Ukraine is expecting to achieve a total rail freight volume of 162 million tonnes “at best” in 2025. That is less than in 2024, when Ukrainian Railways (UZ) transported 175 million tonnes. UZ sees losses in its traditional freight base, so it is looking elsewhere for future growth.
“Unfortunately, we are seeing a degradation of the cargo base. First, we are losing coal, which has always occupied the second, third position”, explained Valeriy Tkachev, deputy commercial director at UZ.
Ukraine lost 122 mines in the first two years of the war, meaning that there is simply less coal to transport. The result of the losses is a best-case scenario of 162 tonnes in 2025. UZ transported around 315 million tonnes before the war.
Ore transportation in Ukraine has also decreased by 4%, and grain transportation is decreasing as well. In 2025, UZ expects to transport around 35 million tonnes of grain, down from last year’s 40 million tonnes.
Traditional freight in decline
The conclusion is that UZ’s freight business is in decline, and that is primarily due to its traditional freight base. The company is losing volumes in ores, coal, mining and construction materials, Tkachev explained at an expert discussion.
To address the situation, an active search for new freight is underway. The search specifically focuses on retail and SMEs, including forest products, industrial goods, and various other segments.
Ukrainian Railways has also increased its foreign economic activity, Tkachev pointed out. Its subsidiary UZ Cargo Poland is significantly boosting cross-border freight transportation. The company also prioritises the development of trans-European and cross-border transports.
The company is implementing various initiatives, including optimising internal processes, reducing unproductive infrastructure, and streamlining personnel, especially within the central management office. Additionally, it is selling scrap metal and crushed stone products and transitioning to direct electricity purchases from Energoatom.
Similar streamlining activities at UZ were pioneered by the Repair and Production department. Its manager, Yevhen Shramko, told RailFreight.com all about it.