Ukraine. Will the agricultural export by rail increase?

Source:  UkrAgroConsult
Author:  Maksym Kharchenko
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UkrAgroConsult

Article author:

Maksym Kharchenko
Freight Market Analyst

Agricultural exports by rail in July amounted to 681 K  mt. July is the fourth month in a row when exports by rail are in the range of 630-680 K mt. Until April 2023, the monthly shipments of grains and oilseeds by rail had been in the range of 0.95-1.15 M mt.

As of 9 August, the longest queues for crossing the western borders were at the following junctions:

  • Vadul-Siret-Dornesti (to Romania) – 8 days
  • Chop-Cierna nad Tisou (to Slovakia) – 7 days
  • Batyovo-Epereske (to Hungary) – 7 days

Whereas a year ago, the longest queue of grain cars at the border crossing was 36 days! The largest number of grain wagons is moving towards the border with Romania – 532 cars, and the average daily movement of wagons to Romania is 57 wagons per day.

Domestic demand for rail transportation towards the Big Odesa deep-water ports has disappeared, due to the grain agreement termination. At the same time, demand for railway transportation towards the Danube ports keep growing. More than 2,600 grain wagons are moving towards the port of Izmail, and at the current rate of unloading/transshipment of 100 wagons per day, the waiting time is at least 26 days.

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Further development of agri logistics in Ukraine and the Black Sea region will be discussed by leading agribusiness operators at the International Conference ‘BLACK SEA GRAIN & OIL’ on September 14 in Kyiv. Join us to find out the forecasts for the new 2023/24 season, prospects for investments, processing, logistics and exports for the recovery and development of Ukrainian agricultural industry.

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