Ukraine: The price of transportation by rail will increase by at least 20%

According to the sugar factories, once Ukrzaliznytsia introduces market mechanisms, the cost of transportation by rail will grow by about 20-25%.

Such information was provided by the press service of «Ukrtsukor».

According to analysts, this increase in prices can be explained by the difference in the rates for renting own and private hoppers. It means that if the price for hoppers of Ukrzaliznytsia becomes the same as for private hoppers, this difference in price will affect the transport rates, namely, one should expect an increase by at least 20% of today’s price.

One of the main users of hoppers, owned by «Ukrzaliznytsia» are sugar factories. Therefore, as soon as these changes are introduced, an increase in the cost of sugar should be expected.

The increase in transportation rates will be not only for sugar industry, but also any other industries that transport raw materials and products by means of hoppers owned by Ukrzaliznytsia.

The price of rail transportation in Ukraine will increase by at least 20%. This is due to a change in the tariffs for cargo transportation, which are set by the state regulator. This is expected to affect the cost of transporting goods and increase costs for businesses.

According to experts, an increase in the price of rail transportation will have a negative impact on the competitiveness of Ukrainian goods on world markets. This may also lead to a decrease in the volume of cargo transportation and a deterioration in the economic situation in the country.

However, there is an opinion that the increase in the price of transportation can be justified if it helps to improve the quality of services and upgrade the railway infrastructure in Ukraine. What will be the consequences of this decision and how it will affect the country’s economy, one can only guess.