Grain logistics in Ukraine: the main challenges and effective ways to reach sustainability
Grain logistics in Ukraine: the main challenges and effective ways to reach sustainability

Summary/Abstract: One of the most important sectors of the economy in Ukraine is agriculture. Ukraine today is one of the world’s leading grain producers and exporters. The growth of world food needs contributes to the integration of Ukrainian agricultural products into the EU economy. It is a key for the Ukrainian agricultural products to be a part of EU economy. However, this outcome may depend on the constraints on growth. The article summarizes the arguments and counterarguments in the scientific discussion of the identification of the main challenges and ways in the sustainable development of grain logistics in Ukraine, compares the situation in Ukraine, Poland, Romania and the Czech Republic.The main purpose of the study was to identify the peculiarities of logistics and search for alternative forms and methods of grain products delivery to the storage and sale sites (ports). The research was done on existing transport corridors and the cost per ton. The relevance of the problem lies in the fact that current growth trends in the volume of grain transportation and current situation of transport infrastructure require improvement of the logistic quality and the formation of new logistic routes. The article presents issues of the development of freight logistics in the following way: determination of the actual situation of freight logistics; identification of the main trends in recent years; determination of freight transportation advantages and efficiency level using various types of transport; formation of proposals and prospects of the development of grain products transportation considering the existing needs as well as prospects for growth of agricultural production in Ukraine. Methods used in the study included empirical research and scientific retrospective analysis.Ukrainian grain logistics was chosen as the object of research, as the trends in the agro-industrial complex and the growing volumes of grain exports through seaports require finding better ways to improve the efficiency of freight transportation on the basis of cost reduction as well as increase in transportation speed. The article presents the results of an empirical analysis of freight transportation of grain products. The analysis showed that railroad is the main mode of grain transport. The state of the railway system of Ukraine was featured as the most serious problem reported and a limitation on market participants in the results of our survey. 80% of the respondents consider high railway tariffs a problem; 70% consider the poor quality of the railway network and infrastructure to be a problem; and 60% noted the lack of freight cars.At the same time, road transport is used for transportation over relatively short distances. However, it has limitations due to the low road capacity. In addition, water transport can be an important reserve for increasing the volume of transportation. Nevertheless, it will be possible only in case of investment growth and infrastructure restoration. The study empirically confirms and theoretically proves that improvement and optimization of Ukraine’s transport infrastructure is a prerequisite for ensuring the growth of agricultural exports and overall economic growth. The results of the study can be useful for grain products exporters and authorities.

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