The indexation of freight tariff rates by 37%, as proposed by Ukrzaliznytsia JSC, will not have a critical impact on farmers’ activities.
The relevant statement was made by Ukrzaliznytsia JSC Commercial Department Deputy Director Valerii Tkachov in a commentary to Ukrinform.
According to Tkachov, the cost of railway logistics was USD 21 per tonne in January 2024 and USD 13-14 per tonne in January 2025, with an average grain transportation distance of 650 kilometers.
This came as a result of a reduction in the cost of using grain hoppers. A year ago, its cost was UAH 1,600-1,700 per day, and now the price has reduced to UAH 203-205 per day due to a surplus of wagons. The above made the railway tariff rates to reduce by about USD 8 per tonne.
Tkachov mentioned that Ukrzaliznytsia JSC had offered to adjust tariff rates by 37%, increasing the cost by USD 4 per tonne only. Eventually, the total cost of logistics for farmers will be USD 18 per tonne, which is still less than USD 21 per tonne as it was a year ago.
“Speculations about the critical impact of indexation on farmers have no real basis. These changes will not have a significant effect on farmers. Even before the war, the cost of export logistics was higher, totaling over USD 25 per tonne,” Tkachov explained.
The expert does not give forecasts of the implementation date of freight tariff indexation. This decision is yet to be approved by relevant bodies, such as the Communities and Territories Development Ministry and the Economy Ministry.
A reminder that the work is underway to approve the indexation of freight railway rates in Ukraine. The new tariff rates will not be introduced from February 1, 2025.
Source: Indexation of freight tariff rates not to have critical impact on farmers – Ukrzaliznytsia
