Shifting into Higher Gear : Recommendations for Improved Grain Logistics in Ukraine
This study was conceived on the basis of a request by Ukraine’s Ministry of Agricultural Policies and Food (MoAPF). In 2013, the MoAPF explored the World Bank’s interest for investing in grain hoppers, following a deficit of hoppers and concerns ab...
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Language: | English en_US |
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World Bank, Washington, DC
2015
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Online Access: | http://documents.worldbank.org/curated/en/2015/09/25016728/shifting-higher-gear-recommendations-improved-grain-logistics-ukraine http://hdl.handle.net/10986/22752 |
Summary: | This study was conceived on the basis of
a request by Ukraine’s Ministry of Agricultural Policies and
Food (MoAPF). In 2013, the MoAPF explored the World Bank’s
interest for investing in grain hoppers, following a deficit
of hoppers and concerns about related difficulties for grain
transport. In response, the World Bank secured resources
from the Multi Donor Trust Fund for Trade and Development
(TF016693) to carry out a review of grain logistics in
Ukraine in order to better understand the challenges facing
the sector. The objectives of this report are to assess the
functioning of the grain logistics system, identify
bottlenecks and put forward practical recommendations for
investments and reform. Research points to five key drivers
of current high logistics costs: (i) lack of regulatory
clarity and sub-optimal management of public assets that
create barriers to private investments; (ii)
underutilization of river transport, (iii) underinvestment
in rail transport; (iv) inefficiencies in storage
management, and (v) excessive use of road transport.
However, there are two important limitations of the report
that should be taken into account. First, the ongoing crisis
remains a source of uncertainty. It has so far had limited
impact on grain production and logistics, yet access to
finance has become more difficult and other impacts might
arise in the future. Second, there are two areas that the
report does not address: customs and ports. Both are
important elements of logistics costs and deserve a
comprehensive analysis in the future. |
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