Unexpected issue or careless behaviour of Ukrainian authorities ?

Queues at the borderlines and delays with deliveries. Delays and high penalties for Ukranian transport companies and increasing transport rates for clients. Growing of corruption and lack of decisions by the authorities. That are only a few problems that Ukrainian transport companies and logistics business facing at this moment.

Why?”- is a common question at this moment concerning situation we hearing from different sides:

  • why transportation rates increased so sharply?
  • why at the borderlines not possible to get licenses?
  • why the Ukrainian government was aware of the issue from the end of 2018. But they did not take any steps to find the solution?
  • why transport companies and other businesses have to be hostages to government irresponsibility?

At the end of the 2018 Ukrainian Ministry of Infrastructure and transport together with the transport authorities could not agree with the Polish authorities about a certain quantity of Polish – Ukrainian transport licenses for international transportation. The reason why it happens is decreasing of transportation rates due to low rates offering by Ukranian trackers for the same transportroutes. The reaction of the Polish authorities is quite understandable. Defending of their own trackers!

The question is what the Ukrainian authorities are going to do to solve this problem. Are they going to do something or just stay ignorant to this situation? A few weeks ago they just stopped giving the permits at the border lines! Because they noticed that all permits will be used till September 2019 and from that period there would not be any permits to give.

Growing of corruption.

ccording to the information of logistics media sources and interviews with the drivers they have to pay the extra money (of course without a receipt) to get any further in the line to get permits.

According to preliminary information of The State Bureau of Investigation of Ukraine, officials of the Ukrtrans Security Department in the Lviv region had set up a corruption scheme for the distribution of permits for international transportation. Using the scheme, they are:  

  • assisted economic entities in avoiding legal liability for violation of the requirements of the Transport Law of Ukraine.
  • decided to penalised companies with penalties that are not related to violators.
  •  By their actions, officials created an artificial shortage of permits

Today recalls that, due to Poland’s categorical refusal to increase the number of permits for international road freight transport, on July 19, 2019, a meeting of the Commission was held to consider issues related to the design, issuance, accounting and analysis of the effectiveness of the use of travel permits in foreign territories States, during which additional temporary restrictions were adopted due to insufficient balance of permits. It was decided that to ensure transit to countries whose quotas are sufficient, a minimum of 27 thousand transit permits of the Republic of Poland are needed. So, 13.4 thousand universal permits were transferred to the remainder of 13.6 thousand transit permits, they will be valid only for transit through the territory of the Republic of Poland to Germany and the Czech Republic. Transit permits will be issued only for vehicles traveling in transit through the territory of Poland in the directions of Germany and the Czech Republic, which meet the environmental parameters of Euro-4 and above and with a gross weight of over 10 tons. Permits for transit travel will be issued at 7 TACs: Boryspil, Vinnitsa, Goloby, Kovel, Korosten, Lviv and Khmelnitsky. The balance of universal permits that are valid for bilateral transport is 10,469 pieces by the end of the year. These permits will be issued at 160 permits per day for 3 TACs: Boryspil, Kovel and Lviv.