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Ukrzaliznytsia

Transportation of ferrous metals last year amounted to 12.5 million tons

In 2022, Ukrzaliznytsia (UZ) reduced the transportation of iron and manganese ores by 45.9 million tons or 59.2% compared to the same period last year – to 31.7 million tons. Rail.Insider reports about it with the reference to UZ data.

The transportation of ferrous metals last year decreased by 57.8% compared to 2021 – to about 9.2 million tons. In total, during the year UZ transported 150.6 million tons of cargo, which is 52.1% less compared to 2021 .

At the end of the year, domestic cargo transportation accounted for 50.6% of the total volume of processed cargo. Compared to 2021, domestic transportation decreased by 49.2%. In 2022, the share of export transportation was 39.5% (-47.1% y/y), import – 8.2% (-69.5% y/y).

“In the first two months of 2022, volumes in all types of transportation showed positive dynamics compared to the previous year and began to decrease after the start of large-scale Russian military aggression. In absolute terms, Ukrzaliznytsia lost iron and manganese ores the most,” the report says.

Since the beginning of the war, Ukrainian steelmakers have experienced difficulties in shipping finished products for export. The blockade of the ports forced to reorient the shipment of products exclusively to the railway. Because of this, the company’s logistics costs have increased several times and the delivery time has increased significantly. Border crossings could not cope with such an influx of railcars, due to which railcars with products stood in queues for weeks. After the opening of the grain corridor, the situation has improved, but remains tense.

As GMK Center reported earlier, in 2021, Ukrazliznytsia increased railways shipment of finished steel products by 5.9% compared to 2020 – up to 21.7 million tons. Export transportation increased by 3.8% by 2020 – up to 15.7 million tons.

In 2021, UZ reduced transportation of iron and manganese ores by 2.7% compared to 2020 – to 77.6 million tons. Export transportation in 2021 fell by 3% y/y – to 44.6 million tons, and domestic – increased by 3.1%, up to 27.7 million tons.