Ukrzaliznytsia: imbalance between cost of consumables for railways and fares growing

16:48, 14.02.2013 1 min read

Constantly rising prices for fuel and other consumables for the railways along with no indexation of freight tariffs reduce the profitability of railway transport, payments to the national budget, restrict the industry's possibility of upgrading rolling stock, modernizing infrastructure and implementing the social mission of railways.

According to the press service of State Railways Administration Ukrzaliznytsia, in 2009, 2010 and 2012 freight transportation tariffs almost did not rise. Only in 2011, according to the decision of the government, the rates were increased by 24%, but this was not sufficient to cover the increase in prices for consumables for the same period.

"Thus, the railways is the only industry that continues to artificially operate in non-market conditions, paying for such things using its own funds and at the expense of development resources," said Ukrzaliznytsia.