On January 8, the national company KTZ submitted an application to change the maximum index to tariffs for regulated services of the mainline railway network (MGS) in certain directions for 2024–2025. This is despite the fact that since the beginning of the year the company has already increased the tariff for mainline railway network services by 5%. Additionally, KTZ-Freight Transportation LLP submitted an application to increase the tariff for locomotive traction services by 35%. This was reported to the Atameken National Chamber of Entrepreneurs.
The Chamber of Entrepreneurs noted that in 2023, railway tariffs for cargo transportation increased three times: for intercity transportation services - by 5% from January 1, 2023 and by 28.4% from April 27, 2023, for locomotive traction services - by 11.4 % from November 6, 2023.
“In order to cover the debts accumulated by KTZ in previous years, an increase in price limits for regulated services of the main railway network (increasing coefficients to the approved tariffs) for export transportation, as well as empty runs of cars “from unloading to loading”, following on stations of the Republic of Kazakhstan through border crossings and sea ports of the Republic of Kazakhstan - by 3.89 times in 2024, and by 4.42 times in 2025,” Atameken reported.
Director of the Department of Agro-Industrial Complex of NCE Atameken Erken Naurzbekov emphasized that last year was already extremely difficult for agriculture. And the increase in KTZ tariffs, coupled with the provision of preferential tariffs to individual countries for the transit of similar products through the territory of Kazakhstan, will lead to higher prices for Kazakh products in the markets of neighboring countries and will make them even more uncompetitive.
According to the President of the National Association of Oilseed Processors Yadykar Ibragimov, increasing export tariffs could lead to the bankruptcy of a number of oil plants in Kazakhstan.
“The domestic market of Kazakhstan is limited. Therefore, we mostly ship our products for export and compete with suppliers from the Russian Federation. One of the indicators of competitiveness is the cost of transporting goods by rail. Accordingly, if, due to an increase in the price limit on tariffs for intercity transportation services, the cost of transporting goods in the export direction increases, and unreasonably, we will simply exit the market. Creameries will be forced to stop their work. If we take into account the low demand in the domestic market for oil and fat products, most of the processing enterprises will go bankrupt,” Ibragimov said.
Atameken also reported that in December 2023, the Ministry of National Economy expanded the list of purposes for applying price limits for regulated MHS services: “receiving income to repay the principal debt on attracted credit resources for the implementation of measures aimed at expansion, modernization, reconstruction, renewal existing assets, creation of new assets directly used in the technological cycle of providing regulated services, ensuring energy saving and increasing energy efficiency and improving the quality of provided regulated services that are not included in the tariff.”
According to the approved tariff estimate, KTZ’s income from regulated MHC services in all communications in 2024 is provided in the amount of 505 billion tenge. Through the application of price limits, KTZ intends to receive an additional 396 billion tenge.