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Home Coal Demand

RZD tariffs to rise by more than 10% in 2024

Editor by Editor
2 months ago
Reading Time: 1 min read
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Russian Railways (RZD) plans to adjust railroad tariffs for inflation by 10.75% in 2024. This figure includes the base indexation of 7.6%, as well as 2% for infrastructure overhaul and 1% surcharge for transportation security.

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It is expected that in 2024 the indexation of 10.75% will bring RZD with 2 billion USD of additional funds. At the same time, the investment program in 2024 is estimated at 13 billion USD, of which 98.9 mio USD will be allocated for design and survey work under the third stage of modernization of the Baikal-Amur Mainline and Trans-Siberian Railway.

Market participants have already expressed concerns about further increase in the cost of transportation, believing that expenses such as transport safety should be covered by the government, given the already rapid growth of tariffs, which is noticeably higher than the figures stipulated in the long-term development program of RZD (inflation minus 0.1%).

In 2022, indexation amounted to 18.6% as compared to 2021. In addition, there were specific tariff increases, as well as removal of incentives for coal exports. In 2023, the tariff was increased by 8% plus an additional 1% for overhaul, the removal of incentives for coal exports was extended further, and the tariff for long-distance transportation of mineral and iron ore for export through border crossings was increased.

In 2025, the base indexation of railway freight transportation tariffs is planned at 5.2% plus a 2% surcharge for transportation security.

Source: CAA

Argus coal


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Tags: CAA Analysiscoal pricesglobal coal demandRussian coal productionworld coal market
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