Ukraine’s Transport and Logistics System | Current and Prospective Opportunities and Challenges
2025
World Bank
Maintaining and improving the efficiency of Ukraine’s transport system for international trade is vital in supporting the competitiveness of the country in global markets, especially since most of Ukraine’s exports are low-profit-margin commodities that are sensitive to transport costs. While the sector’s resilience has been remarkable in adapting to the challenges experienced since February 2022, the existing infrastructure is being stressed by these new trade dynamics for which the system was not initially designed to serve in full. Congestion at land border crossing points, downscaled operations at the ports, and a lack of specialized equipment, to name three factors, have driven up transport costs and reduced operational efficiency. Besides such current challenges, in the medium term, Ukraine’s reconstruction and economic recovery will require transport services and infrastructure that support its growth and competitiveness in the region and internationally. Responding to this context, the objective of this Report is twofold: to present the major developments in Ukraine’s transport sector for international trade since February 2022, elucidating how alterations in trade structure and the changing availability of road, rail and port infrastructure have affected freight volumes, how freight is moved, and the costs of moving it; and more forward-looking, to identify high-level strategic actions that can not only make the transport sector more efficient in responding to current trading challenges but also enhance its operational capacity in the medium term, based on expected developments in freight transport.
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