The Ukrzaliznytsia public railway company (PJSC Ukrzaliznytsia) raised its freight rates by 15% on 30 April.
"The company will earn an additional UAH 100 million thanks to this timely increase of freight transport rates, but it would not have earned this amount if the rate increase had entered into force on 4-5 May because Ukrzaliznytsia loses UAH 25-27 million per day," Ukrzaliznytsia said.
As reported, Minister of Infrastructure Volodymyr Omelian said on 19 April that increase of freight transport rates by 15% from May had not been approved because of changes in the Cabinet of Ministers.
Previously, Ukrzaliznytsia to increase its freight transport rates by 30% in two stages in 2016: by 15% on 1 January 2016 and by a further 15% on 1 July 2016.
The Cabinet of Ministers approved Ukrzaliznytsia’s financial plan on 2 March. The plan provides for increasing freight rates by an annual average of 10%. The rate increase was scheduled for 1 May. The financial plan does not provide for raising passenger transport rates, apart from a 5% increase in passenger transport rates for first-class cars on Intercity+ high-speed trains and increase of profits by upgrading the classes and improving the services on some trains.
Ukrzaliznytsia is projected to make a net profit of UAH 96.8 million on a net revenue of UAH 74.41 billion this year. It plans to spend UAH 11.19 billion on capital investment.