Discount on transit through Moldova could make Reni port competitive – an opinion

Reducing tariffs for cargo transit through Moldova by 50% can restore competitiveness to the railway route and increase cargo flow towards the port of Reni.

This was told by TEUS Director Dmitry Kazanin to USM.

According to him, previously the high cost of rail transit through Moldova significantly limited the use of this route. In many cases, road delivery was more profitable, so some cargo owners and traders did not consider the railway as a competitive option.

After reducing tariffs, the railway can compete more actively with road transport, especially when transporting large batches of grain, oilseeds, meal, fertilizers and other bulk cargo.

Kazanin also noted that the decision can change the balance of cargo flows between Izmail and Reni.

Previously, a significant part of the cargo gravitated towards Izmail due to cheaper land logistics. Delivery of wagons to Reni through expensive transit through the territory of Moldova often lost to alternative routes.

After the tariff reduction, Reni could become significantly more competitive for Ukrainian traders and cargo owners.

Earlier, USM reported that Moldova would reduce tariffs for rail freight transit by 50%.