Transshipment of Ukrainian grain thru Hungary jumps

Ukraine Crisis

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The transshipment volume of Ukrainian grain through Hungary jumped in April as traders sought alternatives to Black Sea delivery routes, Rail Cargo Logistics-Hungaria said last week, according to piacesprofit.hu. 

The rail logistics firm managed the transshipment of 41,000 tonnes of grain from Ukraine in the first quarter and expects to handle a further 85,000 tonnes by the end of June. 

That volume could climb further, but is restrained by local trans-loading capacity and the number of available hopper cars. Rail Cargo Hungaria has 700 of its own hopper cars, and its parent company, Rail Cargo Group, has a further 1,500, enough to transport around one million tonnes of grain a year, covering the exports of local farmers. 

The company said that demand for transshipment volume from Ukraine could reach an annual five million tonnes, but the trans-loading capacity is only 1,000 tonnes a day. 

Rail Cargo Hungaria is working with its parent company to meet the increased demand, but that will require business partners to use cars suitable for grain transport but not custom-made for the purpose, it added.

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