When the intensity of grain harvesting in the field declines, G.R. Agro is redistributing its own vehicles from “field-to-elevator” to “elevator-to-port” transportation. It is reported by “ProAgro Group” with reference to the information of the agricultural producer.
“Today we see a very difficult situation with railway transportation by “Ukrzaliznytsia”, which lasts from the second half of August. The delay of delivery of cars to the elevators after the request is 10-20 days,” – the company said.
Under these conditions its own fleet of grain carriers has become a very important insurance instrument for the timely delivery of grain to the ports. G.R. Agro points out that an active government program to build roads allows the company to retain its share of automobile transportation. A year or two ago, the dynamic on road conditions was very negative, affecting vehicle operating costs.
“Now it is expected that from October 1, 2021, all players in the road transportation market will adhere to a net load of up to 25 tons. At the same time, vehicle freight rates remain stable. The market has adapted and the main factor has been the increase in railroad tariffs. “Ukrzaliznytsia is changing its approach to pricing and recalculating tariffs, so the financial feasibility of grain transportation by rail is not so obvious,” summed up the company.
