Business news from Ukraine

JSC UKRZALIZNYTSIA (UZ) PLANS TO RECEIVE MORE THAN UAH 72 BILLION IN REVENUE FROM RAIL FREIGHT TRAFFIC IN 2021, WHICH IS 10% MORE THAN IN 2020

17 March , 2021  

The volume of revenues from freight traffic in 2020 was affected by the factor of a large share in the transportation of non-class goods, the tariff for the movement of which is much lower than the economically justified one, the press service of UZ said on Tuesday.
Ukrzaliznytsia notes that the company has already initiated the transfer of non-class cargo to the first class in the Ministry of Infrastructure of Ukraine. It is about the liberalization of tariff formation in freight traffic and the need to get rid of the atavisms that have existed since Soviet times, when goods are divided into classes. The classifier determines which coefficient is added to the tariff. The logic of this division was that the tariff for the carriage of goods depended on its value, which is not relevant in a market economy.
This year, UZ plans to transport 314 million tonnes of cargo, which is almost 3% more than in 2020.
As reported with reference to UZ, Ukrzaliznytsia in September-December 2020 increased its revenue from cargo transportation to UAH 22.04 billion. During this period, the average monthly income from cargo transportation amounted to UAH 5.5 billion, which is 4.5% more than in July-August and 7.9% more than in January-June 2020.