“Kazakhstan Temir Zholy” has reduced the share of foreign currency loans to 34%

Over the past two years, National Company Kazakhstan Temir Zholy JSC has managed to reduce the share of debt in “hard” currency from 57% to 34%. This made possible to avoid exchange rate loss in the amount of 40 billion tenge (2.6 billion UAH) in 2020, reports Railway Supply magazine with reference to zakon.kz

Kazakhstan Temir Zholy

In an interview Dair Kusherov, Deputy Chairman of the Board for Finance of JSC “NC“ KTZ ”, noted that this is the first most important result of work to improve the financial stability of the company. The second step, he said, is the withdrawal of unprofitable or non-core assets. During the previous two years, 21 enterprises left the KTZ group of companies. In particular, stakes in Aktobe Rail and Steel Works LLP, Continental Logistics LLP, Vostokmashzavod JSC were sold, airports were removed from management. These assets annually showed a negative financial result in the amount of 7 billion tenge.

“Thirdly, in terms of cost optimization, results were achieved to reduce specific fuel and electricity consumption, fuel storage costs, which will save up to 20 billion tenge annually. In addition, a reduction in the cost of acquiring licensing agreements in the field of information technology by 9.9 billion tenge was achieved, as well as a decrease in annual costs from the optimization of IT processes in the group by 3.8 billion tenge, ”said Dair Kusherov.

Among the further priority areas of the company, he named the development of transit container transportation.

“A very important step of a strategic nature was the introduction of changes in the tariff setting system for rail freight transportation. The support provided by the government of the country and the responsible state bodies allowed for changes in the tariffs for the transportation of goods. Namely, from the regulated tariff, the costs associated with passenger locomotive traction were separated, and differentiation of the tariff on electrified and non-electrified routes was achieved, “said the deputy head of the board, adding that as a result of all the above measures, the KTZ group of companies at the end of 2020 goes to a profit of 15.2 billion tenge.

The specialist noted that today the main debt of KTZ remains at a very high level – 1.9 trillion tenge (130 billion UAH). This is mainly due to the implementation of the investment program in the period 2012–2018. About 2.7 trillion tenge was invested in infrastructure, rolling stock, as well as social projects. In addition, the devaluation of the national currency and the low level of tariffs for freight transportation made their contribution.

Related:

Over 7 thousand container trains passed through Kazakhstan in 2020

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