Ukraine. Growth of tariffs will not reduce grain hoppers deficit

07.03.2017

Maxim Kharchenko freight market analyst at "UkrAgroConsult"

In 2017 the Government plans to raise cargo transportation tariffs by 25%. Ukrainian Railways explained this step by increased prices for material resources, fuel, electricity and the necessity to invest in the rolling stock. This triggered a series of discussions among shippers.

Ukrainian Grain Association questioned tariffs’ increase, given the fact that over the last 3 years grain transportation rates in Ukraine have grown by 88%, reports UkrAgroConsult.

 Despite constant increase in tariffs, Ukrainian Railways was accused of an inability to provide grain hoppers in a necessary quantity. The discussion of necessity to increase the rates is still in progress, but in the meantime the Minister of Infrastructure of Ukraine Omelian said that the rates would not be raised until summer.

According to the State Statistics Committee, in 2016 railroad grain transportation tariffs increased by 11.2%, which did not have such a strong impact as in 2015, when the rates were raised by 42.4%. In 2016 an average growth of grain railroad tariffs in Ukraine reached 12.1%.

Full version of the article is available to subscribers for weekly ag market report “Black Sea Grain & Oil” and “Online market review” by UkrAgroConsult.

 

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