Indexation of cargo rail traffic tariffs depends on approval by profile ministries
The indexation of tariffs for cargo transportation by rail in the territory of Ukraine in 2016 depends on the decision of the Ministry of Economic Development and Trade and the Finance Ministry, PJSC Ukrzaliznytsia has said.
"The draft order of the Infrastructure Ministry on indexation, which is proposed to be carried out in several stages, a yearly average of 28.1%, is being approved by these ministries," reads a press release from the railways administration.
It noted that the increase in tariffs for freight carriage would allow to improve the servicing of cargo owners due to the increase in capital investment, the repair of rolling stock and rail infrastructure, the modernization and repair of railway equipment, the acquisition of new freight cars, repair and modernization of locomotives and so on.
The current level of rail freight traffic tariffs covers operating costs and the cost of repairs, but only a small part of the funds is spent on capital investment to upgrade the fixed assets. Thus, for the past three years there had been observed a decrease in capital investment for upgrading, reconstructing and modernizing fixed assets, which exacerbates the problem of wear of railway infrastructure strategic objects and rolling stock.
