2024-12-27 | Source: Logistics Baba
Ukrainian Railways (UR) has announced a proposed 37% tariff increase, driven by rising maintenance costs after three years of war. The national operator has struggled with insufficient resources due to a lack of annual tariff indexation in recent years, as mandated by government policy.
UR Chairman Gephard Hafer emphasized the importance of this adjustment: “Indexing freight tariffs is crucial for stable operations and maintaining safety standards. The calculated increase aims to cover operating expenses and fund critical infrastructure repairs.”
UR highlighted challenges such as skyrocketing energy and locomotive spare part costs—up by 217%—and the strain of maintaining service under daily shelling. The blockade of Ukraine’s grain corridor by Russia has further increased reliance on rail for container transport.
A source noted Ukraine’s dependence on its extensive railway network but warned of a key weakness in expanding trade with Western neighbors: mismatched rail gauges. Suggestions have included replacing old Soviet-era tracks and seeking external investment.
Estonia Eyes Growth in Rail Transport
Meanwhile, Estonia is addressing the impact of Russia’s war against Ukraine by privatizing its former state operator Operail. The company was sold for €19 million, and its new owner, Tiigi Keskus, aims to boost container transport.
Infrastructure Minister Vladimir Svet explained, “Freight volumes on Estonian railways dropped sharply since Russia’s aggression. We aim to focus on national defense while transitioning rail responsibilities to private operators.”
Richard Tomingas, a Tiigi Keskus board member, stated, “We plan to expand container transport and further develop Estonia’s rail sector to align with national climate goals.”
UK Sees Intermodal Freight Growth
In the UK, efforts to promote rail freight services are paying off. In Q3 2024, intermodal shipping volumes rose 4% year-over-year to 1.6 billion net tonne-kilometers, while non-maritime freight increased 11% to 197 million net tonne-kilometers.
The Office of Rail and Road highlighted Dubai Ports World’s (DP World) success in encouraging shippers to use rail services, increasing Southampton’s rail freight market share. New services, like the Tilbury-Manchester route, also contributed to the growth.
Rail accounted for 38% of all freight in July-September 2024, reaffirming its importance in reducing road congestion and achieving climate goals.
China Top Forwarder Disclaimer: This article was sourced from external media. Its content is for informational purposes only and does not constitute investment advice.