EBA calls for reducing rail fare increases from 30% to 5–10%

Business proposes to limit the increase to 5-10% after open consultations, as a sharp increase in tariffs may reduce the cargo base and reduce exports.
EBA appealed to the Ministry of Community and Territorial Development with an appeal to reconsider the proposed increase in tariffs for freight rail transportation by 30%. This was reported on the Association’s website.
Member companies of the Association’s Logistics Committee believe that the economic justification for the initiative requires additional analysis. According to their statement, the potential negative consequences for the economy may exceed the additional revenues that Ukrzaliznytsia is counting on.
According to the assessment of the State Enterprise Ukrpromzovneshexpertiza, a sharp increase in transportation costs may lead to a reduction in the cargo base, a decrease in the competitiveness of Ukrainian manufacturers, a decrease in production and export volumes, as well as budget revenues. Paradoxically, UZ itself may also suffer – due to a further drop in transportation volumes.
The EBA emphasizes that the carrier’s financial sustainability problems are systemic. According to estimates by EBA member companies, in 2023–2024, the cargo segment generated about UAH 20 billion in operating profit annually – that is, losses are formed elsewhere.
Among the key problems are the chronic unprofitability of passenger transportation, insufficient state funding of the public social obligations (PSO) mechanism, and the maintenance of a significant part of economically unprofitable infrastructure.
The association calls for limiting itself to a moderate increase of 5–10% after open consultations with business, ensuring full state funding of passenger transportation within the framework of PSO, and continuing to optimize the costs of UZ.
Financial stabilization, according to business, should be based on systemic reforms, and not on increasing the tariff burden on shippers – especially in conditions of war, reduced industrial production, and a difficult logistical situation.
Recently, USM wrote that Ukrzaliznytsia has increased grain transportation by almost 18% since the beginning of the year.
