Port transshipment of iron ore for 10 months amounted to about 15.2 mln tons

In the same period, the handling of steel products at ports amounted to 2.9 mln tons

In the first 10 months of 2024, exports of iron ore totaled 27.9 mln tons (+96% y/y) for a total of $2.3 bln, semi-finished and rolled steel products – for $2.7 bln (+18.2% y/y). Judging by the transportation volumes, iron and steel complex cargoes have become the key cargoes for Ukrainian Railways’ operations.

The dynamics of increase in export transportation of iron and steel cargoes by rail for 10 months of the current year was as follows:

• iron and manganese ore – almost 2 times, up to 27.7 mln tons;
• ferrous metals – by 17%, up to 4.3 million tons.

The sharp increase in iron ore exports is due to the opening of the sea corridor in August last year, as a result of which the amount of ore cargoes towards the ports increased sharply. In January-October this year, Ukrainian Railways transported 15.2 million tons (or seven times more than the same period in 2023) of iron ore to ports, and 12.5 million tons (-2.3% y/y) to land border crossings.

Similarly, export transportation of steel products was reoriented. In the first 10 months of 2024, ferrous metals transportation towards ports amounted to 2.9 million tons (2.5 times more than in the same period last year), and towards border crossings – 1.4 million tons (-44.3% y/y).

The redirection of iron and steel cargoes to ports had a favourable impact on the port transshipment indicator. In January-October 2024, Ukrainian ports increased cargo handling 1.78 times year-on-year – to 82.1 million tons, of which non-agrarian cargoes (mainly iron and steel products) amounted to 31.4 million tons.

Importantly, ferrous metals already account for 17% in the structure of container rail transportation. In 2023, such transportation of metal products decreased by 8.6% y/y – to 30.3 thousand TEU. At the same time, the total growth of transportation of loaded containers in Ukraine last year amounted to 34% y/y – up to 201.3 thousand TEU, for 10 months of 2024 – by 41% y/y, up to 219.3 thousand TEU.

After agrarians, the largest clients of Ukrainian Railways in terms of transportation volume are iron and steel companies. After the outbreak of war, the cost of export logistics for iron and steel companies increased 3-5 times, which negatively affected the cost of production and competitiveness of Ukrainian products on world markets.