Ukraine ag group slams rail operator Ukrzaliznytsia over grains performance

The Ukrainian Grain Association (UGA) has slammed the pricing and performance of Ukraine’s state railway operator Ukrzaliznytsia over the way it supports the country's grain movements.

In a press conference Thursday, UGA also put forward 10 proposals to improve performance.

Critics say the country’s substantial agricultural potential is held back by poor logistics, with the railways frequently singled out for old and unreliable rolling stock, a lack of engines, and lines in need of substantial upgrades.

Ukrzaliznytsia carries some 70% of all Ukraine’s grain movements, with the country exporting in the region of 40 to 45 million mt or between $6 billion and $8 billion worth of grain.

UGA’s president, Nikolay Gorbachov, accused Ukrzaliznytsia of increasing rail fees twice in the 2017/18 marketing year – the most recent in February 2018 – and has failed to use that extra revenue to invest in new wagons.

Much of Ukraine’s grains wagons first came onto the railways in the 1970s or 1980s.

The ten proposals include urging further investment into engines and grain trucks, providing greater transparency on where rolling stocks is and to review the process of deregulating the national railways.