Until the implementation of the Black Sea grain initiative in early August, Ukraine’s only operational ports were Izmail, Reni, and Kiliia (Danube ports). However, after the announcement of a deal between Ukraine and Russia brokered by Türkiye and the UN, the port of Odessa is now operational.
Following Russia’s invasion, Ukraine’s small river ports increased activity to keep trade flowing in and out of the country. A month after the opening of three designated grain export hubs, the ports are still operating at full capacity.
According to Ukraine’s Minister of Infrastructure Oleksandr Kubrakov, the Danube ports have transported over 4 million tonnes of grain since March. This is currently more than is provided by all other modes of transportation combined.
The Ukrainian Ministry of Infrastructure is working to enhance rail connections between Danube ports to better facilitate export logistics.
“If systemic investments are made and the programme for modernising the Danube ports is carried out, they could handle up to 25 million tonnes of cargo per year,” said Mr. Kubrakov.
The European Bank for Reconstruction and Development and the Ministry of Infrastructure have started a project to improve export logistics in the Bessarabia region, which is in the southwestern corner of Ukraine.
As preliminary data shows, the Black Sea grain initiative has not slowed traffic out of Ukraine’s Danube ports, which saw more than 300 departures in August.
The Joint Coordination Centre in Istanbul, which monitors vessels using the grain corridor from the ports of Odessa, Chornomorsk, and Yuzhnyi, reported on September 4 that more than 2 million metric tonnes had been exported through Ukraine’s export hubs.
Safe passageways were established for Ukrainian exports from three seaports as part of the initiative signed by Ukraine and Russia in Istanbul at the end of July.
Recognizing that the agreement was only signed for an initial 120 days through October, Ukrainian officials now wish to triple monthly volumes.
According to the ministry, the Odessa port exported 419,000 tonnes of agricultural products in August, Chornomorsk exported 848,000 tonnes, and Pivdenny exported 459,000 tonnes.
Ukrainian agricultural products were primarily exported to Asia (726,000 tonnes), Europe (640,000 tonnes), and Africa (365,000 tonnes). In addition, as part of the UN food programme, 60,800 tonnes were sent to Ethiopia and Yemen.
According to Lloyd’s List Intelligence data, the ports of Izmail, Reni, and Kiliia recorded 439 outbound sailings to foreign ports in the second quarter of this year.
This is more than seven times the 58 sailings seen during the same period in 2021.
Türkiye is the most popular destination for ships departing from Danube ports. Between March and July, the country accounted for 40% of all foreign departures from Ukraine’s river ports.
Ukraine’s grain silos still hold millions of metric tonnes of food stored from previous harvests. Despite the Black Sea Grain Initiative’s efforts to clear some storage space, a lot more grain needs to be moved to make room for the new harvest.
The export of fertiliser, including ammonia, under this initiative is also crucial and time-sensitive, as it will allow farmers around the world to maintain food production at reasonable costs into the next year.
