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  • Writer's pictureSergey Nenko

Efficiency of the logistics system in Ukraine in 2021

Updated: Feb 2, 2022

The efficiency of the logistics system largely determines the level of the country's economy, so this area deserves special attention. What trends are currently determining its dynamics? What challenges does it face? And what can be a great idea that will unite players around and determine the direction of further development of this area?

Virtually all areas of business have suffered from the pandemic, and global logistics has been an exception. Infrastructure is facing congestion, urban mobility has declined dramatically, as has the volume of sea and rail traffic and the number of commercial flights. Some of these segments are gradually recovering, and some are still far from their former state. But the worst thing is that the pandemic has increased the fragility of some supply chains.

The potential of the country is great: 4 of the 10 busiest transit corridors, both automobile and railway, pass through Ukrainian territory. But, according to 2018, Ukraine ranked only 66th in the world. According to statistics, we use our transit potential by 25-30%. And last year they also lost 25% of volumes compared to 2019: transit by rail decreased by 12-13%, the volume of sea freight transshipment decreased by 9%, and gas transportation decreased sharply.

Almost 25% of railway tracks need major repairs, the level of rolling stock wear is over 90%. Only 2% of the 5,631 bridges surveyed by Ukravtodor are in good condition, and 64% of bridges do not meet modern standards in terms of size and load capacity. Almost 90% of roads are worn out, so Ukraine is now 119th in the world in terms of road infrastructure quality.

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