Business

Ukrzaliznytsia has increased tariff distances to ports. Businesses opposed

The European Business Association calls for a reconsideration of Ukrzaliznytsia’s decision to change tariff distances between transit points in the direction of the Chornomorsk and Odesa Port commercial seaports and to focus on the shortest routes when charging for rail transportation. This is stated in a statement by the Association, "Komersant Ukrainian" reports.

Business representatives emphasized that the decision to change tariff distances in the direction of the Chornomorsk port terminals, adopted in January 2025, has already led to a significant increase in transportation costs: up to about USD 2-4.5 per ton. At the same time, in April, changes were made to the tariff distance in the direction of the Odesa Port station.

ArcelorMittal Kryvyi Rih called the decision artificial and unreasonable

The country’s largest mining and metallurgical enterprise is extremely concerned about the change by Ukrzaliznytsia JSC on April 5, 2025, in the plan for forming trains heading to the Odesa Commercial Sea Port.

As noted in the company’s statement, as a result of these changes, the tariff distance for trains carrying the company’s products was increased by 257 km, and the cost of production also increased significantly.

As Ukrzaliznytsia explains its decision

In its response to the EP’s information request, Ukrzaliznytsia JSC noted that the decision to change the train formation plan was made to ensure an even distribution of car traffic on the Pomichna-Podilsk and Pomichna-Chornomorsk sections, as well as to ensure the stable operation of traction substations and the rational use of locomotives, as well as to prevent overtime work of locomotive crews.

Ukrzaliznytsia said in a statement that restrictions on the interval of train passage and power supply are in place on the routes in question.

In addition, the decision was made taking into account the existing and potential car traffic in the direction of the largest port, Pivdennyi.

What’s next

The business community is, of course, diplomatically expressing its hope for an objective review of Ukrzaliznytsia’s decision and is also calling more categorically for the abolition of the introduced changes in tariff distances.

However, ArcelorMittal Kryvyi Rih’s statement also sounded more harsh. They consider any manifestations of abuse of monopoly position unacceptable and express their readiness to appeal to the Antimonopoly Committee of Ukraine on this issue.

The European Business Association also reminds that a new draft law regulating the functioning of the railway transport market is currently being worked on. And according to the business, it is extremely important to provide incentives for transportation on the shortest routes. In addition, it should provide for mechanisms to prevent unproductive use of infrastructure capacity and prompt redistribution of unused capacity.