Ukrzaliznytsia to increase tariffs for iron ore and coal transportation

The carrier confirms its intention to unify cargo tariffs at a level slightly below the 2nd class

Ukrzaliznytsia (UZ) declared the unchanged cargo tariffs in 2023, but at the same time confirmed the intention of their unification for all classes of cargo. Thus, the load for carriers of iron ore and coal will increase, and for grain – will decrease. This was announced by the chairman of the UZ’s board, Oleksandr Kamyshin, informs Interfax-Ukraine.

“We presented a model in which we level tariff classes at a level slightly lower than the second class. There will be a redistribution within classes: carriers of iron ore and coal will pay a little more, and shippers of grain and other cargoes will pay a little less,” he noted.

The expected redistribution will not have a significant financial effect, but it will make it possible to return to the railway transportation of those cargoes that left.

According to Oleksandr Kamyshin, during the indexation of cargo tariffs, which took place since 1997, the most expensive cargoes, which gave the most profit, left the railway.

“Now, when we are leveling the classes, we are returning to the railway the same cargoes that are most profitable for us, such as diesel fuel, grain, and in this respect the effect is zero for us. We don’t get additional revenue, but we make the system fairer. The initiative is at the level of approval by ministries and public discussions,” the head of the UZ emphasized.

As GMK Center reported earlier, in 2022, Ukrzaliznytsia reduced transportation of cargo by 52.1% compared to 2021 – to 150.6 million tons. Transportation of iron ore for the year fell by 59.2% y/y – to 31.7 million tons, and ferrous metals – by 57.8% y/y, to 9.2 million tons.

Also, at the beginning of 2023, Ukrzaliznytsia (UZ) plans to increase prices for services provided by stations and branches at free tariffs by 38.3%. These are services provided by the company’s stations and branches – in particular, loading, unloading, weighing, shunting, etc.