75% of grain is transported by private wagons in Ukraine
On average, rail transportation across the territory of Ukraine is 650-700 km. UZ, as a carrier, charges only $11-12.5 for this service.
This is the railway’s main source of income, writes “Elevatorist” with reference to Valery Tkachev, deputy director of the department of commercial work of Ukrzaliznytsia.
“Also, we make money on wagons. But in this component of logistics, our market share is only 25-27%. That is, every fourth ton of grain goes in the UZ wagon,” said Valery Tkachev.
The specialist claims that the price earned by UZ ($11-12) cannot increase, because it is a constant set by the state.
“Due to high demand, there is a shortage of wagons. But, as I emphasized, UZ occupies only 25% of this market — there are three private wagons for one UZ wagon. The profit from the increase in the value of wagons is primarily received by the private owner of the wagon,” he explains.
Valery Tkachev explained the October maximum of 12,000 UAH per grain truck with the action of the market mechanism and the coincidence of factors — the increase in the estimated speed of wagons and the increase in demand for grain trucks during the late grain harvest campaign.