Agricultural producers of Ukraine are calling for discounts on rail transportation of grain to Danube ports
Ukrainian farmers appealed to the Cabinet of Ministers with a proposal to implement a 30% discount on rail transportation of grain cargoes to the ports of Izmail and Reni on the Danube. This initiative is caused by the need to support alternative export routes in the conditions of constant enemy attacks on the infrastructure of Odesa.
About this informs press service of the Ukrainian Danube Shipping Company.
“This is plus 250 kilometers of highways, or 200 kilometers of railway. We will lose the competition even if the rates for freight and transshipment are the same,” – explained in the shipping department.
According to representatives of the Ukrainian Danube Shipping Company (UDP), logistics to the ports of the Danube are more expensive and longer compared to the ports of Great Odesa, which puts Ukrainian farmers at a disadvantage on the world market.
“Therefore, part of the export must move through the Danube. We discussed it at all industry events, forums, and conferences. They agree with us. We are supported. But in conditions of critically low grain prices, producers and traders are not ready to lose earnings (margin) for the sake of reducing risks.” – stated in shipping.
The UDP supports the farmers’ position and emphasizes the importance of preserving alternative export routes. Experts suggest compensating the revenue not received by the railways at the expense of freight to the state river or sea fleet.
