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The Association of Miners appealed to the Prime Minister because of the tariffs of Ukrzaliznytsia – media

Photo: Sotsmerezhi

Today Ukrzaliznytsia’s tariffs in US dollars are on average one and a half times higher than the tariffs of pre-war times, the association calculated.

The expected increase in tariffs for rail freight transport in Ukraine will have extremely negative consequences for the mining industry and, in general, for the defense capability of the state. This was stated in a letter from the Association of Mining Enterprises (NAGPU) to Prime Minister Denis Shmygal, RBC-Ukraine reported on Wednesday, August 21.

“Mineral minerals and industrialists are probably the biggest losses due to the war: a large number of mining facilities, mining and metallurgical plants, and mining and metallurgical complexes found themselves, if not in under work, then under about 40% of mining enterprises have stopped their operations as a result of hostilities The metallurgical industry in general will not recover at least 40% of its capacity,” said of the letter.

The association noted that in such a situation, every additional financial burden on businesses, especially in terms of additional logistics costs, could have catastrophic consequences.

“At the same time, with the opening of sea ports, there is a noticeable revival in rail cargo transportation. In the first half of 2024, Ukrzaliznytsia received revenue from cargo transportation at the level of UAH 43 billion ( +17% compared to. previous year) and UAH 3.1 billion in revenue “It is unacceptable, instead of increasing the efficiency of the railway monopoly, to uncontrollably and endlessly expand the cost base and increase costs , which systematically drives a strategic business into bankruptcy,” NAGPU said.

The association reports that the profitability of cargo transportation in 2023 is +27%, and a loss of UAH 20 billion is expected from passenger traffic. But Ukrzaliznytsia still has no concrete plans to optimize costs, increase business productivity and further develop its cargo base.

“Cargo has fled the railways due to high tariffs on the roads, and the management has a unique plan of action for this case – to increase the tariffs for the cargoes that are still left, but raising the tariffs on the railway will invalidate the record of transportation of raw materials and leave Ukrzaliznytsia without additional income,” said the letter.

The NAGPU calculates that today Ukrzaliznytsia’s tariffs in US dollars are on average one and a half times higher than the tariffs of pre-war times. Some enterprises can no longer operate unprofitably and therefore reduce production indicators, which means that Ukrzaliznytsia receives less income from transport, the association said. Meanwhile, EU countries are introducing tariff incentives aimed at supporting rail transport.

“In Ukraine, the introduction of such incentives can also be an effective tool to support domestic business and strengthen the economy. The state budget and the stability of the national currency will benefit from this, we urge you to educate JSC Ukrzaliznytsia step aimed at reducing costs and reducing tariffs for cargo transportation for by increasing the volume of cargo traffic We are confident that this step will help restore the country’s economic potential and strengthen its defense capability,” concluded the association.

The publication recalls that earlier the head of Ukrzaliznytsia Yevgeny Lyashchenko said that the company is planning another tariff increase, although it now records a profit of UAH 3.1 billion.

Earlier it became known that in January-June 2024, Ukrzaliznytsia transported more than 90 million tons of cargo, which is 28% more than the same period in 2023, in particular, the volume of export traffic increased big

Ukrzaliznytsia ordered an audit due to the identified violations
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Source: korrespondent

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