Russian Railways supports balancing tariffs as transport component in price of goods changes
Oleg Belozerov, the Chief Executive Officer and Chairman of the Board of Russian Railways, has spoken at the session "How to Bring the Far East Closer: Ways to Reduce Transport Costs," which was held at the Eastern Economic Forum.
In his address, Belozerov highlighted some problems and put forward some solutions. During the year, the cost of coal on world markets has doubled, which has resulted in increased loading volumes as producers take advantage of the higher prices – but Russian Railways continues to suffer losses on its transportation service. The Company therefore advocates a commercially justified change in the tariff to be compensated with a reduction in the cost of transporting other goods.
According to Belozerov, the proportion of the railway tariff in the export price of thermal coal has decreased over the year from 20% to 7.5%. At the same time, the Company continues to see strong growth of its traffic continues in all directions.
"The current situation forces us acknowledge that tariff decisions should be changed. Taking into account the cross-subsidisation of various types of cargo, it makes sense to raise the tariff for the most unprofitable freight and reduce it for the highly profitable, thereby creating the right conditions for the increased transportation of goods produced by small and medium-sized businesses," said Belozerov.
Belozerov also stressed that if a balanced tariff is achieved, Russian Railways would be able to attract additional cargo volumes, and in addition the Company would have sufficient investment resources for the further development of the railways, including within the framework of the promising third stage of their development in Eastern Russia.