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13:43
SHORTAGE OF GRAIN WAGONS DUE TO INEFFICIENT USE, SAY EXPERTS

Kyiv, August 6 (Interfax-Ukraine) – The reason for the shortage of grain wagons in Ukraine is their inefficient use, according to experts from Management Consulting Group.

"Usually the procedures with customs, ecological and biosecurity services last several hours and not a whole week as it does now. As a whole, 80% time is used to load and unload grain and only 20% - for its shipment," reads a press release of the group, citing the head of the analytical group, Dmytro Podturkin.

In particular, the expert said that a lack of wagons is linked to standstills during loading at cargo dispatchers, a delay of wagons on railways of other states and at ports due to the complicated regulatory approval system.

The group said that another factor causing a shortage of wagons is the shortage of processing facilities at ports and elevators, which explains a long delay of rolling stock at ports.

"Grain traders are not interested in building elevators and expanding their own rolling stock. The creation of the deficit of storage and transportation facilities promotes the avalanche-like saturation of the domestic market with grain during the harvesting campaign. Producers, who don't have places to store grain and wagons to ship it, are have to sell it at lower prices compared to international prices, which gives additional profits to traders," the group said.

The report says that Ukraine's State Railway Administration (Ukrzaliznytsia) provides normal conditions for grain transportation to farmers.

"Around 11,600 grain wagons of Ukrzaliznytsia can provide for the shipment of previous years grain harvest and this year's record grain harvest. The existing rolling stock can ship at least two million tonnes of grain per month," reads the release.

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