A state railroad company might reduce the tariff for freight transportation to compete with road carriers.

Serhiy Vovk, director of the Center for Transport Strategies, stated: “The 70% tariff increase in July 2022 was a forced measure that helped stabilize the financial condition of Ukrainian Railways (UZ) against the background of a critical drop in freight flows under the influence of the war. But we see now that export cargo flows are reaching pre-war levels, and the state company is improving its financial situation”.

According to Vovk, the company expects a further increase in cargo flow, particularly agricultural products, which will also positively affect its financial condition. Therefore, it is worth thinking about further reducing freight rates to expand the client base.

“Given the situation in motor transport, Ukrainian Railways now would consider options for reducing tariffs – as they did with shipments of agricultural goods from the frontline territories. This would help to stimulate cargo flow and win back some market share from road transport,” Vovk emphasized.