Ukraine and Poland seek to launch a logistics joint venture to help export products to the EU by rail. According to the Ukrainian News Agency, the Ukrainian Cabinet of Ministers revealed this idea in April, towards the end of the month. The news came after Prime Minister Denys Shmyhal and his Polish counterpart Mateusz Morawiecki signed a pact expressing their commitment to enhance rail freight volumes between the two countries. The blockade of Ukrainian seaports makes it difficult for Ukrainian goods to reach the global market. Currently, rail is the most important mode of transportation for farm commodities.
More is required
Poland has worked closely with Ukraine to provide the necessary rail connectivity since the beginning of the conflict in Ukraine. This collaboration can be expanded even further.
Russia is trying to cause a world food crisis by blocking Ukrainian ports. This should be avoided. Their export capacity, particularly for agricultural products, will be increased as a result of the signed pact on boosting collaboration in the rail industry between Ukraine and Poland. They can rapidly transport essential goods anywhere on the globe thanks to simple logistics for Ukrainian businesses. This is critical for their economy’s long-term viability, the Ukrainian Prime Minister was reported as saying. The need for updating border infrastructure, particularly the expansion of transportation hubs and border crossings, was also mentioned by the parties.
Export of grains
In 2020–2021, Ukraine was the world’s fourth largest grain exporter, with Russia in third place. Together, the countries make up for about 30% of worldwide wheat exports, nearly 20% of global corn exports, and far more than 80% of global sunflower oil supplies.
However, the majority of this export was done via sea, with railways accounting for only a small portion of the total. Ukrainian Railways had previously urged private businesses to engage in and construct rail freight facilities in the country’s western regions. It argues that even after the war, rail would be the most reliable form of transportation.
