Ukrzaliznytsia does not change and does not look for additional sources of income, it only eats each successive tariff increase, the association said.
Further increases in tariffs for rail freight transportation are unjustified and damage the investment climate in Ukraine. This was stated in the statement of the National Association of the Mining Industry of Ukraine (NAGPU), published the previous day.
“Instead of directing their efforts to optimizing costs and improving the efficiency of their activities, the UZ management chooses the path of an unreasonable increase in tariffs for cargo transportation. According to officials report for 2023, UZ received a profit of +5.0 billion UAH, but is already planning an unreasonable increase in costs so that in 2025 he wants to drive the business to a loss of -20 billion UAH This is a direct consequence of the shortage of reforms and ineffective management,” the statement said.
The association believes that the main problem of UZ is not the remaining cost-effective tariffs for cargo transportation (27% in 2023), but the constant increase in costs, lack of effective management and passenger transportation, which losses in 2024 may reach UAH 20 billion.
“UZ is trying to hide the real creeping increase in tariffs under the guise of “consolidation”. It will only increase the costs of maintaining excess personnel and unnecessary infrastructure.
In addition, the increase in tariffs for the transportation of cargo by railways is fraught with the deterioration of the investment climate for Ukraine: large investors in the mining industry are looking for stable and predictable conditions for doing business , and an unreasonable increase in tariffs creates unnecessary risks, the association noted.
“Ukrzaliznytsia not reforming and not looking for additional revenue, it just eats up each subsequent tariff increase. Instead of reducing costs and attracting new shipments, Ukrzaliznytsia chooses the simplest but short-sighted path – increasing tariffs, which causes a blow to the country’s economy, especially in difficult times. Instead of increasing, it is necessary to optimize the fixed costs of Ukrzaliznytsia and attract additional freight on the railway, as well as bring the cost of transportation to the actual costs incurred, “summarized the NAGPU.
Previously on Ukrzaliznytsia said that they earned more than 3 billion Hryvnia in six months, but in July and August the company faced a loss in the range of 600-700 million Hryvnia per month.
Naa Ukrzaliznytsia announced the lack of railways, which could be critical in 2028.
Source: korrespondent
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