time to restore trust, and for some time no freight trains with Ukrainian products arrived in Kolobrzeg. After a three-month break, the first train with corn from Ukraine arrived at the seaport of Kolobrzeg in late July, the newspaper said.
On Sunday, October 15, Poland holds elections to the Sejm, Senate, as well as a national referendum, voting began at 7.00 and will last until 21.00, reports Polskie Radio.
It is noted that citizens have been created conditions for voting in Poland, abroad and even on ships. According to the chairman of the National Election Commission Sylwester Marciniak, more than 31 thousand electoral districts have been created.
“There are 29 thousand 292 stationary constituencies, 1,701 separate constituencies, and in addition, 417 constituencies abroad have been created, however, one was eliminated in Israel, and 8 constituencies for voting on ships have been created,” Marciniak emphasized
According to Polskie Radio, 29 million Polish citizens have the right to vote in elections and referendums. More than 391 thousand voting certificates have been issued, which allow voting not at the place of residence.
It is noted that Poles will elect 460 deputies and 100 senators. And the referendum should answer four questions: whether they support the removal of the fence on the border with Belarus, support for the privatization of state-owned enterprises, raising the retirement age to 60 years for women and 65 years for men, as well as whether they agree to accept thousands of illegal migrants from the Middle East and Africa, in accordance with the mechanism of forced relocation, which operates in the EU.
As DW reports, according to the latest opinion polls, the ruling national-conservative Law and Justice (PiS) party of Deputy Prime Minister Jaroslaw Kaczynski with 34% of the vote is only slightly ahead of the opposition liberal-conservative Civic Platform (CP) party of former Polish Prime Minister and former President of the European Council Donald Tusk, for which 32% of voters are ready to vote.
It is emphasized that in case of victory each of the contenders will have to look for partners to create a government coalition.
