Ukraine’s railways are struggling with grain wage delays on the country’s western border as traders look for alternative export routes following Russia’s invasion of the Black Sea ports, APK-Inform reported today, according to Reuters.
Ukraine was the fourth largest exporter of cereals in the world in 2020/21, according to the International Cereals Council, with most of its goods being shipped via the Black Sea.
But with the war raging along much of the coast, traders are trying to transport more grain by rail.
According to APK-Inform, the Ukrainian railways have opened 12 terminals for traders, but the wagons have accumulated and the railways will need two or three weeks to process them and carry out the shipments.
“Traders continue to look for the possibility of redirecting exports to the EU by rail or through Romanian ports, but the main obstacles remain the limited supply capacity and its high cost,” he said.
The cost of delivering Ukrainian grain to the Romanian port of Constanta was 120-150 euros per tonne. Before the war, traders paid about 35 euros to transport grain to Ukraine’s Black Sea ports.
Analysts say Ukraine, which exported 43 million tonnes of grain from July until the end of February, could only export about 1 million tonnes over the next three months due to the hardships of the war.
Before the war, the government predicted that grain exports could reach 65 million tonnes for this period.
Source: Capital
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