Ukrzaliznytsia believes free tariff formation in cargo shipments should be introduced

The State Railway Administration of Ukraine (Ukrzaliznytsia) has said that the free tariff formation in cargo shipments by rail should be introduced, acting Head of Ukrzaliznytsia Maksym Blank has told reporters.

He said that a free-forming tariff is needed. The clear and simple competitive mechanism for tariff formation should exist with equal access to infrastructure.

"We ask that we were given a chance to work normally – with the limits, but with free competition. Then we'll be able to be more flexible in transportation," he said.

Blank added that the retaining of a large volume of transportation is important for Ukrzaliznytsia.

As reported, referring to Blank, Ukrzaliznytsia forecasts that the cost of its services will increase, as another form of tariff formation should be used.

"The duplicating functions should be removed… we need the consequent reduction in subsidizing of passenger transportation," he said.

The planned increase by 30% in tariffs for cargo shipments by rail will not justify the current cost of Ukrzaliznytsia.