Ukrzaliznytsia reduced cargo transportation by 51% y/y in January-November 2022

In January-November 2022, Ukrzaliznytsia (UZ) reduced cargo transportation by 51.1% compared to the same period last year – to 140.5 million tons. Rail.Insider reports about it.

“In the first two months of 2022, volumes in all types of transportation showed positive dynamics compared to last year and began to decrease after the start of Russian military aggression,” the report said.

In terms of transportation types, for January-November 2022, domestic transportation decreased by 48.6% y/y, export – by 45.8% y/y, import – by 68% y/y, and transit – by 75.2% y/y.

In January-October 2022, Ukrzaliznytsia reduced cargo transportation by 49.8% y/y – to 129.8 million tons. In October, UZ transported 12.06 million tons of cargo (-59% y/y).

Transportation of iron ore for 10 months of 2022 amounted to 29.31 million tons, which is 54.5% less compared to the same period of 2021. In October, iron ore transportation decreased by 77.9% y/y – to 1.43 million tons.

Railway shipments of steel products for January-October decreased by 54.2% y/y – to 8.27 million tons. In October, the indicator decreased by 62.3% compared to October 2021 – to 628.4 thousand tons.

After the invasion of Russia on the territory of Ukraine, domestic steel companies reduced the export of products to a minimum due to the blockade of sea ports and unfavorable market conditions. Due to the drop in prices for ferrous metals and a significant increase in the cost of delivering products to consumers, Ukrainian mining and processing plants are forced to stop or reduce the production of iron ore.

In 2021, Ukrzaliznytsia increased transportation of cargo by 3.03% compared to 2020 – up to 314.6 million tons. The share of ferrous metals in the total volume of transported cargo is 6.9%, and iron ore – 24.7%.