28 Jun 2024 14:58

Ukraine's Danube ports lose competition with Odessa ones, requesting preferences

MOSCOW. June 28 (Interfax) - The Ukrainian Danube Shipping Company (UDP) has supported the call made by agricultural producers and exporters for the introduction of a 30% discount on rail services to the Izmail and Reni stations, Ukrainian media outlets said, citing a statement made by the UDP's press service on social networks.

"Ukrainian agricultural producers have proposed to the cabinet of ministers to put the Odessa and Danube ports on an equal footing. [...] The UDP fully supports agrarians' proposal. Ukraine must keep its alternative export routes," the statement said.

The Danube route includes the additional 250 kilometers of road, or the 200 kilometers of railway, the UDP said. Because of that, the Danube ports lose the competition even under the same freight and transshipment rates in effect at the Odessa ports, it said.

"The discount on railway services will completely pay off, if transshipment of grain to the state river or sea fleet is the condition of obtaining it. The state budget will compensate for the shortfall in income via the railway with the income from freight," the UDP said.