“Photo by UNIAN Ukrzaliznytsia’s proposal to increase cargo transportation tariffs by 37% is inappropriate, because most of the company’s customers are enterprises that have already exhausted their margin of safety and will not be able to continue…”, — write: www.unian.ua
Photo by UNIANUkrzaliznytsia’s proposal to increase cargo transportation tariffs by 37% is inappropriate, because most of the company’s customers are enterprises that have already exhausted their safety margin and will not be able to continue their work if the tariffs increase. This was stated by the general director of the Federation of Transport Employers of Ukraine, Volodymyr Husak.“If Ukrainian enterprises had some margin of safety, then during the three years of the war this reserve was completely exhausted. Many Ukrainian enterprises closed down and stopped working, others reduced production. Most Ukrainian enterprises work in survival mode – simply to preserve the foundations of labor collectives. And if because of increase in tariffs of Ukrzaliznytsia, they will be forced to stop production, then they will not be able to resume it even after victory,” Husak noted.
He also emphasized that due to constant increases in the railway tariff, companies are transferring their transportation to highways, and this trend is very unfavorable for Ukrzaliznytsia.
“Historically, Ukrzaliznytsia has always transported 60-70% of all Ukrainian cargo. But, let’s say, in the last year, for 2023, the share of road transportation has increased to 55%, and the share of Ukrzaliznytsia’s transportation has fallen to approximately 40%. A closed circle: Ukrzaliznytsia raises tariffs, part of the customers switches to road transport, Ukrzaliznytsia, in order to compensate for the loss of the freight base, increases again tariffs, and the rest of the enterprises go to the highways. But the main threat is that after each increase in Ukrzaliznytsia tariffs, some of the Ukrainian enterprises lose their workforce and production capacity, and they no longer work for the victory of Ukraine,” Husak emphasized.
He also emphasized that part of the enterprises threatened with closure are city-forming, and therefore local budgets may not receive significant funds necessary for cities. That is why the Ministry of Development of Communities and Territories of Ukraine should take a very deliberate decision regarding the increase of the UZ tariff.
“The final decision must be made by the Ministry of Development, and there they must take into account all points of view and all possible consequences of the tariff increase – not only for Ukrzaliznytsia, but for the Ukrainian economy and for the citizens of Ukraine as a whole. It is this ministry that is currently responsible for the development of territorial communities. And this increase in tariffs will hit territorial communities very painfully – where enterprises will be forced to stop or stop production, because due to another increase in railway tariffs it will become unprofitable. Therefore, we really hope that the Ministry of Community Development will make a well-considered decision, taking into account all the consequences. Because these consequences will be very negative for the economy of Ukraine,” Husak summarized.
As you know, the Supervisory Board of UZ has decided to increase the tariff for cargo transportation by 37%. This project is currently under consideration by the Ministry of Development.
Business opposed this decision. Thus, the Ukrainian Grain Association urged the Ministry of Development not to raise the tariff, considering the negative consequences for farmers. The ArcelorMittal Kryvyi Rih plant has warned that it may close the plant, which employs 20,000 people. And the Danube shipping company announced the danger of stopping the fleet in the event of a tariff increase.