Market Report, "Ukraine Freight Transport Report 2014", published

From: Fast Market Research, Inc.
Published: Fri Feb 07 2014

* The Ukrainian military allegedly sent armoured vehicles to Kiev to stabilise the current situation, where hundreds of thousands of people are protesting the government's decision to walk away from the EU's Association Agreement.
* Poland's defence ministry has been considering purchasing anti-tank missiles from Ukraine as part of the implementation of a weapons modernisation program. A mission headed by Poland's Deputy Defence Ministry for Weapons and Arms modernisation Waldemar Skrzypczak met with state representatives Ukroboronprom State Concern and Ukrspecexport State Enterprise, to discuss bilateral military and technical cooperation in November 2013.
* Reports that Russia has stationed missiles in its Baltic Sea exclave of Kaliningrad have raised tensions in the region, although Russia's Defence Ministry spokesman insisted they have not violated international treaties.

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will push grain exports higher, in spite of disappointing wheat output. This will limit the ongoing decline in the tonnage volume out of the country's main ports. Over the long term, we expect throughput and the value of the country's agricultural exports to improve significantly.

Viking Rail Project Adds Turkey to the Mix- Europe's Viking railway project, originally running from Lithuania to Ukraine, will now add Turkey as a destination. We believe the Viking rail project will benefit all the countries it runs from and passes through. We see Lithuania, Ukraine and Turkey's ports as particularly benefiting from the rail connection.

Rail Freight Traffic between Ukraine and the EU Increases- The volume of rail freight traffic between Ukraine and the EU climbed 4% year-on-year (y-o-y) to 39.4mn tonnes in January-October.

Swiss WorldCargo and Emirates Introduce Direct Services to Kiev- Swiss WorldCargo, the airfreight division of Swiss International Air Lines, introduced a new non-stop flight between Zurich and Ukraine's capital Kiev at the end of October 2013. Earlier in the year, in July, Emirates announced its expansion plans for Eastern Europe, with the launch of daily services to Kiev from January.

Global Ports Might Enter Illichivsk- Global Ports might acquire a 50% stake in the Illichivsk Container Terminal. As a result of Global Ports' acquisition of Russia's second largest port operator National Container Company (NCC), the consolidated company has the option to acquire within three years a 50% stake in the container terminal at the port of Illichivsk. This would also mean APM Terminals' entry into Illichivsk, as the global terminal operator holds a stake in Global Ports.

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