Ukraine. New reality in the market of grain-carrying railcars

At the beginning of this year, the private fleet of grain carriers included 17.600 units, while Ukrzaliznytsya owned 11.200 railcars. The sharp rise in the number of grain carrying railcars has toughened competition between Ukrzaliznytsya and private companies in the field of railcar leasing. According to open trade sources, it may be cheaper to lease private railcars than state-owned ones, UkrAgroConsult reports.

Major railcar owners will probably behave according to the following scenarios:

– Ukraine’s State Administration of Railroad Transportation invests in increasing the efficiency of utilization of its railcars;

– Ukraine’s State Administration of Railroad Transportation imposes additional restrictions (mostly bureaucratic ones) on the use of private railcars – this pushes up the cost of their lease;

– gradual equalization of lease rates in the railcar lease market, when prices align mostly with those of owners of large railcar fleets.

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UkrAgroConsult