World Grain - June 2017 - 92

FEATURE: LOGISTICS PROBLEMS HINDERING BLACK SEA TRADE

ple. In the summer last year, the government introduced limits on truck weight
and our rail system can't cope. About
30% to 35% of grain was taken to port
by trucks before, but now it's down to
20%. So we are relying more on rail but
the condition of the railways in Ukraine
is not good. The cars are obsolete and
producers have no protection from logistics problems."
Despite Ukraine's extensive river system, switching shipments to barge in any
substantial volumes is also not possible
due to decades of under-investment.
"Our rivers are not really used, at the
moment only taking about 1.2 million to
1.5 million tonnes, which I think could
be enlarged," Osadchuk said. "We don't
have enough barges. But this has potential
if we build more barges. But at the moment there is no certainty about the laws
so it's hard to design new barges and atWUDFW LQYHVWPHQW LQ WKH ULYHU ÀHHW HLWKHU

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"For Ukrainian exporters, each region
has different needs by mode, but all
need amendments to the truck law. We
think it should be about the number of
axles on the truck, not the weight. Also,
the industry would be happy to pay a fee
to repair the roads.
"We could grow exports to 80 million tonnes, but this expansion needs
to be supported by logistics. And the
industry needs to know that any money
it spends on transport fees will be spent
on transport upgrades. We'd like more
private rail grain operators - it's more
than 15 years since railroads were selfVXI¿FLHQW 3ULYDWH EXVLQHVV VKRXOG EH
able to buy cars and wagons for its own
use. But if the state also constructed new
wagons that would also be good.
"Our ministries and agencies should
be taking decisions instead of quarrelling. Today we don't have people in our

Solutions to wear, noise and improved performance

ministries that make decisions. They
need to move from words to actions to
help our industry, and if new rules are
adopted, they should be the same for all.
Not so some stick to rules and others get
away with not."
Speaking to World Grain after the
event, Maksym Kharchenko, logistics
market analyst at UkrAgroConsult, the
conference host and organizer company,
said Ukraine's grain export supply chain
would continue to rely on its railways.
"Sixty-seven percent of Ukrainian
grain is delivered to the ports by rail,"
he explained. "Thus, the worst bottleneck in grain logistics is the availability of grain-carrying railcars. This year
the Ukrainian Railways has announced
a plan to add 1,000 more grain cars to
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carrying railcars. However, this measure will evidently not be enough. Grain
shipping down the Dnipro River could

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World Grain - June 2017

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