UDS appealed to the Cabinet of Ministers due to the increase in Ukrzaliznytsia’s tariff
23.12.2024 - 12:22
Ukrzaliznytsia has planned to increase the tariff by almost 40%, which may cause the work of the UDS fleet in the direction of Constanta to stop.
This was reported by the Ukrainian Danube Shipping Company.
Deputy General Director of UDS Vladyslav Belakh said that today UDS transports Ukrainian agricultural products to the seaport of Constanta. The volumes are small, but the company is working to increase them.
“We have repeatedly appealed to the Cabinet of Ministers with proposals to introduce a discount on the Ukrzaliznytsia tariff to Izmail in order to at least partially compensate for the difference in the cost of delivery to Odesa. The planned increase in the Ukrzaliznytsia tariff will increase the cost of logistics per ton of grain through Danube ports by about five dollars and will put Danube in an even more disadvantageous position compared to Odesa. The work of the fleet in the direction of Constanta will simply stop,” he explained.
UDP proposes to keep the current tariffs of Ukrzaliznytsia to Izmail unchanged. This guarantees Ukraine the preservation of Danube logistics as an alternative export channel.
“We appeal to the leadership of the Ministry and the Cabinet of Ministers. Keep the tariff for railway transportation to Izmail unchanged. The war continues, military risks are relevant. If exports from Odesa, as in 2022-2023, are under threat, we will have to spend time resuscitating Danube logistics. Business will again face sky-high rates and a fleet deficit. If we are heard and supported, UDS will receive a guaranteed monthly cargo flow of 150-200 thousand tons (1.2-1.5 million tons per year) and will be able to ensure exports, both in the case of a blockade of seaports and the western border. In addition, we are ready to offer Ukrzaliznytsia reverse loading in Izmail at the expense of coal imports,” Vladyslav Belakh noted.
As previously reported by USM, in November of this year, the UDS announced a collapse in transportation along the Danube.
