Ukrzaliznytsia initiating raising fares in passenger trains by 10% in July and October

State Railways Administration of Ukraine Ukrzaliznytsia has initiated the raising of fares in internal trains by 10% in July and October 2014 in all categories of passenger cars, except for first class cars and Intercity+ trains.

"That means that the increase in tariffs in December 2014 to December of the previous year will be 21%. Tariffs for baggage and cargo carriage will not be changed," the press service of the administration said.

The authority said that while currently the fare in second-class carriages of passenger train No. 81 Kyiv-Uzhgorod (915 km) is UAH 135.99, in compartment cars – UAH 237.09, then after the first step of increases the tariffs would be UAH 146.53 and UAH 257.75 respectively.

Now the fare in the second-class carriage of passenger train No. 84 Kyiv-Mariupol (876 km) is UAH 120.23, and in compartment cars - UAH 210.69. After the first phase of tariff increase the fares will amount to UAH 129.59 and UAH 228.55 respectively.

"The last time the tariffs for carriage of passengers on domestic routes in second class and compartment cars were increased was in October 2013. During the previous year and this year the price of products purchased for the needs of the rail industry raised significantly. In particular, the price of locomotive bandages grew by 21.3%, wheels – by 11.7%, brake pads – 8%, diesel fuel – 40%, electricity – 13.5%. Prices for overhauls of locomotive and wagon rolling stock grew by more than 8%," reads a press release from the administration.

Ukrzaliznytsia notes that the increase in tariffs was due to the need to reduce this difference, although it won't resolve the problem of losses from passenger services.

"Tariffs for passenger services will continue to be below zero profitability. This will allow to partially reduce cross-subsidization of passenger transportation at the expense of cargo handling, ensure traffic safety and reduce costs for maintaining the park of passenger cars, the wear and tear of which is 86%, that of diesel locomotives - 95.1%, electric locomotives - 91.6%," reads the press release.

Ukrzaliznytsia emphasizes that after the draft order is posted on the Web site of the Infrastructure Ministry, it will be coordinated with ministries and agencies, and then will be submitted for state registration. New rates will take effect from the date of the official publication of the document.