The cost of renting food tanks has increased sharply at Ukrzaliznytsia auctions

At the auctions of Ukrzaliznytsia on October 15, organized by the CTL branch using the Prozoro.Prodazhi system, the rental rates for tanks for transporting food products increased by more than 20 times.

 

If at the beginning of the day the rate was 1,750 UAH/day excluding VAT, then during the bidding at two auctions it reached 42,000 UAH/day, and at the third – 40,000 UAH/day, while at previous biddings the maximum rates did not exceed 13,000 UAH/day.

 

According to the terms of the auction, the wagons must be loaded from October 20 to 31, and the highest bid was offered by OKKO-Agrotrade LLC.

 

Food tankers are used to transport bulk food cargoes, particularly vegetable oils. A sharp increase in their rental rates will increase costs for processors and exporters, especially those using rail as an alternative to sea exports.

 

It should be noted that the base rate for renting CTL tanks in October is 1,750 UAH/day excluding VAT. And the price of 40,000 UAH, obtained as a result of the auction, was formed due to competition between bidders, and not due to an increase in UZ tariffs.

 

The results of the auction indicate high demand for a fairly limited fleet of special wagons, which exporters need to take into account when planning transportation.

 

We would like to remind you that the Cabinet of Ministers has temporarily introduced priority for the transportation and export of domestic vegetable oils by rail, sea and river ports, and the state border. The experimental mechanism has been introduced for the period of martial law, but not more than two years.

 

The priority applies to sunflower, safflower and cottonseed oil (UKT FEA code 1512), soybean oil (1507), rapeseed and mustard oil (1514), both crude and refined, produced in Ukraine.

 

From now on, Ukrzaliznytsia should give priority to transporting oil by regular trains to ports, border crossings, and stations, where it will be reloaded onto other modes of transport for further export.

 

Sea and river ports must first provide berths for vessels arriving to load bulk oil for export. Vessels transporting oil will also have priority when passing through the Sulin Canal.

 

At the state border, transport with oil should be subject to control as a priority, and if possible, a separate lane, track, or corridor may be allocated for it.

 

The government also set a priority for the import of fuel into Ukraine, in particular motor gasoline, diesel fuel, and liquefied gas.

 

The need to introduce a priority for oil is due to significant accumulated volumes at processing plants due to limited exports, which may lead to plant shutdowns and reduced purchases of oilseeds.