How the colossal project of transporting Ukrainian grain via rail networks works

The rusty railways connecting Reni in the southwestern corner of Ukraine with the port city of Galati in Romania have long gone down in Soviet-era history, as they are no longer used. About a quarter of the 20-kilometer line is missing.

However, like other remnants of the Eastern Bloc’s old network, the route along the Danube could eventually play a small role in an increasingly large and complex operation to secure vital food shipments, according to Bloomberg.

European leaders are desperately trying to find a way to get grain from Ukraine, whose exports are usually higher than those of the entire European Union. Russia, which has been accused by the United Nations of threatening global food security, said last week it would open sea lanes to unblock ports such as Odessa on the Black Sea if sanctions against the country were lifted. Ukraine, however, has been cautious about security concerns.

Battle with time to avoid a food crisis

The labyrinthine challenge has made politicians scrutinize everything from naval escorts to land transport of grain to the Baltic. Officials at ports, logistics companies and agricultural companies across the region say they are looking on maps for solutions such as diverting road transport and reviving rail links such as Galatasaray.

The project is complicated by the lack of truck drivers and the fact that the Soviets used a wider railway line than the European standard. This has caused delays of up to 30 days at borders for existing routes, according to the EU, as cargo has to be transported on a compatible route and customs infrastructure is overloaded.

The ports in Romania and Poland, meanwhile, are overcrowded or have already run out of capacity, and there is a shortage of qualified staff to manage increased demand. Even with Ukrainian exports falling by a fraction of what they used to be, trade officials warn that the entanglements will worsen as the rest of Europe begins harvesting its wheat next month.

“The scale of the problem is enormous,” Taras Kachka, Ukraine’s deputy economic development minister, told a conference this month. “Over the last 15 years, we have developed our infrastructure in such a way that they can not simply be replaced by another destination, another port.”

Ukraine is a major supplier of wheat, corn and barley and ranks first in world sales of sunflower oil. Future crops will undoubtedly shrink due to the war, but it still has 20 million tonnes of stored grain from last year.

Ukraine expands export capacity on its western border and simplifies trade arrangements with the EU. European Commission President Ursula von der Leyen said on May 24 that the EU is working to transport what is stuck in Ukraine to world markets. , opening “solidarity lanes” in European ports, as well as financing various modes of transport. Ukraine’s ambassador to Warsaw expects Poland to be the gateway through which 80% of Ukrainian grain will be transported.

But people in the field say that this is easier said than done when you look at the map, especially the rail network.

In Slovakia, the main carrier transported 18,000 tonnes of corn from Ukraine last month by 12 trains, with private freight companies involved. The point is that cargo from Ukraine’s wider-line wagons must be reloaded into normal European-sized wagons.

Poland has a 400-kilometer-wide railway line that connects Ukraine with the industrial area of ​​southwestern Silesia. It is mainly used for steel products and in recent weeks for the transportation of refugees. The state-owned operator of the PLK SA railway network has begun investing in capacity building, reversing its previous focus on connecting to China via Belarus.

In April, Poland and Ukraine also agreed to set up a joint freight company and simplify border rules. But with routes to Poland’s Baltic ports already busy and a shortage of wagons, there are doubts as to whether Poland can increase the volume of Ukrainian grain to well over 2 million tonnes a month soon.

By contrast, tonnes typically shipped monthly through Black Sea ports amount to 5 to 6 million tonnes, said Roman Slaston, general manager of the Ukrainian Agribusiness Club.

The railroad from Reni to Galatia via Moldova would be a relatively small piece of the puzzle, but it shows the magnitude of the challenge.

TTS, a Romanian company operating on the Danube and in the port of Constanta, is working to clear shrubs and small trees to clear the way. “We are a logistics company and we have done a lot in this life that defies geography,” Ion Stanciu, TTS ‘deputy chief executive, said in an interview on May 20.

Romania wants to upgrade Galatasaray to reduce congestion in Constanta. Galati is connected to a wide railway line that is compatible with the Ukrainian system and can facilitate faster re-routing of grain. The government wants to speed up the construction of the missing 4.6km section and work will take three months, Prime Minister Nicolae Ciuca said last month.

However, it is not yet clear who will do it, according to TTS, which has spent two months trying out logistics options by rail or truck. The route includes three countries and three different railway companies. Romania’s transport minister has said he hopes to find a company that will build the missing section of the line this week and can visit Galati with his Ukrainian counterpart.

“Ukraine has exported 20 million tonnes of metals a year and even more cereals by sea alone, so the thought that these possibilities could be completely replaced is a dream,” said Petru Stefanut, TTS CEO. “What we are all trying to do is help them as much as we can. But we can not compare what they had and what they lost.”

TTS has been able to transport about 200,000 tonnes of grain and metals from Ukraine over the past two months, although Stefanut is confident more will come as Danube routes become more efficient.

Ukraine’s agriculture minister expects another 30 to 40 million tonnes of grain to be exported after this summer and autumn harvest. While cereals can be stored, farmers must sell them to raise funds for 2023 sowing, with winter crops such as wheat sown in a few months.

The opening of the port of Odessa is of key importance

At the same time, Lithuania is leading an effort to liberate the port of Odessa, but this is proving to be complicated due to the security situation on the Black Sea.

Lithuania could handle about 8 million tonnes a year through the Baltic port of Klaipeda, but can only handle 1 million tonnes via Polish railways, according to the country’s transport minister. A pilot rail shipment of agricultural products from Ukraine lasted three weeks.

“Alternatives to Odessa simply do not exist to send the quantities of grain that Ukraine has accumulated and will accumulate in the summer,” Gabrielius Landsbergis said on May 26. “Either we have to accept that the grains will rot, a part of the world will face food shortages and prices will rise, or we have to find ways to unblock Odessa.”

For now, the most realistic solution remains Romania, Constanta and the Sulina Canal, which connects the Black Sea with the Danube. The port’s customs service has added staff to help manage the increase in cargo, with ships queuing to enter. The Ukrainian railway network management company has decongested its connections with the port and has started improvement projects, which could lead to a 30% to 40% increase in capacity as early as next year, said the director of the Florin port. Goidea.

“We are waiting for much larger quantities to arrive, this is just the beginning,” he said. “This summer will be very full. It will not be easy for us, but we have to find solutions.”