News
06.12.2016
Twice as much of wagons are necessary for timely export of grain
According to UCAB estimates, the necessity of grain wagons for uninterruptible transportation of grain crops, oilseeds and their processed products taking into consideration peak load in the fall period amounts to 22,000. It is approximately twice as much of available quantity today. Hence, at the present time there is an acute shortage of rolling stock. Due to the shortage of wagons agricultural producers are not able to fulfill export contracts to the fullest extent a well as complete the harvesting campaign since the elevators are overloaded now.
From 2017 the PJSC ‘Ukrzaliznytsia’ intends to raise tariffs for freight transportation (including grain crops) by 25% substantiating it by the necessity to increase investments in the current assets. According to UCAB estimates, this increase will result in incurring additional costs by the farmers for grain transportation at the level of UAH 1.5 billion. At the same time, UZ disclosed its plans to purchase 1,070 grain wagons the next year that will improve grain logistics in terms of railway transportation.
‘Announced plans to purchase new grain wagons are certainly positive news. Although, at such rate of renewal of the grain wagons fleet, the required quantity will be reached only in ten years. In order to improve situation with the grain logistics, it is necessary to ensure maximum efficiency of the use of available grain wagons, comply with strategy of UZ rolling stock renewal as well as encourage private sector to increase quantity of their own grain wagons that will enable within the shorter time to bring their quantity to the required level and facilitate development of a competitive environment in this area’, summarized Taras Vysotskyi, General Director of the Association ‘Ukrainian Agribusiness Club’.
