Ukrzaliznytsia explained why it is cheaper to transport grain to Pivdennyi than to Odesa and Chornomorsk

JSC Ukrzaliznytsia explained the reasons for the difference in the cost of rail transportation to Ukrainian ports.

This was stated by Valery Tkachev, Deputy Director of the Commercial Department of Ukrzaliznytsia, Latifundist reports.

According to him, the difference in the cost of transportation to the ports of Odesa and Chornomorsk is due to infrastructure restrictions, and not to giving preferences to certain ports.

Currently, there are two ways to deliver cargo by rail to seaports. The first way is along the Pomoshna-Kolosivka route, through the railway bridge near Voznesensk rebuilt in January 2025. The other is along the Pomoshna-Podilsk route, Tkachev explained.

He explained that cargo to the port of Pivdennyi is sent along the shorter Pomoshna-Kolosivka route (via the Voznesensky Bridge), while the ports of Chornomorsk and Odesa are served via Podilsk. The reason for this is the limited capacity of the Pomoshna-Kolosivka route, which decreased even more due to systemic attacks on the energy system, which caused restrictions on the power supply of the section.

As a result of Russian aggression, a significant number of energy facilities (power plants, district power substations, PL-110 (150)-330 kV owned by NPC Ukrenergo, DTEK) were destroyed, which led to unstable operation of the energy system of Ukraine, including in the Odessa, Mykolaiv and Kirovohrad regions. There, physically, fewer trains pass through during the day than before.

“Before the war, even before the destruction of the bridge, it was always like this, the Pivdennyi was always fed by this section, so we, roughly speaking, returned to the pre-war distribution of routes,” Tkachev commented.

He also noted that ore and metals are also exported through the ports.

“Therefore, today, if we have an additional opportunity to run more trains along a shorter route, we understand that we have volatility in transportation volumes along this route and we need to take it into account. Roughly speaking, tomorrow the flow of agricultural products to Pivdennyi will increase, we will no longer be able to process them,” Tkachev added.

Regarding the possibility of changing routes or providing additional discounts for transportation to other ports, Tkachev stated that Ukrzaliznytsia does not have the financial ability to provide such discounts due to the budget deficit, which at the beginning of the year amounted to UAH 24 billion.

Earlier, USM reported that ArcelorMittal demands a review of Ukrzaliznytsia’s decisions regarding routes to the port of Odesa.