The Supervisory Board of JSC “Ukrzaliznytsia” proposed to increase the tariff for freight transportation by 37%. As reported on the company’s website, this decision has already been submitted to the Ministry of Community and Territorial Development of Ukraine for consideration.
Ukrzaliznytsia did not publish information about its own profits, but justified the need to increase tariffs by the rise in prices for electricity, diesel fuel, and spare parts for locomotives and electric locomotives. The company emphasizes that tariff indexation is critical for financing the repair of rolling stock and infrastructure.
According to the management of UZ, tariffs for cargo transportation have not changed for almost two years, and even the previous increase did not reach an economically justified level. The company also noted that the price index of manufacturers of industrial products increased by 76.4%.
However, freight transportation market participants remind that in 2022, UZ has already increased the tariff by 70%. If the current initiative is implemented, the cost of transportation will more than double, causing concern among businesses.
“I don’t see any reason to raise the issue of raising tariffs. Especially in a situation where the main industries that are clients of Ukrzaliznytsia are in a very difficult situation today.”, said Director of the Center for Transport Strategies Serhiy Vovk.
