Operators of Ukraine’s intermodal market have appealed to the head of the Ministry of Development, Oleksii Kuleba, with a request not to allow an increase in container transportation tariffs by Ukrzaliznytsia, as this would lead to a drop in revenues to the state budget, worsen the financial condition of Ukrzaliznytsia itself, and become an obstacle to Ukraine’s integration into the EU transport system.
This is stated in a letter signed by companies including MAERSK Ukraine LTD, MSC Ukraine LLC, and CMA CGM Shipping agencies.
“Despite military actions and the unstable economic situation, participants in the container transportation market are making every effort to promote products of national manufacturers to global markets. Thanks to this work, by the end of 2024, the volume of container cargo transportation almost returned to the level that existed before the full-scale invasion. But Ukrzaliznytsia’s actions nullify these efforts,” the letter reads.
The company representatives reminded that Ukrzaliznytsia has currently proposed an initiative to equalize the cost of transporting cargo in containers, which could include loaded twenty-foot containers with a gross weight exceeding 26 tons. This initiative aims to equalize the cost of transporting grain cargo in containers and specialized rolling stock (grain hoppers). However, it could instead lead to cargo being rerouted to roads and a decrease in Ukrzaliznytsia’s revenues.
“Given that the current cost of transportation by rail and road, with practically the same total prices, leans toward road transport because of delivery time (1 day by truck instead of 5 days by rail), as well as the ability of road carriers to work with cash payments, increasing tariffs by the state railway monopoly effectively pushes tens of thousands of containers off the railway onto roads,” the signatories warn.
In this case, instead of the expected additional revenue, Ukrzaliznytsia and its partners may lose hundreds of millions of hryvnias due to reduced transportation volumes, and the state budget will face extra burdens from increased road maintenance and repair costs.
“We ask you to note that if tariff adjustments based on weight are necessary, they should be made based on net weight above 28.5 tons — considering that this is the segment of transportation that triggered the proposal to increase transportation costs for so-called ‘bulk’ containers and does not concern the majority of container operators. This could put an end to competitive battles that involved the railway carrier between grain traders transporting grain in containers from linear elevators to port elevators using hidden preferences and advantages granted by the ‘intermodal train’ status and a separate contract for organizing their runs, and those using standard grain hoppers for these shipments,” the signatories emphasized.
It is known that earlier, the head of the Federation of Transport Employers of Ukraine and first Minister of Transport of Ukraine, Orest Klympush, also stated that increasing tariffs for Ukrzaliznytsia’s container transportation would push Ukraine away from the European Union — since a developed logistics network for container transport will ensure export growth and increased trade.
