Ukrainian farmers overpay UAH 6 bln for domestic logistics by rail in 2022

MOSCOW. Dec 11 (Interfax) - The members of the Ukrainian parliamentary committee on agrarian and land policy have expressed concern over numerous instances of inefficient use of grain cars and overpaying UAH 6 billion for Ukrainian Railways' domestic transportation in 2022, Ukrainian media reported citing the Verkhovna Rada office's press service.

"The crisis, blocking of ports and changing the usual routes of Ukrainian goods to the global markets have affected the agricultural sector. The unmet demand for certainty and responsibility in the rail logistics has considerably intensified the impact of economic shocks, in particular, on the agrarian sector," the relevant parliamentary committee said at a meeting dedicated to the state and problems of agricultural logistics using railway infrastructure.

The farmers overpaid UAH 6 billion for domestic rail logistics of grain and spent around UAH 30 billion for the purchase of excessive transport in 2022, the statement said. The higher logistics costs have incurred the largest losses to the agrarian sector.

The lawmakers expressed concern over the mass instances of prolonged idle time and inefficient use of Ukrainian Railways' grain freight cars, while the capacity of private rolling stock is fully exploited. The lawmakers view the high price of Ukrainian Railways' carriages as the reason behind this situation.

"Following the discussion, the committee decided to turn to the Ukrainian Restoration Ministry and Ukrainian Railways and hear a report on the effectiveness of the rolling stock's use for logistics transportation of agricultural products for their further export," the press service said.