A new legislation regarding the increasing of transportation price by 15% was issued

A new legislation regarding the increasing of transportation price by 15% was issued

A new legislation regarding the increase in transportation price by 15% was issued on October 31. Such an information appeared on the website of “Ukrzaliznytsia”.

There was also noted that such an increase in prices is nothing but a compromise that was achieved during long negotiations between the representative of “Ukrzaliznytsia” and the participants of the freight transportation market. The income from the introduction of new prices is planned to be used for re-equipment, construction and purchase of new railway cars, as well as the development of transport infrastructure. In the rolling stock renovation program 2021, the amount of money allotted for these purposes is 108 billion UAH. This is a large amount of money that industry has not had for a long time, but which will help improve its work, increase freight volumes and stabilize the country’s economy.

There is also noted that transportation prices have not been changed since April 2016, and in 2017 the increase in price will be only 2.5%.

The new prices for cargo transportation in Ukraine came into force after Ukrzaliznytsia published an order to increase tariffs by 15%. This decision was made in connection with the growing economic costs of maintaining freight traffic and rail transport infrastructure. The increase in prices will affect not only domestic, but also foreign cargo owners who use rail transport to deliver their goods.

Ukrzaliznytsia argues that the new tariffs are necessary to ensure the sustainability and development of rail transport in Ukraine. In addition, the company notes that its fares remain competitive with other rail operators in the region.

While an increase in freight prices could hurt business, many experts believe it is an inevitable move in the face of rising freight costs. It is important to note that rail transport remains one of the most environmentally friendly and safe modes of transport, which makes it an indispensable element in modern logistics.