Ukrainian Railways boosts container shipping in 2023

MOSCOW. Jan 11 (Interfax) - JSC Ukrainian Railways transported 201,260 20-foot-long containers in 2023, which is 34% more than in 2022 and is similar to the 2019 figures, Ukrainian media cited deputy director of the company's commercial operations department Valery Tkachev as saying at an intermodal transport development meeting on Wednesday.

Container shipping by Ukrainian Railways had annually grown 11%-22% for four years before the start of the crisis, including by 14% in 2014, but plunged 46% to 150,000 TEU in 2022, Tkachev said.

"Whereas we reached 279,792 TEU in 2021, we dropped to 150,000 TEU in 2022, i.e. by 46%," he said.

The prompt recovery of container transport in 2023 was due to the blocking of Ukrainian seaports, he said.

"If we look at the figures, exports account for 62% of the entire container shipping volume, internal deliveries for 19%, and imports for 19%," Tkachev said when describing this market.

The post popular commodity shipped in containers is grain - 49%, Tkachev said. It is followed by ferrous metals (17%), oilseed residues (14%), and vegetable oil (10%).

Though the 2023 results are positive, they are still far below the target of more than 1 million TEU per year set in Ukrainian Railways' development strategy, Tkachev said.

Ukrainian Railways launched its "intermodal train" service in March 2023, using nearly 200 such trains since then, he said.

Rate-setting problems emerged after container transport services to Poland were tested in December 2023, he said.

"We are still receiving bills from the Polish side. We agreed on an all-inclusive rate, but Polish colleagues continue to adjust it. That is why, we are now working with the Polish side to secure a unified all-inclusive rate for this service, and then we will be able to work more rhythmically and operate container trains," Tkachev said.