The “Ukrcement” Association advocates for a measured increase in rail freight rates, which, on the one hand, will help JSC “Ukrzaliznytsia” (UZ) maintain its capacity to transport cargo, and on the other hand, will not lead to the closure of operating enterprises.
“As business representatives for whom rail transport accounts for more than half of all shipments, we have no interest in a scenario where transport collapses, just as we have no interest in the collapse of any industrial sector. Therefore, we are ready to cooperate to find a realistic solution to today’s complex situation. By agreeing to the tariff increase, we want to see where the additional payments from businesses will go and understand how delivery times to consumers and the turnaround time for empty railcars will be reduced,” said Pavlo Kachur, chairman of the “Ukrcement” Association.
He emphasized that UZ deserves respect and support for its work in transporting cargo for the front lines and national defense, but the situation with the freight transportation of products manufactured in Ukraine—both for the domestic market and for export—is becoming critical and requires joint, and possibly even emergency, measures and actions at the level of the Cabinet of Ministers. “This is not about a single industry or a specific plant, but about Ukraine’s economy as a whole. Therefore, it is the duty of manufacturers and Ukrainian Railways to work together to achieve a positive outcome,” noted the head of the cement manufacturers’ association.
The expert pointed out that, according to Ukrainian Railways, freight transportation remains profitable, businesses pay market rates for transportation, and an additional increase in tariffs is needed to cover losses from passenger transportation.
He highlighted the pressing problems facing the domestic railway: a lack of traction, an exodus of skilled personnel due to low wages, and the (chronic) unprofitability of passenger (especially commuter) transportation. In particular, the situation with traction is critical. According to Ukrzaliznytsia’s estimates, the current average speed of freight car transport is 37 km per day, compared to the standard of 200 km for single-car shipments and 300 km for scheduled services. The average daily number of scheduled locomotives not assigned to formed trains reaches 50.
“The top priority for improving transportation is to secure backup traction. The market expects Ukrzaliznytsia to present a program for modernizing its locomotive fleet as soon as possible. For our part, we see the most realistic and expedient solution to this problem as opening access for the transport of products using our own traction to the nearest marshalling yards. Ukrzaliznytsia’s experience with such transport operations, successfully tested by PJSC “Ivano-Frankivskcement,” has demonstrated its effectiveness and economic benefits for both the manufacturer and Ukrzaliznytsia, and could significantly free up Ukrzaliznytsia’s locomotives for more profitable operations,” Kachur believes.
He emphasized the staffing issue, noting that low wages are causing an exodus of skilled personnel (primarily locomotive engineers, assistant engineers, loaders, and station workers). “As a result of the tariff increase, competitive wages for employees involved in the transportation system—locomotive engineers, assistant engineers, train dispatchers, and station workers—must become a priority,” says the head of “Ukrcement.”
Regarding passenger transportation, he drew attention to the negative trend of increasing volumes of unprofitable passenger service against the backdrop of declining freight volumes. “The financial pressure on operating businesses due to the cross-subsidization mechanism is exceeding reasonable limits,” Kachur stated. In his view, before raising freight rates, Ukrainian Railways should propose a model for optimizing passenger transportation.
The business community expects Ukrainian Railways to take systematic and responsible steps—such as developing programs to modernize the locomotive and railcar fleets and establishing a model for commuter transportation. As soon as possible, the procedure for admitting private traction must finally be adopted (as provided for in regulatory documents), indicators for freight delivery and the circulation of empty railcars must be approved, and the issue of decommissioning railcars must be revised (based on technical condition rather than a calendar schedule).
“We need extraordinary measures, at least for the duration of the war, which will include a measured increase in freight rates, full transparency toward businesses and the public regarding the allocation of funds received from the rate increases—in particular, raising the salaries of locomotive engineers, assistant engineers, freight handlers, and station employees to market levels,” Kachur noted.
In his opinion, given the scale of the problems, the consideration and adoption of anti-crisis measures should take place at the level of the Cabinet of Ministers.
As previously reported, on Monday, the Ministry of Community and Territorial Development of Ukraine published a draft order providing for a 30% indexation of rail freight tariffs effective August 1, 2026, and the standardization of tariffs for the transportation of empty railcars. Ukrzaliznytsia plans to make a separate decision regarding the next stage of freight rate indexation, which could take effect on January 1, 2027.
According to the Ministry of Development, in 2025, freight volumes decreased by 12.5% compared to the previous year, and Ukrzaliznytsia’s net loss amounted to 7.6 billion UAH. In the first four months of 2026, the loss reached 9.3 billion UAH.
Source: https://interfax.com.ua/news/economic/1178777.html
CEMENT, locomotive, TARIFF, UKRCEMENT, UKRZALIZNYTSIA, качур
