In Ukraine, the price of transporting grain by rail to ports has become cheaper

In April, transportation of agricultural products by rail became cheaper in Ukraine. This also applies to transportation for export to sea ports.

The cost of grain cargo transportation in grain trucks of JSC “Ukrzaliznytsia” decreased by 7.67-31.62% in April, depending on the connection. Valeriy Tkachev, the deputy director of the department of commercial work of UZ, reported this on Facebook.

Taking into account the increase in the speed of movement of UZ grain trucks in April and the decrease in the market value of using grain trucks at the Prozorro.Prodazhi ETS auctions, the total cost of transporting grain in UZ wagons (for an average distance of 655-710 km) is:

• in the export package in the direction of sea ports — $22.1-$23.6/ton without VAT (decrease in cost — by 10.4%);

• in domestic and imported combined — $22.9-$23.6/ton without VAT (cost reduction by 31.62%);

• in the export package in the direction of western crossings — $38.5/ton without VAT (cost reduction by 7.67%).

The total cost includes the transportation tariff, the cost of using UZ wagons (1,822.5 UAH/day), additional fees and payments at the departure station (3,500 UAH/wagon), as well as the cost of using a UZ grain truck for 2 days when loaded.

The UZ urged farmers to participate in electronic auctions for the sale of the company’s grain trucks.

Earlier, the Ukrainian Grain Association (UGA) appealed to the Government to establish special tariffs for rail deliveries of grain to Danube ports. According to farmers, this will help increase the competitiveness of the Danube ports.

Currently, the Danube ports cannot efficiently process cargo, in particular, due to the lack of mechanized warehouses. The fact is that the ports have been in decline for 30 years due to the additional kilometers of the road. The establishment of a special railway tariff should increase the cargo flow and turnover. This will subsequently attract a flow of investments to the Danube region, the UGA said in a statement.

Agrarians hope that the Government will consider the possibility of temporarily using funds from the State Fund for Inland Waterways in accordance with clause 6.part.3. Article 24 of the Budget Code of Ukraine for compensation of the special tariff for railway transportation.