The work of grain logistics in Ukraine is undermined by an inefficient elevator system. This opinion was expressed by Anton Sabolevskiy, director of strategic development and investment policy of Ukrzaliznytsia.

The state-owned company calculated that the efficiency of Ukrainian elevators was half lower than in Canada, which has the same grain volumes as Ukraine.

Sabolevsky advises agricultural producers to consolidate their grain storage capacity, as well as reduce the number of small elevators shipped to the railway. And he says that the investment of grain market participants in the development of logistics is insufficient. This is where UZ sees the main cause of grain transportation inefficiency.

To achieve the Canadian level of development, farmers are encouraged to carry out the consolidation of more than 200 elevators. This “will reduce the cost of transportation and accelerate the turnover of grain.”

“With the production of grain in Ukraine in 65.2 million tons (2016) and in Canada in 55.3 million tons, the number of elevators in Ukraine is almost twice as high. To achieve the performance of Canada, it is necessary that the same volume of grain is processed with 500 elevators,” says Sаbolevskiy.

In UZ they also complain that in addition to the shortage of grain carriers, working with many small elevators also forms a shortage of locomotives. And the company bears the additional costs of fuel and lubricants and of locomotive brigades’ work.

We recall that earlier, in order to save funds, Ukrzaliznytsia announced its intention to close 127, in its opinion, low-cost stations and save at the same time about 600 million UAH. With this money, the company was going to buy 7.4 thousand wagons, of which 7 thousand were gondola wagons, 100 fitting platforms for the transport of freight containers and only 137 are the grain-carriers (1.8% of the total number of purchased wagons).

In general, it means that “Ukrzaliznytsya” is in no hurry to replenish the fleet of grain carriers. Over the past 8 months, it only reported on the repair of about 2,400 cars, while the working fleet of private companies grew from 4580 grain-carriers to almost 10 thousand.