Grain Logistics in Ukraine is much more expensive than in France, Germany, and the United States. Logistics costs in Ukraine amount to about USD 50 per ton but they are 30-40% lower in competing countries.
Oleh Nivievskyi, an adviser on agrarian policy at the World Bank Group, announced this at the industry conference "Grain Forum & Maritime Days 2016," the CFTS correspondent reports.
"Last year, the World Bank wrote a major report with the participation of experts from CFTS, APK-Inform, and others. We looked at the entire agricultural logistics chain – how much it costs, its main components, and the main problems.
“The main thesis of this report is that Ukraine has insufficient infrastructure, considering the fact that agricultural production is increasing in Ukraine. If the volume of exports increases to 80 million tons as predicted, we estimate that it will be necessary to invest about USD 1.5 billion primarily in storage of grain.
“Another thesis is that grain logistics in Ukraine is much more expensive than in France, Germany, and the United States. Logistics costs in Ukraine are about USD 50 per ton but they are 30-40% lower in countries competing with us," the expert said.
In addition, the World Bank studied the issue of high port costs in Ukraine. According to Nivievskyi, “transshipment costs in Ukrainian ports are about USD 18 per ton, compared with about USD 7 per ton in countries competing with us in the Black Sea basin, which creates uncompetitive conditions. The costs that cargo owners incur in ports can be reduced by reducing port charges."
