Ukrzaliznytsia expects that company to post some UAH 1 bln of net loss in 2015
Public joint-stock company Ukrzaliznytsia tentatively will see around UAH 1 billion of net loss in 2015, Infrastructure Minister of Ukraine Andriy Pyvovarsky has said.
At a meeting of the parliamentary transport committee on Monday he said that the increase of depreciation, hryvnia devaluation that added extra to servicing of the debt, growth of electricity, fuel and lubricant prices led to the loss.
The minister said that if in 2016, the tariffs for cargo transportation by rail are not increased, Ukrzaliznytsia would see around UAH 6 billion of net los in 2016, and its capital investment would be only UAH 3.7 billion.
As reported, it was originally planned to raise freight rail tariffs in 2016 in two stages: by 30% as a whole from January 1 and July 1 by 15%.
In early January 2016 Ukrzaliznytsia reported that 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.
Ukraine's Minister of Economic Development and Trade Aivaras Abromavicius in the disputable issue of railway tariffs proposed in the near future to introduce only a 15% increase in tariffs for freight rail carriers, postponing a further increase until the time the situation is analyzed in detail.
The associations and unions of large industrial enterprises in Ukraine, representing metallurgical, chemical and cement companies, have sharply criticized the intention of Ukrzaliznytsia to once again raise tariffs for rail freight transportation by 15% from March this year, supporting the initiative for a moratorium on increasing rail tariffs for 2016. The letter noted that the previous raise in tariffs by 30% took place in February 2015.
Pyvovarsky at a meeting at Ukrzaliznytsia on February 10 said that tariffs for freight transportation by rail will be increased by 15% from March 1 (for all types of cargo except for coal) if the rise is approved by all the interested agencies.
