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Home Coal Production

RZD plans to increase empty mileage tariff imports in 2021

Editor by Editor
2 years ago
min read1 min
Russian coal
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RZD plans to introduce measures to compensate for the shortfall in revenues in 2020, revising its tariffs in 2021. The company proposes indexation of prices for empty mileage of railcars by 15.8% and reduction of tariff for loaded mileage of railcars by 0.1%. According to RZD estimates, as a result company will earn additionally 7.5 bn RUR (95 mio USD). The introduction of new tariffs may hit businesses of many coal companies from Kuzbass and Novosibirsk region.

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The grounds to introduce these measures are low profitability of empty railcars transportation and financial losses of thermal coal railway supplies mainly to the Far East. However, the first Deputy Prime Minister Andrey Belousov did not accept the proposals of RZD and returned the draft project of measures for revision.

The latest proposals of RZD suggested either an increase in the overall tariff by 3.7%, or its differentiation: a decrease of 0.1% in tariff for loaded railcar mileage and an increase of 15.8% for empty mileage. Market participants criticized the initiative, pointing out that further increase in tariffs may lead to a reduction in traffic volumes.

More than that, they criticized the way RZD plugs its shortage of funds for its investment program at the expense of exporters, and advised the company to prioritize its investment objectives. Also from October 2020, RZD canceled 12.8% rail tariff discount, applied to coal transportation to Russian ports in the North-West.

Source: CAA Analytics

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