USAID ERA delivered grain wagons to Cygnet  

AGRI-Ukraine Export Logistics Support
05 June 2024

USAID Economic Resilience Activity (USAID ERA) delivered 15 grain wagons to Cygnet, a group of agri-companies growing grain and oilseeds in Ukraine. Cygnet expects these 15 wagons will increase grain exports, optimize logistics costs and reduce transportation service provider dependence. These wagons were produced in Ukraine by the Ukrainian manufacturer Karpaty Plant.  

Cygnet uses wagons to transship grain via rail within Ukraine and it usually rents wagons from third-party providers. Renting wagons during the peak season subjects Cygnet to rates fluctuations and availability, leading to periodic disruptions in transshipping. The USAID-funded wagons, the first owned by Cygnet, will reduce Cygnet’s demand for rented wagons by 10%, provide consistent shipping capacity, and reduce disruptions. 

In 2022, after Russia’s full-scale invasion, Cygnet pivoted to alternative export routes. All alternative routes proved less efficient and more expensive, so when the Grain Corridor reopened, Cygnet returned to the traditional Black Sea port channels.

Background: Assistance to agricultural producers and infrastructure companies is part of the Agriculture Resilience Initiative (AGRI) – Ukraine, implemented by the United States Agency for International Development (USAID). It aims to help Ukraine increase its capacity to produce, store, transport, and export grain.