The increase in tariffs for cargo transportation raises very big questions about the efficiency of the work of “Ukrzaliznytsia”, – the expert

Photo by ua.depositphotos.comThe increase in tariffs for freight transportation, which is currently being initiated by Ukrzaliznytsia, raises serious questions about the efficiency of the company’s management, because over the past decade, no increase has helped UZ to provide better services. Andrii Tarasenko, chief analyst of GMK Center, said this.

“The consequences of the increase must be calculated, because it is, in fact, a redistribution of funds: money is taken from business and directed to railway transport. That is, business has less money, and state-owned companies have more. And this is an original debate, whether these state monopolies have efficiency,” says Tarasenko.

At the same time, he noted that the business is ready to pay more for services, but only if these services are provided qualitatively, and the increase is comprehensively justified. But currently none of these conditions have been met.

“The increase must first of all be justified, and secondly – lead to the fact that some services are increased. But according to the experience of the last, maybe 10, maybe all 30 years, this does not happen. And the increase in tariffs is very large the question of the efficiency of the work of these state monopoly companies,” Tarasenko emphasized.

According to him, the consequences of raising tariffs will be extremely negative – because currently the situation on foreign markets is not good for Ukrainian exporters.

“Currently, the situation on the world markets is very unfavorable, so we forecast a 15% decrease in steel exports from Ukraine – and this is provided that the tariffs remain unchanged. In addition, the duty-free trade regime with the EU will probably not be extended next year due to In addition, there are many serious risks, including the supply of electricity and coking coal extremely painful,” the expert summed up.

As a reminder, thanks to the increase in the volume of transportation, Ukrzaliznytsia received UAH 1.7 billion in net profit in the three quarters of the year, and its turnover increased to UAH 78 billion. At the same time, the company significantly increased operating costs, and because of this, initiated a 37% increase in freight rates.

Business strongly opposed this decision: the associations called on the management of UZ to more effectively dispose of billions of profits, because the consequences for the economy could be catastrophic. For example, the Danube Shipping Company announced the shutdown of the fleet in the event of a tariff increase, and the ArcelorMittal Kryvyi Rih plant warned of the risk of closing the plant, which employs 20,000 people.