Katowice, Poland – October 09, 2024

According to Facebook post of director general of PJSC “Ukrainian Danube shipping company” (PJSC UDSC)

Danube shipping companies are joining forces to seek assistance from EU authorities in light of a significant crisis affecting their operations. Dmytro Moskalenko, director general of PJSC UDSC, made this announcement after the 66th conference of Danube shipping directors in Romania.

According to Dmytro Moskalenko “… the situation is worse than during the 2008 global financial crisis”.

The challenges extend beyond the return of Ukrainian grain exports to the ports of Odessa. The Danube industrial cluster is deteriorating, impacted by high energy costs, stricter environmental regulations, and low demand. Companies like ISD Dunaferr in Hungary have closed, while others like Liberty Galati in Romania and Voestalpine in Austria are struggling, he continues.

Additionally, the position of the Constanta port has weakened, with clients opting for rail transport to other EU ports. Currently, 95% of containers are transported by rail, and, indeed, Constanta plans to increase tariffs by 20% next year.

Investment projects are being halted, with Romanian companies postponing plans to build new barges, while Slovak investments in barge reconstruction are also on hold. Companies are cutting costs and staff, with PJSC UDSC reducing its workforce and hiring migrants to lower salary expenses.

Moskalenko stressed the need for EU support for Danube River logistics, highlighting its environmental benefits over road transport. He pointed out that the issue of the Danube is not being adequately addressed at the European level whereon some incentives are to be in place to promote river transport.

At the conference’s conclusion, participants agreed to unite and develop proposals for EU authorities.

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Primeore Trading (Polska) Sp. z o.o. is a trading arm of Primeore Ltd. which is responsible for handling of all international trading and trading-related operations of the group. The company is involved into operations with manganese ore, ferroalloys, coke and coal products worldwide.

PJSC “Ukrainian Danube shipping company” a Ukrainian shipping company that specialises in water transportation along the Danube and Black Sea. The company provides passengers and cargo transportation including: iron ore raw materials, coal and coke, grain cargoes, metals and various general cargoes, bulk and packaged fertilizers, third-grade petroleum products, machinery and equipment, containerized cargoes etc.

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