Business news from Ukraine

TURNOVER OF IMPORTED CARGO SHIPMENTS BY RAIL TO UKRAINE IN 2015 TO BE LARGEST IN ALMOST 20 YEARS

26 August , 2015  

KYIV. Aug 26 (Interfax-Ukraine) – Turnover of imported cargo shipments by rail to Ukraine in 2015 is projected at 19.336 billion tonne-kilometers, which is 2.1% up on 2014 and the largest since 1996.

According to an explanatory note to the financial plan of Ukrainian railways for 2015, which has been posted on the Infrastructure Ministry’s website, the key goods that will be imported to Ukraine are coal, fuel and ore.

Transit shipments in 2015 are projected at 29.34 billion tonne-kilometers, which is 4.2% down on 2014 and the smallest over the last five years.

The formation of the volumes of transit shipments took into account the relaxed customs control scheme for transit cargo in the Customs Union of Russia, Belarus and Kazakhstan, and almost 90% of Ukrainian transit is formed in these countries. The key transit cargo will be ore, fuel and coal.

Fuel shipments fell due to a decline in shipments of crude oil from Russia and due to partial reorientation to Russian ports.

Nitric fertilizer shipments from Russia decreased due to the small demand of foreign consumers, taking into account stagnation on the fertilizers market. Companies are reoriented to sell nitric fertilizers on the domestic market.

Exports shipments are planned at 89.262 billion tonne-kilometers, which is 5.2% down on 2014.

“The decline in exports shipments would be due to the fall in shipments of construction materials and coal, taking into account demand on the domestic market. Ore that is supplied to Ukrainian metal companies in the Anti-Terrorist Operation (ATO) zone would be exported. Transportation of stone would be reduced due to a fall in orders from Russian companies,” the note said.

According to the note, at present, loading of most metal plants located in eastern Ukraine is low due to a shortage of coke and iron ore.

“The main reason of the decline in shipments of coal is active hostilities and damaged infrastructure in the ATO zone where most coal dispatchers are located. In the past months mines that produce coking coal did not work. Moreover, due to damage of railway tracks, coal companies cannot ship coal washhouses and concentrate – to end consumers,” the note said.

Domestic shipments are predicted at 56.07 billion tonne-kilometers, which is 16.9% less on 2014. The core cargo would be coal, fuel, ore and construction materials.

In general, the financial plan for 2015 projects shipment of 335.445 million tonnes of cargo by rail, which is 13.9% down on 2014.