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Changes in Tariffs and Routes of Ukrzaliznytsia

18 April 2025

JSC "Ukrzaliznytsia" has announced new changes in the train formation plan, stating that this decision was made to optimize the freight flow on the Pomichna-Podilsk and Pomichna-Chornomorska routes. This will also assist in the stable operation of traction substations and effective use of locomotives, while preventing overloading of locomotive crews.

The company provided a response to an inquiry from EP, confirming the information.

In the message from UZ, it is also mentioned that there are established restrictions on the intervals between trains and the supply of electricity on the mentioned routes.

In making this decision, the existing and potential freight flow to the largest port in Ukraine - the MTP "Pivdennyi" was taken into account.

Moreover, UZ emphasized that freight tariffs should be indexed annually. However, in previous years, this rule was not followed, and the dynamics of tariff increases lagged behind changes in the prices of the main resources used by the railway.

"Since the last tariff review, the prices for electricity have risen by 166%, diesel - by 110%, spare parts for locomotives - by 217%, spare parts for electric locomotives - by 22%, bearings - by 37%, solid-rolled wheels - by 20%", the company stated.

As a result of these factors, as noted in the response, Ukrzaliznytsia is not able to adequately perform repairs on infrastructure and rolling stock or index salaries for its employees.

"At the same time, private companies can carry out tariff indexing due to reduced logistics costs, allowing them to fulfill their social obligations to their teams, including the disbursement of the 13th salary", UZ pointed out.

It should be noted:

Recently, JSC "ArcelorMittal Kryvyi Rih" expressed "concern" regarding the changes made by "Ukrzaliznytsia" in the train formation plan and the corresponding increase in tariff distances.

"We are extremely concerned about the change in the train formation plan by JSC "Ukrzaliznytsia" effective from April 5, 2025, which has resulted in an increase of the tariff distance for trains carrying our products by 257 km, thereby significantly raising the cost price of the products."

The company considers these route changes to be artificial and unfounded.

The change in tariff distance to the Odesa Maritime Trade Port is regarded by "ArcelorMittal Kryvyi Rih" as "artificial and selective" and does not rule out the possibility of economic pressure on the company.