Ukrainian Railways expects freight traffic to grow 2% in 2024, including 26% rise from grain exports

MOSCOW. April 5 (Interfax) - Ukrainian railway operator Ukrainian Railways (Ukrzaliznytsia) forecasts an increase in freight traffic volumes of 2.2% in 2024 compared to 2023 to 151.6 million tonnes, Ukrainian media reported citing a presentation by the company.

Meanwhile, income from freight transportation is expected to grow to UAH 80.1 billion in 2024 from UAH 74.3 billion in 2023.

The increase in freight volumes is expected to come primarily from an 11.8% increase in export shipments to 62.6 million tonnes. Domestic transportation, on the contrary, will decrease 4.5% to 81 million tonnes. Transportation of imported goods should increase 4.4% to 7.1 million tonnes.

Ukrainian Railways expects to increase the volume of grain transportation for export 25.6% in 2024 to 28.5 million tonnes, the presentation said. In addition, ore transportation volumes are planned to increase 4.7% to 20.63 million tonnes.

Transportation volumes for grain reached 22.7 million tonnes in 2023, while ore totaled 19.7 million tonnes. In general, grain and ore accounted for 75.8% of the railway operator's export traffic in 2023.

The company said that structural transformations, digitalization, and the launch of new services have contributed to improved performance. A new intermodal service launched in 2023, which combines container and piggyback trains, as well as combined transport trains. Trains on the service have performed 305 round trips as of April 1, 2024.

The official exchange rate as of April 5 is 39.02 UAH/$1.