Ukraine needs to increase the internal efficiency of new export routes – "NIBULON"




In conditions where Ukraine managed to build new, sufficiently stable export routes, it is important to focus on increasing the internal efficiency of the newly created system. This should primarily affect the cost of transportation, which will ultimately strengthen the competitiveness of Ukrainian manufacturers on foreign markets. This opinion was expressed by Mykhailo Rizak, the director of interaction with authorities at JV "NIBULON" LLC, during a round table organized by the Ministry of Restoration of Ukraine, the company's press service reports.

"The experience of "NIBULON", which had to reorient itself from water transportation to road and rail transportation due to the blocking of river navigation, shows that it is possible to increase efficiency even in extremely difficult conditions of war. So, in particular, thanks to the help of the USAID Project "Economic Support of Ukraine" in the form of 50 hopper wagons, we managed to significantly improve the economy of transportation during July-December 2023 by increasing the share of using our own wagons from 10% to 23%. The economic effect, which was redistributed to the purchase price for farmers, amounted to $1.7 million," he said.

At the same time, M. Rizak noted that the specified 50 wagons cover the transportation needs of only 1 of the company's 9 river terminals, which lost the ability to ship by water due to the war (another 5 are occupied or destroyed).

"In total, NIBULON needs 250 additional cars, which will allow scaling the effect on the entire network of elevator complexes. We ask to strengthen USAID's support and not be shy to help large companies, which are intermediaries in helping thousands of small and medium-sized enterprises," the specialist emphasized.

According to M.Rizak, it is the increase in the supply of wagons from Ukrzaliznytsia and their provision from donors in a systematic connection with the lowering of the cost of logistics on the Danube River that will contribute to the strengthening of the economic capacity of all participants in the export chain. In turn, in order to reduce the cost of logistics on the Danube river, political influence and the organization of measures aimed at creating conditions for the withdrawal of the fleet currently blocked in the port hub of Mykolaiv are of critical importance.