UZ proposes to radically change the system of tariff formation, which has been functioning for the last 25 years. Railway Supply magazine writes about this with reference to Rail.insider.

UZ tariffs
Picture: Logist.Today

On Thursday, during a meeting of the Export Office at Ukrzaliznytsia, Alexander Kamyshin, Chairman of the Board of JSC Ukrzaliznytsia, said: “The proposed changes are designed to significantly simplify the existing rules, completely abandon the current Collection of tariffs for the transportation of goods and make tariffs fair for all market participants.”

An initiative presented at the event proposes to reduce the number of base rate schemes from the current 29 to one. In the existing scheme, take into account only the distance of transportation, the mass of cargo, the features of transportation and routing. The initiative also proposes to reduce the number of coefficients from the existing 15 to one. In addition, it is planned to significantly reduce the number of additional fees and individual fees from senders for work. Instead of 38 fees established by the current tariff book, it is proposed to leave 6. It is proposed to leave a separate fee only for special transportation and security services.

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“For ten years, the issue of the fairness of the tariff setting system has been a painful topic in relations between carriers and shippers. We understood this, therefore, since the middle of last year, we have been gradually changing it. Today we want to simplify the existing system as much as possible and make it fair for all market participants,” said Alexander Kamyshin.

In addition to changing the approach to tariff setting, Ukrzaliznytsia also proposes to equalize the classes of freight traffic and establish a single tariff for the transportation of empty wagons.

“These initiatives do not affect the financial results of Ukrzaliznytsia in any way, but they change a lot for cargo owners. After their adoption, the existing discrimination of some manufacturers will completely disappear. In fact, all this is part of the movement of both the company and the whole country towards European integration,” Alexander Kamyshin added.

The current tariff setting system has been operating since 1997, and the last adjustments were made to it in 2008.

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