The concept of UZ work is the transportation of raw materials, and not finished products

Jan 04 2024 published c Activity, earnings, news

At the last export office, the Association "Ukrkondprom" appealed to Ukrzaliznytsia for help. After all, many trucks with confectionery products got stuck at the borders because they were blocked by the Poles. Were they able to help you at UZ??

Ukrzaliznytsia did not help us much, although they sincerely tried, but this is how they work with the export of fast-moving consumer goods (consumer goods, — line.). Conceptual approaches, which UZ applies to the organization of cargo transportation, not very suitable for finished products. Suitable for raw materials. But they are them, of course, extrapolated to finished products.

And what exactly is the problem? Conditions, regulations, lack of rolling stock? 

The conditions are standard. And they are used for all types of products. The problem is that, that metal rolling can afford to "ride" around Ukraine for several weeks. Or go 300-400 km all week, although this distance can be covered in a day or two. Confectionery products, for example, the same chocolate, it is not desirable to transport like this. We need to know clearly the terms of delivery. And UZ cannot deliver in clear terms.

That is, UZ cannot give a guarantee, that will quickly and on time transport your products from point A to point B?

So, I can not say, that they did not try to help us during the meeting with the representatives of the University. We were looking for some options, but that, what they offer, does not make our exports too easy. You can talk a lot, but eventually we come down to simple numbers, which tell about the specific weight of transportation costs in the cost of products. We see, that according to this indicator, we are losing competitiveness with EU goods. Therefore, there are many questions regarding the operation of the UZ system itself: to the price, to the quality of transportation, to meet the deadlines. Railwaymen tell us about priority, which is provided to military cargo and humanitarian. We understand that - there is a war in the country. But the situation was similar before the full-scale invasion... We would like to, if the products are not delivered in wagons, then at least cross the border by rail. But even here they cannot give us any terms. For example, we see a build-up at a railroad crossing, relatively speaking, 4 thousands of wagons. Capacity of the border crossing per day, suppose, there are a thousand wagons. But UZ cannot guarantee, what for, conditionally, 3-4 days our wagons will cross the border. Rather, will form grain trains. Or with the same rolled metal. Unfortunately, the railway is still an unacceptable option for us. Or a very difficult option.

Confectionery goods are generally transported by rail?

For a long time now, we have only been driving abroad. Of course, by logic, it would be more convenient and cheaper to drive on the track, than in motor vehicles with an internal combustion engine, at the same time "breaking" roads. But for years the railway did everything possible for that, to "transplant" us and other food workers to vehicles. It is not cheap, but this is a more acceptable option for us today, than the railway. In order not to be blocked by the Poles. Actually, this is bad for the economy of Ukraine, because the increase in road transport quickly "breaks" the road infrastructure. So, Of course, it would be better to transport products by rail... But now it is not for us. Unfortunately.

The full text of the interview can be found at the link:

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