Ukraine. Railway tariff for grain delivery to the port of Reni is becoming cheaper

UkrAgroConsult

Article author:

Maksym Kharchenko

Freight Market Analyst

Grain can only be delivered to the Danube port of Reni by transit through Republic of Moldova. The transit costs through the relatively short 129 km route through Moldova was $9.4 per ton, while the delivering a ton of grain from Kyiv region to the port of Odesa (about 350 km) was only $18. The market complained of the high transit and Ukrzaliznytsia finally managed to negotiate a discount.

The railway to the port of Reni passes through the territory of Moldova

The discount is valid from July, 15 and covers the following:

• Delivery costs from the south-east of Moldova to the port of Reni in the south – 129 km, a discount from USD 9.4 per tonne to USD 6.6 (this rout is shown on the map above);
• From the north of Moldova to the port of Reni – 557 km, a discount from $29.6 per tonne to $20.9;
• From the north of Moldova to the western part of the border with Romania – 216 km, a discount from $14.7 per tonne to $10.3.

The agreement on discounts between the Ukrainian and Moldovan railways stipulates that discounts will be calculated at the end of each month if the agreed volumes of grain transited through Moldova. That is why Ukrzaliznytsia calls on Ukrainian exporters to increase transit traffic through Moldova.

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Tags: rail transportation, Ukraine, export, grain, Romania, Moldova