Moldova’s transit discounts could make the Port of Reni more competitive — expert

A 50% reduction in rail freight transit tariffs through Moldova could restore the competitiveness of this route and increase cargo flows through the Port of Reni.

Dmytro Kazanin, Director of the logistics company TEUS, stated this in a comment to Ukrainian Shipping Magazine.

According to the expert, the previously high cost of rail transit through Moldova significantly limited the use of this route. In many cases, road transport was more economical, so some shippers and traders did not consider rail a competitive option.

Following the tariff reduction, rail transport will be better positioned to compete with road haulage, particularly for large consignments of grain, oilseeds, flour, fertilisers and other bulk commodities.

Kazanin also noted that the new tariff conditions could alter the distribution of cargo flows between the ports of Izmail and Reni. Previously, a significant share of cargo was directed to Izmail due to cheaper inland logistics. Transporting rail wagons to Reni through Moldova was often more expensive than using alternative routes.

The reduction in transit tariffs could partially eliminate this imbalance and make Reni more attractive to Ukrainian shippers and trading companies.

Comment by the Institute of Danube Research

According to the Institute of Danube Research, the tariff discount creates favourable conditions for revitalising the Ukraine–Moldova–Port of Reni railway corridor. However, its practical impact will depend on more than transit costs alone. Other important factors include the capacity of border crossings, the speed of cargo clearance, the availability of locomotives and rail wagons, coordination between the Ukrainian and Moldovan railway authorities, and the capacity of Reni’s port infrastructure.

Improving the port’s competitiveness could facilitate a more balanced distribution of cargo between Ukraine’s Danube ports, reduce pressure on the road network and contribute to more resilient logistics routes. This is particularly important for large consignments of agricultural products, for which rail transport can be more efficient and environmentally sustainable than road haulage.

At the same time, the tariff decision should be viewed as part of a broader transport policy. Achieving a long-term effect will require the modernisation of railway approaches to Reni, the development of transshipment capacity, the digitalisation of transit procedures and the coordination of infrastructure decisions between Ukraine, Moldova and Romania.

Under these conditions, the Port of Reni could strengthen its role as an important multimodal hub in the Lower Danube region and within Ukraine’s export logistics system.