It might sound surprising, but Ukrainian Railways just broke a volume record that has been intact since 2021. Despite continuous challenges in the past years, the state-owned operator recorded an impressive 60 per cent year-on-year increase in TEU (totalling 116,129 TEU) in the first five months of 2024, the highest volume of containerised cargo transported in the last seven years.
It’s worth noting that Ukrainian Railways last achieved such volumes in 2021, despite its performance that year being 10 per cent lower than in H1 2024. Another crucial point to consider is that in 2021, 16 per cent of the volumes were attributed to transit traffic, a factor that is no longer the case in 2024 due to the ongoing war.
According to the company, a diverse range of goods were shipped in containers, including grain (39 per cent), ferrous metals (15 per cent), pomace (7 per cent), oil (6 per cent), synthetic resin (4 per cent), sugar (3 per cent), and chemicals (2 per cent). About 25 per cent of freight shipped in containers in said period was imported, 61 per cent exported, and 14 per cent transported domestically.
More capacity on the way?
News recently highlighted that Ukrainian Railways is set to receive financial support of roughly 500 million euros. Part of it will come from the European Bank for Reconstruction and Development (EBRD) as a loan and from the World Bank and Switzerland as a grant. This amount will be invested in rolling stock, mainly for purchasing electric locomotives, which are much-needed assets for the Ukrainian operator and scarce at the moment.
Ukrainian Railways is also expecting more deliveries. As part of the RELINC project, backed by UNOPS and funded by the World Bank, the company will receive around 200 new flatbed wagons worth 15 million US dollars in July. “These wagons, currently in production, are platforms used to transport standardised shipping containers, further enhancing the efficiency and capacity of Ukraine’s rail transport system,” commented UNOPS, highlighting the role that the new equipment could play in the development of volumes.
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