{"id":194964,"date":"2025-04-03T18:56:39","date_gmt":"2025-04-03T08:56:39","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=61309"},"modified":"2025-04-03T18:56:39","modified_gmt":"2025-04-03T08:56:39","slug":"barely-a-month-after-tariff-hike-ktz-asks-for-more","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=194964","title":{"rendered":"Barely a month after tariff hike, KTZ asks for more"},"content":{"rendered":"

New, higher tariff rates went into effect in Kazakhstan on 7 March. Kazakh Railways (KTZ) has long been asking for higher fees because it needs the money for infrastructure projects. But some three weeks after the implementation of the new tariffs, KTZ is already asking for more.<\/strong>
\n<\/span>And the company is not asking for very little. It is proposing an average tariff increase of 48 per cent, with higher fees in particular segments. Those include empty wagons (an increase of 95 per cent) and bulk freight, such as coal, grain and ores (66 per cent). The hike would come on top of a total increase of 92 per cent that took place over the past four years.<\/p>\n

KTZ\u2019s request is remarkable due to its timing. The latest tariffs, implemented as recently as three and a half weeks ago, are supposed to remain in force until the end of 2025. \u201cKTZ explains the unplanned tariff hike through the need for extra resources for the realisation of the revised investment programme\u201d, says rail freight transporters\u2019 association ARFC. The programme includes vital infrastructure works, such as the Almaty bypass and the Darbaza – Maktaaral line.<\/p>\n

Financial problems<\/h2>\n

It stands to be noted that KTZ is in a precarious financial situation. According to a statement of an official of Kazakhstan\u2019s audit chamber in the summer of 2024, KTZ is close to bankruptcy. They said that the company transported 73 per cent of all freight for fees below the cost price. \u201cThere is no common economic sense in this. Not a single entrepreneur is interested in executing their activities on the basis of charity\u201d, the official commented.<\/p>\n

As of last year, KTZ had a debt of 5,8 billion euros, of which it used 45 per cent to pay off debt that the company took on earlier.<\/p>\n

Harsh criticism<\/h2>\n

Much remains unknown about KTZ\u2019s proposal, including if Kazakhstan will go ahead with its implementation or not. ARFC laments the opacity of decision-making. The operator\u2019s proposal was made during a closed meeting with Kazakhstan\u2019s monopoly regulating body. \u201cUnfortunately, yesterday’s discussion of the new tariff increase took place, as usual, in an atmosphere of obvious and unconcealed loyalty of the state body towards the monopolist [KTZ]\u201d, the association says.<\/p>\n

ARFC calls the attitude of Kazakhstan\u2019s authorities to rail transport market participants \u201coutrageous\u201d. Earlier this week, it claimed that KTZ is ignoring priority rules by favouring its subsidiaries over private companies.<\/p>\n