“Ukrzaliznytsia does not expect a 20% increase in freight transportation tariffs from January 1, but they may be indexed due to the rise in price of some components of the railroad’s operations. This was announced by Valeriy Tkachev, deputy director of UZ’s commercial work department, at a meeting with exporters on November 23, Interfax-Ukraine reports.
Key facts
UZ’s financial plan for 2024 does not provide for an increase in the cost of freight transportation, Tkachev said.
At the same time, he does not rule out that the Cabinet of Ministers may decide to index them, in particular, due to rising fuel prices. “This is still in question. I have no information about the increase,” Tkachev emphasized.
He also said that UZ had asked the government to unify the tariff system to some extent so that grain traders could pay a little less for rail freight. Such work on tariff unification is ongoing, Tkachev said.
Context.
The last time Ukrzaliznytsia raised tariffs was in June 2022, by 70%. The company expected to receive UAH 11.3 billion from the increase by the end of the year, with almost half of the amount to be paid by the metallurgical business and farmers.
UZ expects to adjust cargo transportation tariffs for business in 2024 in line with inflation, CEO Yevhen Lyashchenko said in an interview with Forbes. The likely amount of indexation of UZ freight tariffs will be discussed closer to the time when the company’s financial plan for 2024 is ready, the CEO said.
On November 20, the government approved Ukrzaliznytsia’s financial plan for 2024 with a total revenue of UAH 103.2 billion.
On the same day, the Ukrainian Grain Association (UGA) expressed concern about the upcoming 20% increase in tariffs for freight rail transportation and the use of freight cars in 2024 and called on the government and UZ to seek mutually acceptable solutions with the agricultural sector.