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The new Minister of Infrastructure announced an increase in tariffs for rail freight

The new Minister of Infrastructure Oleksandr Kubrakov, the former head of Ukravtodor, will lobby for an increase in tariffs for freight rail transportation.

He stated this during a speech from the rostrum of the Rada in the process of appointment to the Minister of Infrastructure position.

According to him, Ukrzaliznytsia (UZ) "must win back its share" in the freight market.

"We understand that there is business that is interested in reducing tariffs or keeping them at the current level, because business minimizes its costs. On the other hand, Ukrzaliznytsia runs down this way. The deterioration level of the main infrastructure reaches 90%, therefore we cannot but raise the tariffs for transportation," Kubrakov stated.

Recall that in December 2020, the previous management expressed disinterest in increasing tariffs for rail freight transportation in 2021. In return, the company intends to reduce the cost of its own services.

On Thursday, May 20, 2021, the Verkhovna Rada appointed the former head of Ukravtodor Oleksandr Kubrakov as Minister of Infrastructure. 284 people's deputies voted for the corresponding appointment.

Reference. Shippers are UZ's main clients that generate its profits. Among them are the country's main oligarchs, with Rinat Akhmetov having the largest share of transportation. According to industry experts, UZ's freight rates are extremely understated.

At the end of 2020, UZ reduced freight transportation by 2.3% compared to 2019—to 305.4 million tons.


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