Roads, Rails, and Recovery: Ukraine’s Path to Rebuild Its Transport and Trade Links

The World Bank’s report, developed in collaboration with the transport modeling firm CitiEU and key Ukrainian stakeholders like the Ministry for Restoration and Ukrzaliznytsia (UZ), provides an in-depth assessment of how Ukraine’s logistics infrastructure has evolved since the 2022 invasion. The numbers are staggering: an estimated $36.7 billion in damages to the transport sector alone, with roads and railways accounting for the vast majority. Yet, despite these overwhelming challenges, Ukraine’s logistics system has shown extraordinary adaptability. A shift in routes, reliance on international partnerships, and creative use of maritime and land corridors have all played a part in keeping trade alive during wartime.

Black Sea Corridors: From Crisis to Comeback

Before 2022, Ukraine’s Black Sea ports were the beating heart of its export economy, handling nearly 70 percent of trade by volume. The war brought these seaborne lifelines to a standstill. But in a powerful act of self-reliance, Ukraine launched its own maritime corridor after the collapse of the UN- and Türkiye-brokered Black Sea Grain Initiative in mid-2023. The new corridor, skirting the coasts of Romania, Bulgaria, and Türkiye, allowed Ukraine to resume large-scale shipments, including non-agricultural goods that had been previously excluded under the older initiative. As of May 2024, the corridor facilitated over 120 million tonnes of cargo, 60 million tonnes of agricultural and 32 million tonnes of other exports, contributing an estimated $8 billion in additional revenue to the Ukrainian economy through increased trade volumes and significantly lower logistics costs.

Still, the Black Sea ports face governance challenges. Fragmented land ownership, poor coordination, and limited state control have constrained their efficiency. The report recommends transitioning to a “landlord port” model, where the state retains control over land and planning, while private operators handle day-to-day logistics. Strategic planning through a national port master plan is also urged to help prioritize investments, especially in containerization and hinterland connectivity. The urgency is clear: with industrial recovery expected post-war, these ports will be vital to reconnect Ukraine with global markets.

Danube Ports: Ukraine’s Maritime Safety Net

While Black Sea ports dominate headlines, the Danube ports of Reni, Izmail, and Ust-Dunaisk have emerged as critical secondary trade hubs. In 2023 alone, they handled a record 32 million tonnes of cargo, five times their 2019 levels. These ports provided essential fallback capacity during periods when deep-sea routes were closed or unreliable. Shipments via the Danube were crucial for exports to Southern Europe, North Africa, and the Middle East. However, these ports are not without limitations. They rely heavily on trucking due to poor rail access, particularly to Izmail, where a key bridge near Zatoka has faced repeated attacks. The need to route goods through Moldova’s poorly maintained railway system adds further complexity.

To secure the Danube ports as a long-term resilience asset, the report calls for investments in dredging, navigation systems, and access infrastructure. The World Bank’s RELINC project is already helping by providing handling equipment and vessels. Though smaller and more expensive to operate, the Danube ports serve as what the report calls the “life insurance” of Ukraine’s export system.

Land Borders: Bottlenecks and Breakthroughs

With the partial collapse of sea trade, Ukraine has leaned heavily on land corridors, primarily through Poland, Romania, and Slovakia. Supported by the EU’s Solidarity Lanes, overland trade volumes have doubled since pre-war times. But this has created severe congestion. Truck queues at border checkpoints can stretch for 40 kilometers, while rail cargo can sit for up to two weeks before clearing border formalities. The lack of coordination, outdated customs protocols, and absence of digital integration on both the Ukrainian and EU sides are primary culprits.

In December 2024, Ukraine approved a comprehensive border infrastructure strategy that includes expanding e-queue systems, implementing joint inspections with neighbors, and modernizing facilities. These improvements, if implemented effectively, could unlock significant efficiencies. Still, the World Bank stresses that soft reforms, like harmonizing procedures and digitizing documentation, may offer even higher returns than large-scale infrastructure projects in the near term.

Roads and Rails: A Race Against Deterioration

As trade patterns shift, Ukraine’s road and rail sectors are facing increased pressure. Roads now handle 54 percent of imports by weight and a remarkable 74 percent by value, particularly high-end goods. Yet 30 percent of the road network is in poor condition, and three-quarters of the truck fleet is more than a decade old. The report urges reactivation of the Road Fund and introduction of e-tolling and strict vehicle weight enforcement to raise funds and reduce damage.

Railways, meanwhile, have lost significant capacity due to damaged infrastructure, worn-out rolling stock, and inefficiencies at border crossings. UZ still operates under a centralized model, with little competition and low levels of containerization. A new Railway Law, anticipated by December 2025, aims to liberalize the cargo market, separate infrastructure and operational functions, and align Ukrainian rail with EU standards. Strategic corridors such as Kharkiv–Lviv and Kyiv–Odesa are highlighted for investment to meet future freight demand.

The World Bank’s report ultimately presents a compelling mix of urgency and opportunity. Ukraine’s transport and logistics systems, while battered, have not broken. But ensuring they thrive in the post-war recovery will require a careful blend of infrastructure renewal, regulatory reform, and strategic diplomacy. Whether through seaports, Danube resilience, or digitized border crossings, the choices made now will define Ukraine’s ability to reconnect with the world.