Economy 2024-04-15T05:09:32+03:00
Ukrainian news
Grain Transportation In Ukraine Doubling In Price From December - UCAB

Grain Transportation In Ukraine Doubling In Price From December - UCAB

Ukraine, Ukrzaliznytsia, grain, Ukrainian grain, grain transportation, grain carriers, cost of grain transportation

The Ukrainian Agrarian Business Club association (UCAB) declares that the expenses of agrarians for the transportation of grain by railway are increasing by almost 2 times from December 1, 2022.

This is stated in the message of the association, Ukrainian News Agency reports.

"Such growth is caused by the decision of JSC Ukrzaliznytsia to increase the actual rate for the use of a grain wagon by 53% from UAH 2,817 per day to the maximum level of UAH 4,300 per day and to reduce the speed of grain transportation by 45%. In fact, the minimum cost of transportation, for example, for an average distance of 650 km, rises from UAH 1,100 per ton to UAH 2,200 per ton. At the same time, the final cost of transportation can only be higher, because JSC Ukrzaliznytsia implements services for the use of grain wagons at auctions to increase prices," the statement says.

UCAB experts point out that in view of the artificial limitation of the supply of grain carriers at auctions by Ukrzaliznytsia, we should not expect a reduction in the cost of transportation.

"The queues of wagons at the western crossings also continue to accumulate, which reduces the overall speed of transportation. Last week, UCAB sent an appeal to the management of JSC Ukrzaliznytsia regarding the possibility of not increasing the rate for grain carriers by 53% at once, but so far we have only received comments from representatives of Ukrzaliznytsia, that this decision corresponds to the internal procedure of Ukrzaliznytsia, which was changed a month ago," the statement reads.

As Ukrainian News Agency earlier reported, in late June, the Ministry of Infrastructure increased tariffs for the transportation of goods by rail transport by 70%.