11:17 14.11.2016

UCAB asking PM to solve problem with grain transportation by rail

2 min read
UCAB asking PM to solve problem with grain transportation by rail

The Ukrainian Agribusiness Club (UCAB) has asked Ukrainian Prime Minister Volodymyr Groysman to interfere in the critical situation with transportation of grain by rail.

The association said in a press release that the letter was sent to Ukraine's Cabinet of Ministers on November 10.

"The situation with transportation of grain by rail hinders the harvesting campaign of late spring crops and puts under a threat the implementation of Ukraine's export potential," UCAB said.

The association said that due to delays with shipment of grain companies fail to implement exports contracts and reputation of Ukrainian exporters is spoiled. This would result in the loss of markets and fines for delay of supplies. The overloading of elevators hinders the harvesting campaign, as farmers have to suspend harvesting due to the absence of vacant storage facilities. The quality of grain is worsening.

The situation when the need in transportation of grain by rail 2.3-fold exceeds the real volumes appeared due to a lack of grain carriers, traction rolling stock and their bad technical state.

According to UCAB, losses of farmers from delays of grain shipment are estimated at UAH 100 million. If the situation continues worsening, the sum could swell over fines and additional technological spending.

AD
AD
AD
AD
AD