The Supervisory Board of Ukrzaliznytsia JSC (UZ) has approved the indexation of freight transportation tariffs, the company’s press service reports.
“Tariffs for rail freight transportation have not been indexed for almost two years – since the summer of 2022, and the previous indexation did not bring tariffs to an economically justified level. During this time, the producer price index for industrial products has already reached 176.4%. At the same time, the railroaders proposed to limit the indexation of tariffs to a much more moderate figure: only 37%, or about 13% per annum, given that 2.5 years have passed since the last indexation,” the press service said.
It is noted that the proposals to increase tariffs were approved by the board of UZ on December 5, 2024.
The approved changes will be further submitted for consideration by the Tariff Council under the Ministry of Communities and Territories Development of Ukraine, UZ said.
The company reminded that according to the Cabinet of Ministers Resolution No. 1392 of December 16, 2009 “On Ensuring Transparency of the State Tariff Policy for the Transportation of Goods by Rail within Ukraine”, tariffs for the transportation of goods by rail within Ukraine should be indexed annually.
“Unfortunately, this rule was not regularly implemented and the dynamics of indexation of tariffs for rail freight transportation lagged far behind changes in prices for the main resources consumed by the railroad,” UZ said, recalling that tariffs for rail freight transportation had not been indexed for almost two years – since the summer of 2022, and the previous indexation did not bring tariffs to an economically justified level. During this time, the producer price index for industrial products has already reached 176.4%.
Since the last revision of freight transportation tariffs, electricity prices have increased by 166%, diesel prices by 110%, spare parts for diesel locomotives by 217%, spare parts for electric locomotives by 22%, bearings by 37%, and solid-rolled wheels by 20%.
It is noted that this deprived the company of the opportunity to repair infrastructure and rolling stock to the required extent, as well as to index the salaries of railway workers, of whom more than 10 thousand are defending Ukraine in the ranks of the Armed Forces, and to fulfill social obligations to them.
“The indexation of freight transportation tariffs is vital for the Ukrainian railways to operate sustainably and meet safety standards. The level of tariff indexation was calculated to be at least sufficient to finance operating expenses and carry out critical infrastructure repairs,” the press service of Ukrzaliznytsia quoted Hafer Cheetah, chairman of the company’s supervisory board, as saying.
It is reported that the planned indexation will make it possible to finance the repair of rolling stock and infrastructure at the minimum required level. Otherwise, there will be significant risks to the continuity of the safe operation of the state’s critical infrastructure.
Oleksandr Pertsovskyi, Chairman of the Board of Ukrzaliznytsia, promised to openly present and explain to customers the changes in the upcoming freight tariffs.
“We will openly present and explain the indexation proposals to our customers, both the largest and smaller shippers from all sectors of the economy, and will also fix with them what compensations and operational improvements they expect from Ukrzaliznytsia,” the press service quoted the chairman of the board of Ukrzaliznytsia as saying.
He emphasized that the railroad continues to deliver cargo reliably despite daily shelling and is restoring track and power infrastructure as soon as possible to avoid letting customers and the entire Ukrainian economy down.
“At the same time, we owe a significant debt to the railroad workers themselves – their salaries are significantly lower than the industry average, and a number of social benefits have been suspended. Indexation of tariffs is critically necessary to ensure that the working conditions of railway workers do not deteriorate,” Pertsovsky said.
Earlier it was reported that the Tariff Council under the Ministry of Community Development, Territories and Infrastructure (MiRD) approved the draft decision on the unification of tariffs for freight transportation by rail.
As reported, Ukrzaliznytsia and representatives of Ukrainian business are working together to unify the tariff setting system for rail freight transportation proposed by Ukrzaliznytsia starting in October 2022.
Former Ukrzaliznytsia CEO Yevhen Lyashchenko said in an interview that without unification, the company would not be able to end the year with a profit. According to him, the company’s plan for 2024 is not to increase freight tariffs but to harmonize them. This implies a complete change in the model of their calculation by simplifying the tariff system, which consists of five different classes and more than 20 coefficients. The proposals include a single tariff for the transportation of empty wagons and a division into classes linked to transportation technology.
According to preliminary estimates, the harmonization of tariffs should bring the company an additional UAH 3-4 billion by the end of the year, depending on when the government approves this decision.
“Ukrzaliznytsia has announced the launch of ticket sales for the new international train No. 9/10 Kyiv-Budapest, the company’s press service reports.
“The long-awaited route, implemented in cooperation with the Hungarian railways, will start running on December 15,” the telegram says.
It is noted that the train will be an important step in relieving congestion at popular international destinations by providing a direct connection to Budapest, one of the key transportation hubs in the region. Passengers will be able to conveniently reach Vienna, Munich, Zurich and other European cities.
For comfortable travel, the train will also have compartment and luxury sleeping cars that meet the usual standards for Ukrainian passengers. The schedule provides for departure from Kyiv at 10:16 with arrival in Budapest at 06:00 the next day. The return flight will depart at 22:40 and arrive in Kyiv at 19:11. A ticket in a compartment carriage costs UAH 2800.
Tickets are already available in the app and on the official website of Ukrzaliznytsia.
Ukrzaliznytsia JSC (UZ) has doubled the free internet limits in Intercity and Intercity+ trains to 2GB, the company’s press service reports.
“Ukrzaliznytsia has doubled the internet limits on Intercity and Intercity+ trains. From now on, users on trains can access 2 GB of traffic at a speed of 10 Mbps for free. So don’t waste a single minute while traveling – communicate with your family, friends, colleagues, and partners while continuing to travel on schedule,” she said in a telegram on Wednesday.
It is specified that since the launch of Wi-Fi in Intercity, 750 thousand passengers have used it – in fact, every second passenger on high-speed trains. The total traffic on board exceeded 2.3 petabytes.
The most active Wi-Fi users travel on routes #741/742 and #777/778 Kyiv-Lviv, where an average of 66% of passengers on each flight connect to the Internet, UZ said in a statement.
The company reminded that the Internet is already available in 16 Intercity trains: ten Hyundai, two Skoda, two Tarpans, and the same number of trains with MPLT cars.
Earlier, Ukrzaliznytsia launched free Wi-Fi in ten Intercity and Intercity+ trains. Travelers have the opportunity to use 1 GB of traffic at a speed of 10 Mbps by logging in to the onboard portal portal.uz.com.ua.
It was also reported that Oleksandr Pertsovsky, Chairman of the Board of JSC Ukrzaliznytsia, promised to equip long-distance night trains with Wi-Fi starting in 2025.
In January-October, Ukrzaliznytsia (UZ) increased passenger traffic by 12.7% to 23.3 million passengers compared to the same period last year, the company’s press service said on Thursday.
“In October, UZ carried 2.3 million passengers, which is 100 thousand passengers more than in September, when there is traditionally a decline in the dynamics of passenger traffic compared to the summer season,” the press service of UZ said in a statement on its telegram channel.
It is reported that the most popular flight is train #128 Zaporizhzhia – Lviv, which carried 53 thousand passengers in October. The second and third places, as in the previous month, were taken by high-speed trains of the Przemyśl direction – No. 705/706 and No. 715/716 with 51 thousand and 48 thousand passengers, respectively.
The most popular route was Lviv-Kyiv-Lviv: 125 thousand passengers traveled between these cities in October.
In October, passengers purchased 532 thousand servings of hot drinks, including tea and coffee.
By the end of 2024, Ukrzaliznytsia’s branch, the Transport Logistics Center (TLC), will receive 120 units of new grain carriers of the 19-8005-U model, the center’s website reports.
“Grain carriers are designed to operate throughout the entire 1520 mm gauge railroad network and have the ability to be switched from 1520 mm gauge type 2 bogies to 1435 mm gauge bogies with screw ties and buffer devices, with a design speed of up to 120 km/h, which eliminates the need to connect coupling cars,” the Center for Transportation Logistics said.
According to the report, the grain carriers with a carrying capacity of 69.5 tons have a body volume of 104 cubic meters, size 02-VM, five loading and six unloading hatches.
Ukrzaliznytsia (UZ) has updated information on the temporary cancellation and rerouting of a number of flights due to the massive flooding in Eastern Europe, including the cancellation of the Vienna-Budapest-Kyiv flight, the rerouting of the Chop-Vienna-Chop flight, and the introduction of shuttle service on the Prague-Premyshl-Prague flight.
“The Vienna – Budapest – Kyiv flight has been canceled today. Passengers with tickets in Vienna are asked to come to the information and service center and receive vouchers for free accommodation,” the company said on its Telegram channel.
For its part, Ukrzaliznytsia clarified that the Kyiv-Budapest-Vienna flight will be heading to Budapest. The company also announced a change in the route of Chop-Vienna-Chop flights, which will be detoured to the final station of the route.
The company also informs about the cancellation of train traffic on the route Prague – Przemysl – Prague and the organization of alternative routes.
“Prague-Premysl-Prague trains are not yet able to pass the flooded area on the Czech-Polish border. Tomorrow, shuttle traffic is expected from Prague to the border and from Przemyśl to the border with a bus shuttle around the flooded area,” the carrier said.