Increase in freight tariffs of “Ukrzaliznytsia”: Current information

Updated freight tariffs of “Ukrzaliznytsia”

The Board of Directors of “Ukrzaliznytsia” approved new proposals for adjusting freight tariffs. These changes will be submitted for consideration by the Tariff Council under the auspices of the Ministry of Development of Communities and Territories of Ukraine.

Reasons for adjusting freight tariffs

According to the Resolution of the Cabinet of Ministers of Ukraine No. 1392 of December 16, 2009, tariffs for freight transportation by rail should be reviewed annually. However, due to inflation and increasing resource costs, tariffs were not reviewed on time. This caused tariffs to lag behind real costs for electricity (166% increase), diesel fuel (110% increase), and spare parts for traction equipment (217% increase).

Impact of new tariffs on the stability of Ukrzaliznytsia’s operation

The lack of timely tariff adjustments makes it difficult to fulfill important obligations of Ukrzaliznytsia, such as infrastructure repairs, rolling stock maintenance, and employee salary indexation. Given these problems, increasing tariffs will allow the company to effectively fulfill its obligations, as well as contribute to the stable operation of railway transport, which is an important part of Ukraine’s logistics infrastructure.

The last tariff indexation and its consequences

The last indexation of freight tariffs took place in the summer of 2022. However, these changes did not fully compensate for the increase in costs. Given the industrial production cost index at 176.4%, Ukrzaliznytsia proposes to increase tariffs by 37%, which is about 13% per year. This will allow maintaining the efficiency of railway transport.

Changes in the tariff policy of Ukrzaliznytsia: what does this mean for the economy of Ukraine

Changes in the tariff policy of Ukrzaliznytsia are of great importance for the economy of Ukraine. Timely indexation of tariffs will allow maintaining the efficiency of the enterprise and will help it fulfill strategic tasks, in particular, infrastructure repair and rolling stock maintenance.

Increasing tariffs for freight transportation of Ukrzaliznytsia is a necessary step to support the stable operation of railway transport in Ukraine. This will allow maintaining the efficiency of the company, fulfilling important social obligations and ensuring a stable logistics infrastructure for the development of the country’s economy.

Learn more about rail transport news and changes in Ukrzaliznytsia’s tariff policy!