The Russia-Ukraine war has significantly disrupted Black Sea grain logistics, reshaping trade flows, sparking infrastructure investments, and altering market strategies. Louisa Gorban, CEO of Rail Hub Transylvania (RHT), provides valuable insights into how the region has adapted to these challenges. Through RHT’s strategic initiatives, she highlights key lessons learned and new opportunities for growth in the grain and logistics industries.

Louisa Gorban
CEO of RHT

The Russia-Ukraine war has underscored the critical importance of infrastructure investments and adaptive strategies. Amid these challenges, Rail Hub Transylvania (RHT) has emerged as a pivotal logistics player, bridging Western Europe and the Black Sea through Romania. In an exclusive interview with Miller Magazine, Louisa Gorban, CEO of RHT, shares a compelling account of the company’s strategic vision, its proactive responses to emerging challenges, and the broader lessons learned by the logistics and grain industries during this turbulent period.

RHT’s strategic mission is deeply intertwined with its geographic advantage and infrastructure investments. Initially established in 2019 as an internal logistics arm for Transylvania Invest S.A., RHT has evolved into a hub and intermodal operator. Located along the IV Pan-European Corridor, RHT leverages a strategic position to facilitate connectivity between Black Sea ports like Constanța and Western Europe.

The Russia-Ukraine war has disrupted traditional Black Sea trade routes, compelling players to seek alternative corridors for Ukrainian grain exports. Louisa notes that while investments in cross-border rail and transshipment facilities have supported Ukrainian flows, “Odesa and the ports in general remain the best solution for Ukraine in terms of volumes and export routes.” However, the conflict has reshaped trade dynamics, with Ukrainian grain reaching new markets via European railways and ports. “Today, due to changes in regulation made by processors in Europe to import Ukrainian grains, a consistent volume is still delivered through the big ports to Western European buyers,” Louisa explains.

The war has also highlighted the need for geopolitical coordination and infrastructural resilience. As Louisa explains, joint investments between Ukraine and European nations have focused on expanding inland transport capacity, ensuring access to critical gateways, and securing supply chain continuity.

She underscores that a fragmented agribusiness landscape hinders regional cooperation. To secure supply chains and enhance export competitiveness, she advocates for coordinated action plans involving governments, private enterprises, and industry associations. She suggests creating a unified market with integrated financial and risk management tools and envisions a revived Eastern European commodity exchange to foster sustainable agribusiness practices. Drawing from historical precedents, she proposes the establishment of an Eastern European commodity exchange to reflect and regulate the commercial realities of the region.

Here, Louisa Gorban shares her insights, shedding light on how the Russia-Ukraine conflict has transformed logistics and grain trade:

Ms. Gorban, could you elaborate on RHT’s strategic vision for connecting Western Europe with the Black Sea through Romania?

Rail Hub Transylvania began its development in 2019 as an in-house logistics company for our group’s grain trading business, Transylvania Invest S.A. Shortly after, it evolved into a hub and intermodal operator, largely due to significant investments in rail infrastructure.

The vision, the strategy and the goal are projected into a synergy able to consolidate and grow our position as an adaptable and multipurpose terminal, serving major flows of import and export from Turkey, Poland and Germany, via Romania, for different industries.

The rail infrastructure and location of our terminal allow us to benefit of maximum length (up to 700 m) and tonnage (2000 net weight/ train), in both directions, Western Europe and Constanta Port, a cost efficiency reflected in the transport price.

Intermodal transport is at the core of RHT’s services. What factors have driven RHT’s decision to focus on this model, and how does it benefit your clients?

Three main factors gave to RHT the possibility to develop into a hub and a tailor-made logistics supplier and I would summarise those as follows: First is the know-how in rail transport as over the years, most of the grain volume is delivered by rail to Constanta Port and all over Europe.

Second is the vision of adding value to existing businesses and to constant investments by developing the intermodal terminal, in the same place where the grain storage facilities are located, with a surface of 13 hectares with direct access in the IV Pan European Corridor, one of the key rail transport routes running between Dresden/Nuremberg in Germany and Thessaloniki (Greece) / Constanța (Romania) / Istanbul (Turkey).

Third is understanding the need of the market for cost-efficient and sustainable transport during a volatile economy, where we believe that by combining different industries through customised logistics and concentrated hubs, durability can be achieved.

How has the war shifted grain trade flows across Europe? As the Black Sea trade routes face disruptions, what alternative maritime or overland routes have emerged to support Ukrainian grain exports?

During 2022 and 2023, constant investments were made in rail and transshipping facilities across various border locations to support Ukrainian flows. As a result, the exported volumes reached the same traditional markets where European players sell their commodities. However, Odesa and its ports remain the most effective solution for Ukraine in terms of export volumes and routes. I believe that today, due to changes in regulation made by processors in Europe to be able to import Ukrainian grains, a consistent volume is still delivered through the big ports to Western European buyers. 

What economic effects have new grain export corridors had on Eastern European and Balkan communities?

From my perspective, the most significant impact was the price increase across the entire chain—starting with the commodity prices offered to producers, followed by the logistics costs that directly affected the trading market, and ultimately reaching the end consumer, who paid higher prices.

What long-term strategies are countries in Eastern Europe region adopting to strengthen their grain supply chains?

Although I would be glad to see more business concentration and cooperation among companies at the regional level, I admit that the market is too divided on the entire agribusiness industry. It is needed to have or to create an environment where all sectors; private, associations/ organizations and politics are involved in an action plan for a synergy able to secure a circular and safe economy.

Has the conflict encouraged new or deeper partnerships between Ukraine and other regional players in Eastern Europe? Are there joint investments in infrastructure aimed at making grain transport more resilient?  

For sure, there have been new partnerships between Ukraine and Europe since the conflict started, and constant investments are sustained by the European Union and other main governments, especially from a geopolitical perspective. Existing inland transport capacity and further developments are on the agenda when we talk about Ukraine, and besides the export of commodities, there is also a real interest for accessibility and connection with the main gateways to-from Ukraine.

STRENGTHENING GRAIN TRANSPORT AGAINST FUTURE THREATS

What lessons have countries and companies learned from adapting logistics in times of crisis? Are there strategies that could help protect grain transport routes from future disruptions?

Well, when it comes to lessons, I believe the main one we all should learn is that security in all forms remains the main priority. The latest constructions and investments made in rail hubs and infrastructure, plus private investments, should be capable of sustaining flows in the case of other disruptions.

How do RHT’s infrastructure and strategic investments contribute to Romania’s goal of becoming a key player in European logistics and grain exports?

RHT has the natural advantage of the geographic location, right between Black Sea Ports and Western European Ports, with direct access to one of the main rail corridors, IV Pan European Corridor.

Through its rail infrastructure and strategic location, RHT successfully converges industries and logistics flows, including:

• import of grains and oils from Ukraine and further delivered to Western markets
• import of reefer cargo imported from Turkey, Poland or Germany and distribution to end customers
• export of grains to multiple destinations via conventional rail transport and by multimodal logistics combined with other industries, but using the same logistics setup
• export or import for businesses active in fertilizers, metal and recycling industries

Added value comes from the fact that the main road connections are also accessible from - to RHT Terminal.

What are RHT’s main priorities for growth in the next few years? Are there any new services or expansions that you foresee?

Developing new businesses, investing in more rail infrastructure and terminal equipment is the strategy for the current and medium term. At the beginning of 2025 a new rail connection will be launched from our terminal and new industries will join our portfolio, becoming beneficiaries of integrated logistics and services provided by Rail Hub Transylvania at the national and European level.

CREATING A COMMON MARKET IN EASTERN EUROPE

How can the Eastern European region create a common market in order to secure regional consumption (existing integrated chain, such as mills and crushing plants), yet gaining strength on the exported business?

A common market could be developed through the synergy of shared goals and interests. Therefore, the first step would be to align supply and demand in an organized manner, while incorporating financial and risk management tools to secure all parties. Indeed, a lobby to promote these values in business is needed, but long-term sustainability can be achieved only with commitment and involvement from all segments of the agribusiness industry. History teaches us that in the past, Romania, as a key player in the Black Sea commodities market, had an exchange in the region that reflected the commercial realities of the area. So, I strongly believe that an Eastern European Exchange should be the catalyst for a safe and sustainable practice in agribusiness.