{"id":267310,"date":"2025-08-15T18:45:52","date_gmt":"2025-08-15T08:45:52","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=65125"},"modified":"2025-08-15T18:45:52","modified_gmt":"2025-08-15T08:45:52","slug":"ktz-plans-rail-freight-tariff-increases-by-nearly-5-times","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=267310","title":{"rendered":"KTZ plans rail freight tariff increases by nearly 5 times"},"content":{"rendered":"

Kazakh Railways (KTZ) has proposed a redesign of its tariff policies. It hopes to abolish tariff differentiation by freight type, aligning all tariffs with the highest (most expensive) category, oil. The proposal has raised concerns among businesses.<\/strong>
\n<\/span>By 2030, tariffs could grow by up to 4,8 times, in particular for coal transportation. Grain would come in second place, with an effective tariff hike of 4,2 times the current price.<\/p>\n

Kazakhstan\u2019s National Chamber of Entrepreneurs, Atameken, has criticised the tariff reform process as non-transparent and dominated by KTZ\u2019s monopoly position, with business proposals largely ignored. Atameken has urged the government to shift responsibility for tariff development to the Ministry of National Economy, limit tariff growth to inflation rates, preserve freight-type differentiation, and set the maximum tariff indexation at 1.<\/p>\n

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KTZ’s proposed mainline tariff changes (multiples of current prices):<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n
Commodity<\/th>\n2026<\/th>\n2030<\/th>\n<\/tr>\n<\/thead>\n
Coal<\/td>\n3.5\u00d7<\/td>\n4.8\u00d7<\/td>\n<\/tr>\n
Grain<\/td>\n3.1\u00d7<\/td>\n4.2\u00d7<\/td>\n<\/tr>\n
Non-ferrous ore<\/td>\n2.5\u00d7<\/td>\n3.3\u00d7<\/td>\n<\/tr>\n
Chemicals, soda, chemical mineral fertilisers<\/td>\n2.3\u00d7<\/td>\n3.0\u00d7<\/td>\n<\/tr>\n
Iron ore<\/td>\n2.7\u00d7<\/td>\n3.7\u00d7<\/td>\n<\/tr>\n
Liquefied gas (LPG)<\/td>\n2.0\u00d7<\/td>\n2.7\u00d7<\/td>\n<\/tr>\n
Empty run (empty haul)<\/td>\n1.9\u00d7<\/td>\n2.5\u00d7<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

On the verge of bankruptcy<\/h2>\n

KTZ has recently reported strong financial performances, with net profit growing from 16 to 158 billion tenge (2020\u20132024). That is largely attributable due to a 2.5-fold increase in freight tariffs over the past five years. However, that does not immediately mean that the company is financially healthy.<\/p>\n

An official of Kazakhstan\u2019s audit chamber explained in June 2024 that KTZ was close to bankruptcy. Reportedly, the company transported 73% 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

\u201cToday, KTZ is not capable of paying its dues. The company is in the red zone of financial risk\u201d, he added. As of summer 2024, it had a debt of 5,8 billion euros, of which 45 per cent was used to pay off debt that the company took on earlier.<\/p>\n

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To improve the country\u2019s rail freight market, Kazakhstan is likely to allow private rail freight operators<\/strong> on its mainline network in the future.<\/p>\n