The cost of logistics in Ukrainian seaports is overstated by approximately 40% compared with similar services in Germany, Ukraine’s Deputy Minister of Agrarian Policy & Food Vladyslav Rutitska said in a speech at a Ukrainian-German forum in Berlin.
"The cost of logistics in Ukrainian ports is about 40% more than the cost of the same services in Germany and 30% more than the cost in the United States," Rutitska said.
According to her, the grain sector needs a more efficient, competitive logistics system, and transshipment capacity will become insufficient in the future.
"Grain logistics in Ukraine is faced with another challenge - insufficient capacity. A holistic investment and reform program is needed. The capacity of grain terminals in seaports allows the handling of up to 33 million tons of grain (85% capacity utilization). This is sufficient to export the volumes of grain that Ukraine currently produces. However, greater capacities are needed to further increase exports," said the deputy minister.
As stated in a press release, the grain handling capacity in Ukraine has reduced by about 10% following the loss of Crimean ports. At the same time, the capacity utilization at grain terminals has increased from 62% in the 2012/2013 marketing year to more than 100% in the 2014/2015 marketing year because of an increase in exports.