Ukraine’s Vilia stops using Polish grain terminal in Gdansk

Volyn-Zerno-Product (Vilia) has stopped using the terminal at the Polish port of Gdansk, which the company had leased for three years, company founder Yevhen Dudka told Latifundist.com.

“We thank them for good cooperation, which helped us resolve many issues. We have left them with the investment package and suspended our cooperation. If the need arises in the future, we are open to new agreements and ready to work together again, including on grain supplies,” Dudka said.

The reason is simple — exporting grain from Ukraine via ports on the Baltic Sea is not cost-effective. Even from Volyn, it is currently more competitive to ship grain through the Black Sea, Dudka added.

“We work with transit through Poland on an occasional basis, but we do not have constant operations there. If deliveries to Germany or the Netherlands are involved, we are ready to offer a discount of $5–10/t from the port price. We are not prepared to lose more when supplying to the European market compared with Black Sea ports. However, we still contract certain volumes to maintain our market presence,” he said.

Vilia’s terminal in the Volyn region is now handling alternative cargo — scrap metal, mineral fertilizers, and diesel fuel. Grain volumes are lower, at two or three trains a week. Logistics through Poland will only truly become viable once Ukraine joins the EU, he noted.