Ukrzaliznytsia can make logistics on the Danube more efficient

In order to maintain the competitiveness of the Danube ports with the ports of Great Odesa, it is necessary to reduce the costs of delivering goods in the direction of the Danube.

Logistics through the ports of the Danube are now more expensive than through the ports of Great Odesa. This is due to the high cost of rail and road transportation, Mykhailo Rizak, director of interaction with authorities of the Nibulon company, said, UGA writes.

On its way to the Danube ports, the cargo travels an additional 250 km of highways and 200 km of railway from the deep-sea ports of Great Odesa. Because of this, as of May 2024, Danube ports are $5/t more expensive than deep-sea ports.

According to Rizak, logistics on the Danube can become more efficient thanks to the introduction of a special tariff for transportation from “Ukrzaliznytsia” (conditional UAH 1 from Chornomorsk to the Danube and back in the delivery chain), which will support the competitiveness of the Danube ports compared to the deep-water ports of Great Odesa.

The expert called the second factor the help of donors in providing wagons and trailers for the river ports of the Dnipro and Pivdennyi Buh. This will reduce the cost of logistics when transporting grain from blocked river terminals to the nearest railway station and on to the Danube.

Read also: “Nibulon” exported record volumes of grain since the beginning of the war