PJSC «Zaporizhstal», one of the largest taxpayers of Ukraine and of Zaporozhye region, successfully per-forms delivery of metal products to consumers through the Zaporozhye river port, decreasing terms of transportation and reducing logistic expenses.
As Vladimir Kolomiets, the Sales Director of “Zaporizhstal”, has informed, the Steel Works now saves from 2 to 4 dollars on one ton of cargo by shipping of metal products by river transport, in comparison with expenses for delivery by railway. In addition, the Steel Works saves extra because of delivering metal products to the river port not by railway but by the automobile transport.
– We save on it three times: if we transported with the traditional monopolist, that is railway transport, then transportation of one cargo ton would cost a little more than 2 dollars. For today automobile transport costs are three times cheaper and faster “, stated Vladimir Kolomiets. As he said, cost of product delivery from “Zaporizhstal” to the port of Odessa by railway transport makes up now around 15 dollars for one ton, whereas by the Dnieper river it is 15 % cheaper.
– Question of navigation remains to be an important factor for today. In 2015, navigation on the Dnieper River made 302 days. Taking in consideration, that this year navigation was opened in February, which is a record for Ukraine, the planned duration of it will make around 315 days, has marked the Sales Director of PJSC «Zaporizhstal».
At the same time, Vladimir Kolomiets considers illogical tying of levies for cabotage transportation in foreign currency: “they should be in hryvnyas; we should not be attached to foreign currency in Ukraine”. Sales Director of PJSC «Zaporizhstal» is convinced that Ukraine has unique transportation potential, the Dnieper River with the length of around 1000 km, which has 10 ports and which goes through 8 regions, where 60 % of gross national product of Ukraine is produced. However, the volume of transportation along the Dnieper River in 2015 has made about 5 million tons, or 0.5 % of all cargo traffic volume in the country. The most part of cargo traffic is realized by automobile transport – 74 %, and the remaining is realized by the railway transport, without considering pipelines and air transportation. Whereas in the EU countries, the cargo traffic by river transport is at average of 7 %, and in such countries as Germany – 12 %, Bulgaria – 16 % (along Danube River).
– If to consider Dnieper River, then the volume of cargo traffic can compose around 70 million tons, and this is a huge potential. River transportations are the ecological modes of transport, it is the most competitive mode of transportation as compared to railway, – Vladimir Kolomiets has underlined. Sales Director of the PJSC «Zaporizhstal» has subjected to criticism the government inattention to Dnieper River as transport corridor, against billions of investments into developing of automobile tracks and railway roads, as well as to supporting of seaports. In this connection, he hopes that situation would be changed after adoption of the law concerning inland water transport.
For today, the infrastructure created on the Dnieper River, is in operation for over 50 years. If they continue to ignore it, do not invest in it, it eventually will simply cease to exist – stated the Director, invoking the government to develop river transport, increasing competition and allowing to admit the ships under foreign flags.
As it was informed earlier by the Chief Executive Officer of PJSC “Zaporizhstal” Rostyslav Shurma, due to early beginning of navigation along the Dnieper River in the current year, the enterprise will reduce expenses for logis-tics and it will speed-up delivery of the metal products to the consumers.
At the same time, he noted that if, for example, the products of Chinese manufacturers were delivered to customers in the Black Sea region during 60-90 days, then metal of “Zaporizhstal” was delivered along the waterways only during 20 days. Thus, the Works reduces logistics costs, which increases the competitiveness of metal in the European markets.
– It turned to be possible due to that in 2015, we together with Director of Zaporozhye river port Alexandr Zyskind, were able to convince the Ministry of Infrastructure for announcing the inter-navigational season periods without linking them to a specific date, but depending on the weather conditions. As a result, this winter, navigation was closed not for four months, as usually, but only for one and a half, – said Rostyslav Shurma.
At the same time, he stressed upon the low level of the Dnieper transport potential engagement: – Why neither Ministries nor agencies are doing anything to move hundreds of millions of tons from Ukrainian roads to the Dnieper. It’s cheaper, cleaner, and could potentially create thousands of new work positions in the economy.
We would like to remind that PJSC “Zaporozhstal” resumed the strategic partnership with Zaporozhye river port in October 2012. The Steel Works shipped nearly 2 million tons of metal products to consumers from different countries of the world through Zaporozhye river port. In 2015, export cargo from Steel Works was sent by water transport to countries of Europe including Greece, Romania, Bulgaria and Turkey.
In 2016, Steel Works started delivery of metal products by water transport along Dnieper River since February 17. In 2016, Steel Works is planning to deliver about 700 thousand tons of metal products at the level of 2015 through Zaporozhye river port.