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Posted On

24
February
2023

Ukrzaliznytsia lowering prices amid falling demand for freight cars since Feb 24

KYIV. Feb 24 (Interfax-Ukraine) – Ukrzaliznytsia from February 24 plans to reduce the cost of using state-owned grain carriers by 33.4%, to UAH 1,806 per day, and gondola cars – by 77.3%, to UAH 312 per day, Valeriy Tkachev, deputy director of the department of commercial work at Ukrzaliznytsia, said at a meeting with market participants on Thursday.

“Ukrzaliznytsia plans to reduce the actual rate for the use of the company’s grain carriers to UAH 1,806 per day when transporting grain in the direction of ports and for domestic transportation. This proposal will make the company’s wagons more competitive in the deregulated wagons market, and will also significantly reduce the cost of grain transportation for farmers,” Tkachev said.

According to him, Ukrzaliznytsia will raffle in the electronic trading system ProZorro. Sale wagon shipments in the company’s grain carriers in the Dutch auctions mode (to lower the price), while the lowest possible price for a grain carrier will be fixed at UAH 1,806 per day with starting price of bidding – UAH 4,300 per day.

Auctions with the announced minimum bid will be held on February 24, 25, 26, and 28, as well as on March 1, 2, and 3, 2023. “We plan to put up for auction 200 wagon shipments per day in the direction of ports and 200 wagon shipments for domestic transportation and in the direction of western border crossings,” Tkachev said.

He also noted that in the wagons market there is a decrease in demand and, accordingly, a decrease in the cost of renting grain carriers. The results of the latest trades in the ProZorro. Sale for the sale of grain carriers confirmed this. So, on February 17, the company sold 90% of the exhibited wagon shipments in the direction of ports at the auction with an average cost of UAH 2,795/day, and all 50 wagon shipments in domestic traffic were also sold at a price of UAH 2,384/day.