The reform of railway transport in Ukraine, which includes stripping Ukrzaliznytsia of its monopoly status, will open up new opportunities for the development of a competitive market and a significant reduction in tariffs for freight transportation. The President of the Ukrainian Agrarian Confederation, Leonid Kozachenko, commenting on the initiative of Ukrzaliznytsia regarding the harmonization of tariffs, expressed his opinion about the need for such changes.
Kozachenko emphasized that the state should retain a monopoly only on the central, main line of railways, while access tracks and transportation should be transferred to private hands. This approach, according to the expert, will allow to significantly reduce tariffs for freight transportation. "If this market were open to private companies, the tariffs themselves would drop by at least 30%, and in some areas by 50%," Kozachenko noted.
He also emphasized that the European Union has long been waiting for this reform from Ukraine. In the EU, according to him, 308 companies have licenses for railway transportation of both passengers and cargo, while none of them are state-owned. On the other hand, a monopoly is preserved in Ukraine, which restrains the development of competition and prevents the reduction of tariffs.
Kozachenko reminded that over the last ten years it was possible with great difficulty to introduce changes in the legislation that allowed the use of private carriages on the railways. However, the next step should be to grant the right to private companies to use their own traction, which will be a key factor for the development of competition in the market.
Earlier, the head of "Ukrzaliznytsia" Yevhen Lyashchenko announced another increase in tariffs for freight rail transportation, despite the fact that the company has already recorded a profit of UAH 3.1 billion. However, the Association of Mining Enterprises (NADPU) warned that such an increase could negatively affect the country's defense capabilities.
A reduction in transportation tariffs can become an effective tool for stimulating Ukraine's economy. According to Kozachenko, the profitability of freight transportation has already reached 27%, and in order to ensure further growth of the economy and business support, it is necessary to create conditions for the development of competition on the railway market.
