The Role of Railways in Today’s Realities for Ukrainian Enterprises

Modern enterprises face numerous logistical challenges, especially amid growing competition, political instability, and dynamic market changes, reports MSK Transbud.

Logistic Challenges for Enterprises

According to research, up to 60% of companies in 2023 encountered supply chain issues due to disruptions in transport networks caused by both geopolitical and economic factors.

In Ukraine, this issue is particularly pressing, as the political situation and the blockade of Black Sea ports have reduced the capacity of maritime transportation by more than 40%. In such conditions, rail transport becomes the most reliable solution for ensuring stable product deliveries, especially toward the European Union.

Challenges of Maritime and Road Transport and the Advantages of Railways

While maritime and road transport remain important elements of international logistics, they are becoming increasingly risky for Ukraine. For instance, due to a 25% increase in fuel costs over the past year and the unstable situation on the roads, road transport costs have risen by 15-20%. At the same time, dependence on maritime transport has significantly decreased, as many ports have been blocked or damaged.

These risks compel enterprises to seek more stable alternatives. According to “Ukrzaliznytsia,” the volume of goods transported by rail in the first half of 2023 increased by 12% compared to the same period in 2022. Railways serve as the most reliable solution, ensuring the continuous movement of goods regardless of weather conditions or global crises.

The Importance of Rail Transport for Ukraine

Rail transport in Ukraine is a leading sector in the country’s transport complex, providing nearly 82% of freight and 36% of passenger transport carried out by all modes of transport. This makes rail transport an integral part of the national economy and logistics.

By freight volumes, Ukrainian railways rank fourth on the Eurasian continent, and the freight density of railways (annual freight volume per kilometer) is 3-5 times higher than that of developed European countries.

Advantages of Rail Transport

Rail transport has several advantages that make it the optimal choice for many enterprises:

• Transporting large quantities of cargo over long distances: Railways can carry significant volumes of goods over long distances, making them economically advantageous.
• High transport safety: Rail transport has a lower risk of accidents and damage to goods.
• Reducing road congestion: Using railways reduces the load on highways, which helps decrease traffic jams and improve the environmental situation.
• Environmental safety: Rail transport is more environmentally friendly compared to road transport due to lower CO2 emissions.
• Key role in multimodal transport: Railways are a crucial element in multimodal cargo transport, especially in war conditions and limited access to other transport modes.

Opportunities and Solutions for Enterprise Infrastructure

There are transshipment terminals on Ukraine’s border with the EU that play a critical role in ensuring the efficient export and import of goods. Such terminals have become key points in the logistics chain, further confirming that rail transport has become the best solution for ensuring deliveries.

For example, at the terminals in the city of Chop, through which most goods pass to the European Union, more than 5,000 tons of goods pass daily.

The Role of MSK Transbud in Building Railway Infrastructure

MSK Transbud is a leading company in Ukraine specializing in the design, construction, and maintenance of railway tracks. With its many years of experience and expertise, the company implements turnkey projects for enterprises. We help solve all stages of a partner’s project, from detailed design and supply of necessary equipment to construction and obtaining permits.

A key aspect of MSK Transbud’s work is the individual approach to each partner. Our team of specialists supports partners at all stages, addressing all needs and challenges in the field of railway construction.

The company carefully analyzes the needs of the enterprise, taking into account the specifics of its production processes, cargo volumes, and development prospects. This allows enterprises to avoid delays, reduce risks, and focus on developing their business, knowing that all logistics and infrastructure issues are in reliable hands.

Services of MSK Transbud in Railway Infrastructure Construction

MSK Transbud provides a full range of services in the field of railway infrastructure construction, including:

• Designing railway tracks: development of technical documentation, including geodetic surveys, environmental risk assessments, and engineering solutions.
• Construction and installation: carrying out all necessary construction works, laying rails, ballasting, installing switches, and other infrastructure.
• Modernizing existing tracks: repairing and updating railway tracks, including replacing worn-out elements, improving reliability and safety.
• Maintenance and technical support: regular maintenance of railway infrastructure, conducting technical inspections and repairs, and calibrating railway scales.
• Supplying materials and components for the upper track structure: rails, rail pads, insulators, clip bolts, shock-absorbing pads, railway fasteners, and other products.

Successful Projects and Development Prospects

MSK Transbud has successfully implemented a number of projects for the construction and modernization of railway infrastructure for enterprises in various industries. For example, a new railway branch was built for one of Ukraine’s leading mining and processing plants, which allowed the plant to significantly reduce transportation costs for raw materials and finished products. Thanks to the integration of new infrastructure with existing production processes, the plant was able to increase the efficiency of its logistics system and ensure timely delivery of products to partners.

Another successful project was the construction of a railway line for a large agricultural enterprise engaged in the export of grain crops. Thanks to the new infrastructure, the enterprise was able to significantly increase transportation volumes and reduce the time for transporting products to ports for export. Thanks to such projects, enterprises gain the ability to transport products more quickly and efficiently, which is critical in modern conditions.

Partnership with Global Investors: New Horizons for MSK Transbud Partners

Some of MSK Transbud’s partners, especially large enterprises, actively cooperate with international investment companies such as BlackRock. This partnership opens up additional opportunities for financing and developing infrastructure projects, including railway solutions.

Through such cooperation, our partners can significantly expand their capabilities in building effective and sustainable logistics infrastructure, allowing them to remain competitive in the global market.

Conclusion

Building your own railway branch allows you to significantly reduce transportation costs, increase the reliability and speed of product delivery, and provide more flexible management of production processes.

Railway solutions from MSK Transbud will help your business not only remain competitive but also ensure sustainable growth and development in the international market.