Ukraine’s rail transport giant JSC “Ukrzaliznytsia” is considering revising tariffs for the transportation of containers weighing more than 26 tons. The main aim of these potential changes is to bring the cost of transporting heavy containers more in line with the cost of transporting grain wagons.
However, these potential tariff revisions are viewed with caution by key industry players. Market participants stress that it is critical to conduct a comprehensive consultation process with carriers before implementing such significant changes. They call for an open and constructive dialogue to avoid potential misunderstandings and operational disruptions between the sectors involved.
Market Players Call Ukrzaliznytsia for Consultation
Pavlo Kolosko, Director of Laude UA, warns that Ukrzaliznytsia’s unilateral decisions without prior consultation with market players could seriously disrupt the overall logistics process. Kolosko notes that this could negatively affect not only grain transportation, but also other types of general cargo, such as rolled steel, ilmenite and ferroalloys. He points out that such a tariff increase could have negative consequences, especially in difficult economic conditions, when carriers are trying to reduce transportation costs by using high-capacity containers.
Freight Flows Could Shift to Road if Heavy Container Tariffs Increase
Market participants note the risk that in the event of a significant increase in tariffs for heavy containers, some types of cargo may shift from rail to road transport. They are concerned that this potential shift will further increase competition for rail transport and, as a result, may lead to a decrease in Ukrzaliznytsia's revenues.
Operators Expect Clear Regulation and Clarification
Operators in the sector also stress the need for clear and transparent regulations, as well as tariff changes. In particular, they say, it is necessary to resolve uncertainties about whether the 12th scheme of the Tariff Guide will be implemented in the future or whether any changes will be made to container classification. It is vital that these issues are formally and timely clarified by Ukrzaliznytsia, so that market players can anticipate possible changes and adapt their operations accordingly.
Considering that container shipping volumes in Ukraine last year exceeded 258.000 TEU, and grain cargo accounted for 46% of this total, the importance of a balanced and market-compatible tariff policy becomes evident once again. Ukrzaliznytsia’s decisions are expected to be shaped in cooperation with industry stakeholders, taking into account both the future of rail transport and their impact on the overall logistics chain.
