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Posted On

07
October
2022

Ukrzaliznytsia plans to simplify freight tariff setting in early 2023

KYIV. Oct 7 (Interfax-Ukraine) – JSC Ukrzaliznytsia plans to simplify the algorithm for calculating freight rates for businesses in early January 2023, CEO Oleksandr Kamyshin said at a meeting with industry participants.

"The current tariff system was introduced in Ukraine in 1997, its last update was carried out in 2008. Since then, we have an extremely complex tariff system of a 150-page book, so it needs to be updated," deputy director of the commercial work department Valeriy Tkachev said.

In turn, Kamyshin added that every year the tariff rates were changed by indexing the existing tariff coefficients, moreover, one that increased the difference between cargo classes.

"This difference in classes has led to the fact that the share of first, second and out-of-class cargo has hardly changed, but the most expensive third class has decreased from 10% in 1997 to less than 7% in 2021. This has led to the fact that businesses with the most profitable cargo for Ukrzaliznytsia started looking for another method of transportation," the head of the company’s board explained.

According to him, in the new tariff setting, the company plans to reduce the number of tariff schemes from 29 to one, from 15 coefficients to one in the amount of 4.326, which will apply to all types of cargo and empty wagons, as well as reduce the number of additional charges from 38 to six.