On January 25, 2012 a meeting between representatives of UGA, Ukrainian Union of Industrialists and Entrepreneurs, leading agricultural products export companies, including “NIBULON” and the General Director of “Ukrzaliznytsia”Volodymyr Kozak, was held. During the meeting they discussed issues that hamper grain transportations. The lack of rail cars is the most urgent issue. According to the General Director of “Ukrzaliznytsia”Volodymyr Kozak, currently out of 11.5 thousand Ukrainian rail cars only 15% are in motion, and 85% are expecting loading and unloading, in a delay. Volodymyr Kozak said that the efficiency of the railroad operation primarily depends on the effectiveness of cooperation with grain market players themselves. Timeless initiating requests for grain-bulkers leads to uneven loading on holidays and weekends, impossibility to plan any schedule, and as a result to inactivity of rail cars. Maladjustment of grain market and export inhibition are the consequences. The General Director of “NIBULON”, Oleksiy Vadaturskyy, proposed to introduce so-called “shuttle transportation” to resolve the situation. This is possible because the company has a vertically integrated structure, provided with its own elevator capacities and is able to plan transportation without the consent of a third party. Management of “Ukrzaliznytsia”immediately responded to the proposition of “NIBULON” as to the new speeded routes from the elevators of the company. On January 26, Ukrainian railway workers together with experts of “NIBULON” (Deputy General Director Andriy Vadaturskyy, the Head for transport logistics Oleksandr Grygorenko and specialists of the department) prepared a route schedule, which was approved by the management of “Ukrzaliznytsia” the next day. On January 30, 2012 “Ukrzaliznytsia” issued a decree № 290 as to experimental grain transportation by exit routes in February 2012, 54 rail cars in each of five “NIBULON’s” elevators to the destination point of the company’s transshipment terminal in Mykolayiv in order to accumulate grain, release elevators capacity. In February, effective reception and shipment of rail cars by “NIBULON’s” branches was not stopped, was not slowed down even at the weekends! This is despite the difficult weather conditions (heavy frost and low temperature). As a result of the experimental grain transportation in February 2012, “NIBULON’s” branches shipped 12 routes of corn that is 649 rail cars: – “Artemivs’ka” branch (Southern railway) – 3 routes (February 3, February 11, February 23); – “Globyns`ka” branch (Southern railway) – 1 route (February 1); – “Romodan” branch (Southern railway) – 3 routes (February 2, February 6, February 16); – “Kremenchuts’ka” branch (Southern railway) – 1 route (February 4); – “Maryanivs’ka” branch (South Western railway) – 4 routes (February 5, February 12, February 19, February 26). Branches of the company coped with the planned route shipment during 24 hours each! By the way, according to the existing formal arrangements with “Ukrzaliznytsia”, in March the company will be provided with rail cars for 15 routes! Work of “NIBULON” proved that the time reduction of rail cars turnaround, prevention of downtime, effective round-the-clock work is possible. This means that there is no deficit of rail cars in Ukraine. It is only necessary to use them effectively. *** January 31, 2012 Oleksiy Vadaturskyy thanked the management of “Ukrzaliznytsia”  for a constructive solution to the problem of grain transfer by rail cars in Ukraine at a meeting with the General Director of “Ukrzaliznytsia” Volodymyr Kozak, which was also attended by the First Deputy General Director of “Ukrzaliznytsia” Sergiy Bolobolin, the Deputy Head of the transport general office of “Ukrzaliznytsia” Petro Lymarchuk and Ukrainian Union of Industrialists and Entrepreneurs president Anatoliy Kinakh. February 10, 2012 “Memorandum in support of Ukrainian grain sector” was signed between the State Administration of Railway Transport of Ukraine and Ukrainian Union of Industrialists and Entrepreneurs, Ukrainian Grain Association, Ukrainian Agrarian Confederation and other public organizations of industrial and agricultural business establishments. The purposes of the agreements are the following: – creating conditions for a stable and predictable development of Ukrainian grain sector; – effective interaction of the State Administration of Railway Transport of Ukraine and business while exporting and grain transportation; – adhering to the principle of free competition in the grain and products after processing market; –  increasing competitiveness and efficiency of Ukrainian grain sector. Unlike other such memorandums that are sometimes a profanity, this memorandum is of organizational, consolidating nature and it is in action! The memorandum is to unite and coordinate efforts in securing the effectiveness of transportations, developing public-private partnerships and working out its mechanisms, as well as active involvement in the construction and repair of Ukrainian producers’ rolling stock. February 28, 2012 a selector meeting of Deputies General Director, heads of central boards and departments of “Ukrzaliznytsia” was held. There findings for February were finalized. P. Naumenko, Deputy General Director, set an example of “NIBULON” as the company that by its operations managed to reduce turnover of rail cars three times, from 8-10 days (average in Ukraine) to 3! This is an apparent saving of rolling stock turnover, which “NIBULON” can provide, without hindering the interests of other market participants. Therefore, coordinated work of “NIBULON” and “Ukrzaliznytsia” is an evidence of planned, transparent, responsible and constructive partnerships between public and private enterprises. Constructive cooperation gives reason to hope that the problems with grain transportations by grain market entities will finally be resolved. Our company is grateful to the State Administration of Railway Transport of Ukraine for operational solving of the issues, for effective partnerships and support. In turn, “NIBULON” will continue to develop its own logistics system in order not to depend on “Ukrzaliznytsia”. We build transshipment terminals at the Dnipro and the Southern Bug Rivers, build our own non-self-propelled and towing fleet. The company plans to bring the volume of grain transportations by Ukrainian rivers up to 3 million tons per year. This is another proof that we should not wait until the state or its institutions will deal with logistics developing. It is necessary to enter the market together with the state, strive for favorable working conditions for yourself.