Our company has already got accustomed to the rumors that always appear in the event of new subsidies or privileges. It is considered that NIBULON is interested in this. After the adoption of the draft law No.7010 (which provides for a 30 % refund on purchase of railcars to agricultural producers), the mass media immediately published the statements saying that this draft law would lead to a redistribution of funds allocated to compensate for the purchase of Ukrainian machinery in favour of two companies – KERNEL and NIBULON.
In order to avoid the appearance of various ideas and interpretations of our position on the above-mentioned issue, we inform you about our official position: NIBULON has never planned to buy railcars. The company believes that the problem is not in the number of railcars, but in their effective use. Moreover, NIBULON did not lobby for this legislative initiative. We ask you to we remove our company from the list of companies that are interested in such refund and not to manipulate our name. This is our clear position, which we have always adhered to. And we don’t have plans to change it in the future.
What we see today is another backstage decision making in favour of some companies.
In this issue, our company is fully on the side of commodity producers, who oppose the allocation of funds to certain trading companies and financial structures in the form of subsidies from the state during the construction of railcars.
Firstly, when subsidies are received by certain commercial entities, that are carriers of grain, it doesn’t mean a reduction in the cost of transportation for the market since such pricing is conditioned by existing market relations. Thus, companies that will receive subsidies for the construction of railcars, they will primarily receive additional revenues from the state.
Secondly, this approach may lead to monopoly of certain companies that will increase their control over rail transportation market. And business entities that haven’t had railcars will remain without them.
Therefore, we can assert that the problem is not in the number of railcars, but in the efficient use. In our opinion, this problem can be solved by introducing route transfers, increasing the turnover of railcars by investing in rail infrastructure, modernizing loading and unloading points, and organizing uninterrupted rolling stock processing. Only due to such measures it is possible to increase the volume of transportation by two times, without increasing the number of railcars.
All owners of companies who want to receive railcars without problems should make their use efficient. Railcars should be a mode of efficient delivery of goods.
Thus, one who uses railcars less effectively will pay more. One who uses cars more effectively should get certain discounts for organizing the efficient work of Ukrzaliznytsia.
On the other hand, the construction of a large number of railcars will not result in efficient transportation. In the absence of locomotives, there will be no opportunity to carry them.
In our opinion, there are many other, more effective, ways of using the funds allocated for such subsidies.
You can give them to machine builders so that they could expand the range of products, improve the quality, cheapen the railcars, which also should affect the prime cost of grain.  
You can give them to Ukrzaliznytsia so it could work on efficient use of rolling stock etc., which in turn will result in reduction of costs.
Give subsidies to agricultural producers, farmers! Give them to those who are engaged in livestock farming, production of meat and dairy products so that Ukrainians could consume high-quality products instead of imported animal skin that was processed to produce sausages.
Give these huge funds to repair roads, build schools, repair hospitals, build treatment facilities on the Dnipro River, so that we do not consume water after the sewage systems of cities, or dredge the Dnipro River (less than UAH 50 million is needed to dredge it). It will be useful for the entire market and all carriers. It will also allow Ukraine to ensure the implementation of international agreements on maintaining depths. And there are many other urgent issues related to every citizen of Ukraine and not just interests of certain financial institutions.
Our company has long been advocating for the efficient organization of the railroad work and demonstrates its effective cooperation with Ukrzaliznytsia. We have modern elevators capable of loading rolling stock. Railcar turnover is 3 days, while others use railcars 3-4 times less effectively (national average is 10-12 days). Work like NIBULON, and the railroad will also work efficiently.
This is a very big issue, and if someone needs more detailed economic justification for our position, we are ready to talk.
Everyone knows that our company develops Ukrainian grain logistics by investing considerable funds in navigation and shipbuilding revival. Last marketing year, we transported 2.5 million tons goods by inland waterways. This marketing year, we will transport 3 million tons, and the next year – 4 million tons. In close cooperation with the leading financial institutions of the world, we are doing everything to create modern effective logistics system in Ukraine taking into account the best world experience. And we don’t need any subsidies to implement our plans.