Grain Export of Ukraine: Expert Opinion on Key Logistic Problems

3 Июн

The efficacy of grain cargoes delivery chain players’ coordination leaves much to be desired.

“The grain market comprises a considerable part of the port business. For the recent 5 years grain has been the only cargo to grow annually. The grain shipments enlarged from 27.5M t in 2012 to 40M t in 2018. The cereals embrace almost one third of the Ukrainian ports throughput, 38.7% only in the export range”, noted Head of CTS-Consulting Andrii Shkliar at the Ukrainian Ports Forum 2019.

But the growing export numbers created logistic problems as well, solution of which is vital for further development of both the agro-industrial complex of Ukraine and the country’s port sector.

The expert indicated the following problems to be the key ones for the industry:

“1. There exists a risk of the sector’s overload. We see the fall of prices which may worsen the investments volume.

2. The problem of port infrastructure, its interaction with the inland transport. We see a threat of the ports’ inefficient cooperation with the railways inasmuch as railcars are inefficiently employed. This leads to significant deterioration in this area which is particularly sensible in the season of active export.

3. Coordination with the inland transport, considerable urban problems caused by large quantities of trucks accumulating in ports in the active season.

4. Inefficient counteraction between all the delivery chain players.”

Ministry of Agrarian Policies and Food of Ukraine forecasts in case of favouring conditions the grain harvest at some 70.8M t in the current year against 70.1M t in 2018.
United States Department of Agriculture (USDA) in its May report forecast grain harvest of Ukraine in 2019 at 70.1M t.

From the beginning of 2018-19 MY (marketing year July 2018 – June 2019) the cereals export amounted to 45.4M t as of 22 May 2019.

https://cfts.org.ua/news/2019/05/30/ekspert_nazval_klyuchevye_logisticheskie_problemy_eksporta_zernovykh_53530