Grain transport from Ukraine faces many logistical challenges that affect the efficiency and cost of moving this raw material. In the case of rail transport, these are primarily problems with the availability of wagons and delays in deliveries. On the other hand, transshipment of goods at rail border #crossingsbetweenUkraine and #Poland faces several key challenges:
Differences in track gauge: Ukraine uses broad-gauge railway lines (1520 mm), while Poland uses standard European tracks (1435 mm). This requires transshipment of goods at the border, which is time-consuming and expensive.
Infrastructure shortage: There are not enough transshipment terminals and the right equipment, such as cranes to move containers between trains. This causes congestion and delays in transport.
Increased demand: The situation in Ukraine has led to an increase in demand for rail transport, which is putting additional strain on existing infrastructure. The increase in the number of goods transported, such as grain and fuel, requires better coordination and increased capacity at border crossings.
Insurance Issues: Due to the ongoing conflict, insurers are reluctant to offer insurance for Polish trucks and rail vehicles to enter Ukraine.
Terminal Congestion: High levels of occupancy at sea terminals and congestion at transshipment terminals at the border are bottlenecks in the transport of goods.
These challenges require cooperation between Poland and Ukraine and investment in infrastructure to #improvelogisticsprocesses and ensure the smooth transport of goods.
As an international carrier, UMS is faced with these challenges in its daily work and makes every effort to eliminate them from our cooperation with customers. We solve these problems thanks to many years of experience and close, proven partnerships with our contractors and our common competences. We believe that our customers should not feel the effects of difficult circumstances. One example of such undertakings is our cooperation and solving the problems of the Volyn-Zerno-Produkt enterprise in grain transfer from Ukraine by rail.
Volyn-Zernoprodukt "Volyn-Zerno-Produkt" is a leading enterprise in Ukraine, ranked among the hundred largest grain suppliers in Ukraine. The company is also a trader organizing grain transportation between Ukraine and ports in Poland (Gdańsk) using Polish and European infrastructure for grain delivery.
Establishing international relations at the initial stages of its activity, the company faced a sharp and unexpected increase in operating costs during transportation.
In particular, transport to the port of Gdansk (Poland) from Ukraine and back involved a significant portion of costs related to delayed loading, transport downtime and additional payments caused by inconsistency in contractors’ actions.
Logistics professionals are well aware that each additional day in transit increases operating costs and significantly increases risks: from additional costs for daily wagon and container rentals to the risk of missing a vessel’s departure. This led to disruptions in the supply chain, unpredictable costs and customer dissatisfaction.
The challenges for UMS were:
- Reduction of operating costs
- Coordination of transport logistics
- Reduction of additional wagon downtime costs
- On-time delivery and loading at the port of Gdansk
- Establishment of an uninterrupted supply chain
- Optimization of the cross-border crossing process
UMS Solutions
Known for its expertise in rail train dispatch and cross-border logistics, UMS took on these challenges. Established mechanisms at border crossings, established mechanisms for coordinating train dispatching on Polish infrastructure, as well as non-standard optimization solutions helped to completely solve the client’s problem.
UMS took the following steps:
1. Human capital expertise: With over 50 years of combined experience in rail dispatching, the UMS team provided unparalleled knowledge in rail logistics optimization. Their industry contacts also played a significant role in mitigating operational challenges.
2. Internal operating system: UMS developed its own system that integrates dispatching protocols of both Ukrainian and Polish railways. UMS’ experience and constant reliable communication ensured fast and efficient train movement.
3. Optimization: UMS managed to increase the net train weight to 24 t, which is 10% more than its competitors. This reduced the additional costs of loading and unloading grain cargo.
On-time deliveries and reduced costs for customers, 50% improvement in operational efficiency compared to average traffic parameters. Optimized border crossing processes and optimized shipping, reduced transit times, reduced costs and increased customer trust and satisfaction.
Results
The direct result of UMS’ intervention was improved operational efficiency. Improved border crossing processes and optimized train dispatching led to shorter transit times, significantly reducing costs and increasing customer satisfaction. These operational improvements proved so effective that the company’s next steps were to expand operations to additional trains, further reinforcing the positive results of UMS’s dispatching services.
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Long-term benefits
The cooperation between VZP and UMS has brought long-term benefits and has served to improve the efficiency and effectiveness of border crossings. This has resulted in:
• Reduced operating costs: Fewer delays reduce the daily costs of renting wagons and containers.
• Increased customer satisfaction: Fewer disruptions in the supply chain mean customers benefit from more reliable and cost-effective services.
• Increased capacity: The expansion of the fleet has allowed for scaling operations and increased profitability.
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