Ukraine faces significant challenges and investment needs in its agricultural logistics sector. A 2015 World Bank study found insufficient capacity to handle future harvests and high present-day costs. Billions of dollars are needed to improve river logistics, railways, and storage facilities. Transportation of wheat by river and port has particularly high costs due to issues like non-transparent port fees, lack of river infrastructure maintenance, and restrictive regulations. Recommendations include reviewing port charges, liberalizing river access, and ensuring fumigation and phytosanitary standards comply only with destination country requirements.

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Agricultural Logistics
in Ukraine
Problems and investment needs
Oleg Nivyevskiy
Eugeniu Osmochescu
Grain Forum & Maritime Days 2016

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Introduction
2015 Study World Bank Group on
Ukraine’s Grain Logistics
Main takeaways:
• Insufficient capacity to cope with
future harvests
• Present-day high costs
Investment needs:
• River logistics: US$ 580 million
• Railways: US$ 640 million
• Storages: US$ 1500 million

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Follow up with Port and River Grain Logistics
Present day high costs: Example – wheat, in US$/t

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WBG Investment Climate Project
1. Black Sea Ports of Odesa, Yuzhniy and Mykolaiv
2. Focus: procedural and administrative barriers for the
efficient export of grain commodities and agribusiness
imports via the country’s key sea and river ports
3. Outcome: Comprehensive report with recommendations
on all the stages of moving grain by road, rail and river
barge to ports and clearing it for exports/imports

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Selected Issues
1. Port Fees & Charges
Charges and fees applied by port authorities for the use
of port infrastructure and services seem repetitive, non-
transparent, and quite divergent from port to port =>
increases costs for port users and affects the
competitiveness of the firms along the supply chain and
the location.
Recommendation: An urgent review of the
justification for, levels of and use of port charges
is required.

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Selected Issues
2. River Navigation
Lack of investments in and maintenance of the Dnipro
and Southern Bug, and river infrastructure in general and
regulations (restrictions on and discriminatory rates for
foreign flag vessels, excessive inspections, pilotage =>
increases river transport costs and waste of gifted
endowment.
Recommendation: An urgent review of the
inspection agencies, liberalization of access;
review various charges on the river.

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Selected Issues
3. SPS & Fumigation
Fumigation:
- No oversight of the operations of fumigation companies
=> may lead to a degradation (lack of trust) of the
Ukrainian phytosanitary certificate
SPS:
- Lack of Modern Risk Management Techniques
- Need compliance only with destination country
requirements