PJSC ArcelorMittal Kryvyi Rih (Dnipropetrovsk region) strongly opposes the increase of the so-called infrastructure component of tariffs for use of wagons.

Head of the external logistics department of ArcelorMittal Kryvyi Rih Andriy Moroz said in an interview posted on the corporate website last week, the enterprise did not mind when PJSC Ukrzaliznytsia increased tariffs in November 2017.

"We also have no objections to the next increase of the rates for the use of Ukrzaliznytsia's cars from UAH 546 to UAH 600 per day (excluding VAT) from July 27," he said, adding that this approach contributes to a more equitable distribution of wagons and an increase in their number in operation, and also allows Ukrzaliznytsia to avoid cross-subsidization.

At the same time, the company objects to the growth of the infrastructure component of the tariff, as the number of locomotives has decreased since September last year, that is, the funds received by Ukrzaliznytsia as a result of the tariff increase in November 2017 have not been appropriately used. And we see no grounds for further growth in the infrastructure component of the tariff," the manager said, adding that the company is against a hidden tariff increase.

"Since July 27, Ukrzaliznytsia has increased the standard term for the delivery of goods by two days. And in fact we will have to pay not UAH 54 more due to a tariff increase from UAH 546 to UAH 600, but also an additional UAH 1,200 for each trip across Ukraine. The leveling of cargo classes is being discussed. In fact, it is not so much about leveling as it is about paying for empty cars that carry third-class cargo (in our case, concentrate). This payment would grow by 90%! Some large companies believe that "leveling "classes will cost UAH 5.5 billion to all cargo dispatchers in Ukraine in a year. Ukrzaliznytsia calculated a figure of over UAH 800 million by the end of this year, if they introduce it. For one year it would be around UAH 3.9 billion," Moroz said.

According to him, the steel plant is not ready to accept another hidden and significant increase, stressing that Ukrzaliznytsia needs to take into account the opinion of market participants who are categorically against these decisions.