Ukraine is experiencing an investment boom in delivery and logistics

Ukraine is experiencing an investment boom in delivery and logistics

Investments in delivery and logistics sector in Ukraine increased 18 times in the 3rd quarter 2020

The only area of ​​economic activity in Ukraine where it was a significant increase in capital investment in January-September 2020, compared to the same period in 2019, was delivery and logistics activities.

In all other sectors of the Ukrainian economy in 2020, there is a complete failure from investment. The total volume of investments decreased by 29.3% - from UAH 379.2 billion to UAH 268 billion. Ukrainian air transport suffered most of all in a year due to the Covid-19 pandemic. So, according to the results of three quarters of 2020, investments in the industry fell more than fourfold from UAH 1,432.2 to 327.5 million.

According to the latest data from the Statistics Committee of Ukraine, by the end of 3 quarters of 2020, the indicator of capital investment in delivery and logistics activities increased 7.9 times, amounting to UAH 353.7 million against 44.7 million in January-September 2019.

Among the significant deals in the delivery and logistics sector, the following trends and events among key market players can be noted:

  • The largest private postal operator in Ukraine, Nova Poshta, planned large investments in its development for 2020, namely, to master $ 100 million in terminals, IT and new products. Also in May 2020, Nova Poshta placed bonds of series B for UAH 700 million.
  • A breakthrough year in terms of attracting investments was 2020 for Ukrposhta. In October 2020, the EIB allocated € 30 million to Ukrposhta to modernize the logistics network. In addition, the EBRD has allocated 63 million euros for the company "Ukrposhta" to expand the logistics infrastructure, to build new sorting centers and reform rural post offices. It is also worth noting that the company has initiated the sale of its non-core assets, and is going to sell 800 real estate objects in the amount of UAH 82 million.
  • OKKO and Meest Express are actively opening mini-post offices at filling stations. The postal and logistics operator, with the likely introduction of strict quarantine in Ukraine in connection with the coronavirus, expects an increase in demand for the vast majority of its services. The company noted that during the spring quarantine, the number of parcels from foreign online stores increased by 40-45%.
  • The group of companies "Allo", which develops the trade network of the same name of appliances and consumer electronics, launches a new postal and logistics operator "Allo Express" in Ukraine. The company will provide services for the delivery and delivery of parcels online orders from the site allo.ua. The offices of the postal operator "Allo Express" will be located in the existing stores "Allo" in 140 cities of Ukraine. It is also planned to develop several formats of post offices, including outside the existing Allo stores. In 2021, all online orders placed on the website allo.ua can be received at the Allo Express branches, or by using the address courier delivery of this operator.
  • Fozzy Group launched Justin postal and logistics service. It is assumed that the network of Justin branches will open in most of the stores of the Fozzy Group retailer (namely in such networks as Fora, Silpo, Fozzi) and will provide services for receiving, issuing and sending goods, as well as a number of financial and related services.
  • DHL has agreed with Ukrzaliznytsia to jointly organize container trains and a powerful logistics center on the basis of the Liski branch of CFTS in Kiev to service DHL cargo in Kiev. DHL plans to continue to develop further the railway forwarding with the main focus on the transport corridor China - Ukraine - European countries and vice versa.
  • In 2020, for two years of presence in the Ukrainian market, the Glovo service expanded its geography of presence in 28 cities of Ukraine, the number of partners is 3500, and couriers connected to the platform who regularly deliver orders reaches 5000. In addition, in 2020, the Glovo delivery service in Ukraine went to break even. It is also worth noting that Glovo initiated the launch of a dark kitchen project (kitchens without restaurants) in Kiev, so in 2020 two Cook Room facilities were opened in Kiev.

Related posts