"UZ" wants to raise tariffs again

22 November 2012 11:35  3725058 025613
"UZ" wants to raise tariffs again

"UZ" for the second time this year is trying to increase tariffs for freight transportation.

The state monopoly sent to the Ministry of Infrastructure proposal to increase tariffs by 12% in 2013, writes the "Kommersant-Ukraine".

"UZ" appealed to the Ministry of Infrastructure with a proposal to increase tariffs on freight transportation by 12.2% starting from January 1, 2013, - the head of "UZ" business management department Yuri Merkulov announced on Nov. 21.

According to him, indexation will allow the company to increase revenue by 3.6 billion in 2013.

This year it is the second attempt of the "Ukrainian Railways" to review the current rates.

"In 2012, we planned the indexation of tariffs at 21%. But the Ministry of Economic Development and the Ministry of Finance blocked it, as a result of which in 2012 "UZ" will receive about 2 billion hryvnias less than due" - said Merkulov.

In his opinion, further artificial control of the tariffs will not allow to carry out the necessary modernization of rolling stock.

Predictably the major customers of "UZ" opposed this initiative.

"Rail fares comprise a considerable part in the production of mining and smelting complex. In the current situation of falling demand and prices for complex products, tariff increases will lead to loss of competitiveness of Ukrainian products," - said the vice-president of the Ukrainian Association of Ferrous Metallurgy Enterprises Serhiy Hryshchenko.

"We do not welcome the planned increase raise of tariffs for cargo transportation by rail," - said the commercial director of Ukraine's largest energy holding DTEK Andriy Favorov.

The Head of the Supervisory Board of Ukraine's largest producer of fertilizers Ostchem Oleksandr Khalin says that in nitric chemistry transport costs amount to about 10%.

"It is clear that if the cost of rail transportation increases, it will immediately affect the final price of fertilizers. Thus, the situation will worsen for least two sectors: agriculture and chemistry," - he said.


Tags: UZ, tariffs

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