Ukrainian Railways markedly cuts grain transportation cost

MOSCOW. July 5 (Interfax) - Ukrainian Railways has markedly cut the cost of grain transportation by rail (by reducing the car share in the tariff) and has begun to record an average car speed per quarter in the period until September 1, 2023, deputy head of the Ukrainian Railways department of commerce Valery Tkachev said.

"The cost of using grain hoppers of Ukrainian Railways has been 300 hryvni per day without VAT since July 1, 2023," Ukrainian media quoted Tkachev as saying on a social network.

According to the updated tariffs of Ukrainian Railways, it costs $9.4 and $11.4-11.9 to transport one tonne of grain by rail to a distance of 300 kilometers for exports via seaports or ground-based checkpoints, respectively. The tariff stands at $11.7 per tonne and $13.7-14.3 per tonne, respectively, on a distance of 400 kilometers, $13.4 per tonne and $15.4-16.3 per tonne on a distance of 500 kilometers, and $15 per tonne and $17.2-18.2 on a distance of 600 kilometers.

The cost includes additional fees of the station of departure (2,500 hryvni per car), two days assigned for car loading and unloading, freight charges, return of empty cars, etc.

The Ukrainian Railways board plans to record the average speed of cars before September 1, 2023 (per quarter) for higher predictability of consignors' work with its rolling stock.

Previously, an average car speed changed monthly and was reported on the 28th day of the month.

"That will allow consignors to plan their work with Ukrainian Railways cars better and estimate the cost of transportation with high precision," Tkachev said. He urged grain suppliers to be more active in using rolling stock of Ukrainian Railways for grain transportation.