The news from Ukrzaliznytsia regarding the rearrangement of wagons from bogies of one track gauge to another, specifically for UZ’s carriers, has become a significant driver of information this fall, this is reported by the railway transport news portal Railway Supply.

UZ's decision on rearranging bogies will create an imbalance in the market
Dmitry Kazanin. Director and owner of the company TEUS

Observing various market players’ comments in the information space reveals a clear monopoly from a legislative perspective.

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As for the cost, a state-regulated tariff is introduced, indicating UZ’s preference for its rolling stock.

Will this situation affect other market players?

Undoubtedly, yes. Transport and logistics companies with their own fleet will suffer from this situation, incurring unnecessary costs when dealing with UZ.

Is it justified?

From UZ’s standpoint, yes, as it acts in its own interests. However, from the perspective of other market players, they find themselves in an unfavorable situation, especially during the peak transportation season.

While it’s logical for UZ to maximize its grain car potential for profit, ignoring the impact on other market participants isn’t advisable.

Consequently, using a carrier’s own wagons imposes not only higher cargo transport tariffs but also additional fees, such as using the carrier’s wagons and fees for wagons outside Ukraine.

The final cost, comprising various rates, becomes significantly inflated, disrupting the previously fixed and transparent sum.

In summary, Ukrzaliznytsia’s decision regarding the rearrangement of bogies for the carrier’s wagons will create a specific imbalance in the market, putting some participants in a worse position than the “giant” participant.

Is this decision justified for Ukrzaliznytsia?

Yes, but exclusively for itself. Other industry participants will have to accept its rules and adapt their activities accordingly, though their work will undoubtedly continue.

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