During the first 10 months of 2024, Ukrainian ports handled approximately 15.2 million tons of iron ore, reflecting a sevenfold increase compared to the same period in 2023. Steel product transshipment at ports during this period totaled 2.9 million tons, showcasing a 2.5-fold growth year-on-year.

Export Figures and Economic Impact

Iron ore exports surged to 27.9 million tons (+96% y/y), generating $2.3 billion in revenue, while semi-finished and rolled steel products brought in $2.7 billion (+18.2% y/y). This significant growth underscores the iron and steel industries' critical role in Ukrainian Railways' freight operations.

Key Export Trends by Rail

Export transportation by Ukrainian Railways saw the following increases:

• Iron and manganese ore: Nearly doubled, reaching 27.7 million tons.
• Ferrous metals: Increased by 17%, totaling 4.3 million tons.

The sharp rise in iron ore exports is attributed to the opening of a sea corridor in August 2023, which redirected ore cargoes to ports. From January to October 2024, 15.2 million tons of iron ore were transported to ports (seven times more than in 2023), while 12.5 million tons (-2.3% y/y) were sent to land border crossings.

Similarly, the export transportation of steel products shifted significantly. Port-bound ferrous metal shipments reached 2.9 million tons, marking a 2.5-fold increase year-on-year, while shipments to land border crossings fell by 44.3%, totaling 1.4 million tons.

Port and Rail Transportation Growth

The redirection of iron and steel cargoes to ports boosted overall port performance. In the first 10 months of 2024, Ukrainian ports handled 82.1 million tons of cargo (+78% y/y), of which 31.4 million tons consisted of non-agricultural goods, primarily iron and steel products.

Ferrous metals now account for 17% of container rail transportation. While metal container shipments fell by 8.6% in 2023 to 30.3 thousand TEU, total loaded container transportation in Ukraine grew by 34% to 201.3 thousand TEU. In 2024, container shipments increased further, reaching 219.3 thousand TEU (+41% y/y).

Challenges and Competitiveness

Despite the growth in cargo handling and transportation, the cost of export logistics for iron and steel companies has risen 3-5 times since the outbreak of the war. These higher costs have negatively impacted the production costs and global competitiveness of Ukrainian iron and steel products. Nonetheless, the sector remains one of Ukrainian Railways' largest clients, second only to the agricultural sector.