Eight months have passed since Ukrainian exports almost completely stopped, and then changed. 

Since the beginning of the full-scale war and until August, all exports, including agricultural exports, went through the western borders. In August, the "grain corridor" played an important role.

During September-October 2022, about 60% of agricultural exports were sent thanks to the "grain initiative". Moreover, agricultural exports have not stopped but continue growing by land routes. However the problems are being solved slowly. 

Among the main obstacles on the shipping way of agricultural products were: delays at crossings, reloading narrow-railway cars and queues at ports. Including different foreign approaches regarding transportation, sales and transportation its own products in EU countries. 

According to “Ukrtransbezpeka”, as of November 1, the average length of queues at the western custom of Ukraine reaches more than 7 km: the longest at the border with Romania – 34 km; the shortest - at the Sheghini - Medica checkpoint (2.4 km) on the border with Poland. The entrepreneurs state that the truck waits at the border for at least 5 days. And it increases the cost of logistics. A member of the UAC and the director of the “Agro-Klasik” company, Volodymyr Prysyazhenko mentions that the long waiting triggers corruption at the border. Drivers often see some cars passing without a queue.  

"Mostly we transport grain by our own trucks. It is not profitable for us to use the services of "Ukrzaliznytsia" because of the high price and the time spent on delivery. Sometimes there are more deadlines than highways. Nevertheless, transportation through the border crossing checkpoints has a number of problems that must be solved by the state as a whole.The electronic queue system at the border is still not working. In general, the logistics of agricultural exports through the western checkpoints was not intended for a big amount of exports from Ukraine. Gradually, these problems are being solved, it can be noticed by the growing amount of goods transported in this direction," he said.

According to the data of the National Research Center "Institute of Agrarian Economics" of the National Academy of Sciences, the list of the main buyers of Ukrainian agricultural products has changed for the last eight months of 2022. Now it is headed by our European neighbors Poland and Romania.

According to Volodymyr Prysiazhenko, a comprehensive vision of all problems will help to solve the issues with exports through the western borders. 

"For example, it is necessary to make more complexes for transshipment from national wagons to European ones. Queues for this procedure increase the cost of logistics. The EU does not have the number of wagons that can take our grain. In addition, they are smaller in size and it is not possible to reload the wagon to the wagon. More wagons are constantly needed. Where possible, we will build railway of the same width to the port. It is necessary to continue the work of the "grain corridor" and eventually launch the electronic queue, but it is constantly postponed," says Volodymyr Prysiazhenko.

Reminder: the government's electronic queue system is aimed to reduce the time it takes to pass the custom. "eCherga" will allow you to register at the desired checkpoint in advanced. The system will work for free and it will not be necessary for drivers to go into the service zone. The system will automatically notify you when you need to move forward the checkpoint. First, "eCherga" will be implemented at the Yagodin-Dorogusk checkpoint, then it will be extended to others. The Cabinet of Ministers promised to launch the system by the end of October. 

Tuesday, 1 November 2022

 

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