Due to the increase in the tariff of Ukrzaliznytsia, there was a threat of shutting down the Ukrainian Danube Shipping Company
Due to the planned increase in Ukrzaliznytsia tariffs by 37%, the operation of the fleet of the Ukrainian Danube Shipping Company (UDP) in the direction of the Romanian port of Constanta may cease.
Deputy General Director of UDP Vladyslav Belakh noted, that now the shipping company is engaged in the transportation of Ukrainian agricultural products to the port of Constanta and is actively working on increasing the volume of transportation.
“We have repeatedly appealed to the Cabinet of Ministers with proposals to introduce a discount on the Ukrzaliznytsia tariff to Izmail, in order to at least partially compensate for the difference with the cost of delivery to Odesa. The planned increase in the Ukrzaliznytsia tariff will increase the logistics cost of 1 ton of grain through the Danube ports by approximately $5 and will put the Danube in an even more unfavorable position compared to Odesa. The work of the fleet in the direction of Constanta will simply stop.” – he emphasized.
According to Belakh, UDP is ready to offer “Ukrzaliznytsia” reverse loading in Izmail at the expense of coal imports. In order to preserve Danube logistics as a strategically important channel for export and import, the UDP turned to the Ministry of Community and Territorial Development under the leadership of Oleksiy Kuleba.
“We appeal to the leadership of the Ministry and the Cabinet. Keep the tariff for railway transportation to Izmail unchanged. The war continues, war risks are actual. If exports from Odesa, as in 2022-2023, are at risk, we will have to spend time reviving Danube logistics.
Business will once again face sky-high rates and fleet shortages. If they listen to us and support us, UDP will receive a guaranteed monthly cargo flow of 150,000–200,000 tons. tons (1.2–1.5 million tons per year) and will be able to ensure exports, both in the case of blockade of sea ports and the western border. – said in the statement of the UDP.
