Business news from Ukraine

“Ukrzaliznytsia” increased volume of export transportation to ports by 2.4 times

In January-March 2024, Ukrzaliznytsia JSC (UZ) increased export transportation to ports by 2.4 times compared to the same period in 2023 – up to 15.347 million tons, while reducing the volume of transportation through land crossings in export traffic by 11.9% to 8.041 million tons, according to an analytical note of the company following the meeting of the Exporters’ Office.

In total, Ukrzaliznytsia transported 44.69 million tons of cargo in the first quarter of this year, which is 28.7% more than in the first quarter of 2023. Export transportation accounted for 52.3%, or 23.9 million tons, up 50.6% year-on-year.

In January-March, the company’s export transportation volume of iron and manganese ore increased 2.4 times year-on-year to 9.89 million tons, grain cargo – by 18.4% to 9.9 million tons, and ferrous metals – by 13% to 1.19 million tons.

In addition, the volume of vegetable oil transportation in export traffic in January-March increased by 7.5% to 424.2 thousand tons, construction materials – by 1.8 times to 545 thousand tons, cement – by 49.2% to 277.8 thousand tons.

Earlier, Oleksandr Kubrakov, Vice Prime Minister for the Reconstruction of Ukraine, Minister of Community Development, Territories and Infrastructure (Ministry of Reconstruction), said that in March 2024, Ukrzaliznytsia transported 16 million tons of cargo in all directions, which is a third more than in March 2023 and 10% more than the record figures for February 2024, when the volume of traffic reached 14.5 million tons.

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“Ukrzaliznytsia” reduced freight transportation by 1.5%

In 2023, Ukrzaliznytsia (UZ) transported 148.4 million tons of cargo by all types of traffic, down 1.5% from 2022 and due to the availability of pre-war January-February 2022 in the comparison database, the company’s website reports.

According to it, from March to December 2023, UZ transported an average of 23% more cargo per month than in the same period in 2022.

It is specified that November was a record month last year, when the company transported 14.1 million tons of cargo.

According to the release, 22.3 million tons of cargo were transported to seaports for further export last year, while 34.4 million tons were exported via land crossings.

Domestic transportation in 2023 increased by 11.4% to 84.8 million tons compared to 2022.

According to UZ, the leaders in terms of cargo volumes in 2023 were grains – 30.6 million tons (+5.9%), construction materials – 29.6 million tons (+29.6%), iron and manganese ore – 27.5 million tons (-13.2%), coal – 26.2 million tons (-11.2%) and ferrous metals – 8.2 million tons (-10.6%).

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“Ukrzaliznytsia” increased grain cargo transportation for export by 6%

In 2023, Ukrzaliznytsia JSC transported 30.58 million tons of grain cargo, up 5.9%, or 1.708 million tons, from a year earlier, said Valery Tkachev, deputy director of the commercial work department of UZ, at a meeting with agricultural market participants on Thursday.

According to him, 22.729 mln tons of grain crops were transported for export by rail, which is 178 thsd tonnes more than in 2022. Of these, 14.324 mln tonnes (-4.9%) were shipped to the ports, and 8 mln 405 thsd tonnes (+12.2%) – to the western border crossings.

“Before the embargo on imports of Ukrainian grain by neighboring countries was imposed in April, 900 thsd tonnes to 1 mln tonnes of grain were transported by rail per month. After the ban was imposed, the volume was almost halved. The work of ports in 2023 was significantly affected by the uncertainty of the “grain corridor”, Tkachev stated.

As reported, Ukrzaliznytsia transported 63 million tons of cargo for export in 2023.

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“Ukrzaliznytsia” has increased container transportation by 34%

In 2023, Ukrzaliznytsia (UZ) transported 201.26 thousand twenty-foot equivalent containers (TEUs), up 34% from 2022 and in line with the figures for 2019 before the war, Valery Tkachev, deputy director of the company’s commercial department, said on Wednesday at a meeting on the development of intermodal transportation.

According to him, before Russia’s full-scale invasion, UZ’s container transportation had been growing by 11-22% for four years, including 14% in 2021, but after Russia’s full-scale invasion in 2022, it fell by 46% to 150 thousand TEUs.

“If in 2021 we already reached 279,792 thousand TEU, in 2022 we fell to 150 thousand TEU, that is, 46%,” Tkachev emphasized.

He noted that the rapid recovery of container transportation in 2023 was due to the blocking of Ukrainian seaports.

“If you look at the traffic, 62% of all container transportation is export, 19% is domestic transportation, and 19% is import,” he described the market.

The UZ representative added that grain is the most popular containerized cargo, accounting for 49%. Ferrous metals are in second place (17%), followed by oil cake (14%) and oil (10%).

Tkachev emphasized that the 2023 figures, although positive, are significantly lower than those set out in the development strategy of Ukrzaliznytsia, which provided for the transportation of more than 1 million TEUs per year.

He reminded that in March 2023, UZ launched the intermodal train service, and almost 200 trains were sent.

At the same time, the deputy director of the commercial work department noted that after testing the counter-rail transportation to Poland in December 2023, problems with tariffication arose.

“We are still receiving invoices from the Polish side. There was an agreement on a comprehensive rate, but for some reason the Polish colleagues continue to adjust it, so we are now working with the Polish side to get a single comprehensive rate for this service, and then we will be able to work more rhythmically and transport container trains,” added Tkachev.

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EU proposes to update rules on transportation of cats and dogs

The European Commission is proposing to implement the biggest reform of EU animal welfare rules in 20 years, according to the European Commission’s website on Thursday, December 7.
“The Commission is proposing for the first time new EU rules on the welfare and traceability of dogs and cats bred, kept and sold as pets for economic purposes,” the statement said.
The package includes a revision of the EU’s current rules on animals in transit, which will improve the welfare of the 1.6 billion animals transported to and from the EU each year.
The new rules will establish for the first time common EU standards for the breeding, keeping and treatment of dogs and cats in kennels, pet shops and shelters. The traceability of pets will also be strengthened through mandatory identification and registration in national databases.
Finally, the Commission proposes further steps to implement the European Citizens’ Initiative (ECI) “Europe without Fur”, which calls for an EU ban on fur farming and the sale of products containing such fur.

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UZ increased volume of grain and milled products transportation by 5.8%

In January-October 2023, Ukrzaliznytsia JSC (UZ) increased the volume of grain and milling products transportation by 5.8%, or 1.32 mln tonnes compared to the same period of 2022, to 24.26 mln tonnes, according to the UZ report.

According to the document, 17.55 mln tons of grain and milled products were transported in export traffic in 10 months, which is 0.7% or 129 thsd tonnes less compared to the same period of 2022.

In total, 10.46 mln tons of grain cargo were transported by rail to ports in 10 months, which is 15% less than in the same period of 2022. At the same time, the volume of transportation in the direction of border crossings amounted to 7.09 mln tonnes (31% more).

The volumes of grain cargo transportation to ports have been growing since August, due to the launch of the temporary sea corridor to the ports of Greater Odesa, UZ said.

It is specified that in October, the share of grain transportation towards ports amounted to 56.8%.

Earlier it was reported that 151 vessels have used the Ukrainian sea corridor established by the Ukrainian Navy since August 10, 2023, 121 of which have already used it with 4.4 mln tons of export cargo.

According to the forecast of Yuriy Vaskov, Deputy Minister of Communities, Territories and Infrastructure Development, if the sea corridor is fully operational, more than 50% of export shipments in 2024 will be carried out by sea.

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