In Ukraine, grain rail transportation has become cheaper.

The average cost of transporting grain by Ukrainian Railways (UZ) owned wagons decreased by 36% from December 2022 to January 2023, says Valery Tkachev, the company’s top manager. He specified that at the last auctions, the rate of payment for the use of grain wagons dropped to UAH 2,800/day and continues to decrease. In December, the average price of a grain wagon was UAH 4,385/day, and the highest price was recorded in October 2022 at UAH 11,574/day. As Tkachov noted, the reduction of the wagon component in the overall transportation cost significantly reduces the logistical costs of grain transportation for farmers. On average, the costs for grain transportation within Ukraine decreased by $29 per ton. The price for grain export toward Ukraine’s western borders was reduced by $17.6 per ton and by $17.2 per ton in the direction of ports.