Loading...
image
Vira Cherniak / 18 April 2025

New Perspectives on Railway Transportation Changes

JSC "Ukrzaliznytsia" has commented on the recent changes to the train formation plan, stating that these adjustments were made to evenly distribute the flow of wagons on the Pomichna-Podilsk and Pomichna-Chornomorska routes, as well as to ensure stable operation of traction substations and rational use of locomotives, preventing excessive workload on locomotive crews.

The company provided this information in response to an inquiry from EP.

In the statement, it is noted that there are restrictions on train intervals and electricity supply on the mentioned routes.

Moreover, the existing and potential wagon flow heading towards Ukraine's largest port – MTP "Pivdennyi" has been taken into account.

Additionally, the company reminded that freight tariffs for rail transport within Ukraine need to be indexed annually. However, this requirement has not been consistently fulfilled in previous years, and the dynamics of tariff indexing for rail freight transport have significantly lagged behind price changes for the key resources consumed by the railway.

"In particular, since the last tariff review for freight transport, prices for electricity have risen by 166%, diesel by 110%, spare parts for diesel locomotives by 217%, spare parts for electric locomotives by 22%, bearings by 37%, solid wheels by 20%, and so on," the company's message states.

As indicated in the response, these factors have deprived JSC "Ukrzaliznytsia" of the opportunity to adequately perform repairs on infrastructure and rolling stock, as well as to index railway workers' salaries.

"At the same time, private companies have the ability to conduct tariff indexing by reducing logistics costs, which somewhat allows them to meet their social obligations to staff, including the payment of 13th salaries," advised "Ukrzaliznytsia".

It is worth noting:

Recently, JSC "ArcelorMittal Kryvyi Rih" expressed its "concern" regarding the changes made by "Ukrzaliznytsia" to the train formation plan and the corresponding increase in tariff distance.

"We are extremely worried about the changes that JSC "Ukrzaliznytsia" is implementing from April 5, 2025, which have resulted in an increase in tariff distance for trains carrying our products by 257 km, consequently raising the cost of production significantly."

"We consider this change in routes by the state monopoly "Ukrzaliznytsia" to be artificial and unfounded," the company stated.

The changes to the tariff distance to the Odessa maritime trade port are viewed by "ArcelorMittal Kryvyi Rih" as "artificial and selective" and "do not rule out signs of targeted economic pressure on "ArcelorMittal Kryvyi Rih".