Ukrainian railroad rates for grain transportation exceed the European ones

The Ukrzaliznytsia initiative on the convergence of tariffs for the transportation of various types of cargo, which will raise the cost of grain transportation, is unacceptable for Ukrainian agriproducers since the new tariffs will be too high for shippers. This was informed by the President of the Ukrainian Agrarian Confederation Leonid Kozachenko, CTS writes.

"The tariffs are high for us. The transportation of a ton of grain more expensive in Ukraine than in Europe. The separation of tariffs between the three classes of cars is not the way this should be done," he said.

According to shippers, unification of tariffs is nothing but a hidden rates increase. The difference will lie entirely with domestic producers engaged in the transportation of goods by rail. This concerns agrarians and metallurgists in the first place.

The losses of domestic producers from the introduction of this initiative are estimated at about UAH 5 billion.

Ukrzaliznytsia explains tariffs unification by the fact that some goods are transported by railroads at a lower cost price, and losses are covered by revenues from transportation of highly profitable cargoes.

Reference: over the past month, Ukrzaliznytsia adopted a number of decisions, which in fact mean a hidden increase in tariffs by 10-40% for different types of cargo.

Learn more: Higher and Higher: On the Rise in the Cost of Grain Transportation by Railways (in Russian)