The national company KTZ presented a Roadmap for the development of a new tariff policy for the services of mainline railway networks (MRS). The document, which was developed in collaboration with consultants from the PWC corporation, proposes to abandon the differentiation of tariffs by type of cargo. At the presentation of the Roadmap held at NPP Atameken, industry unions opposed this item, as this entails a multiple increase in tariffs for a number of goods.
“In world practice, differentiated pricing by type of cargo is used in any market model. The railway tariff always depends on effective demand. Expensive (finished products) and cheap (raw materials) goods are never transported at the same rates. In Kazakhstan, railway transport is a critical component of the production infrastructure. In the absence of access to the sea and insufficient development of roads, tariffs for rail freight transportation have a decisive impact on the competitiveness of not only industries, but also the economy as a whole,” stated the Atameken NCE.
The NPP emphasized that the destruction of the tariff structure (under which tariffs for the transportation of bulk cargo will increase significantly) will lead to a loss of competitiveness of Kazakh producers, especially in a difficult geopolitical situation.
This will significantly weaken the position of Kazakh exporters in the world market and discriminate against them in comparison with producers of other EAEU states. In all countries of the EAEU and countries neighboring the Republic of Kazakhstan, there is differentiation of tariffs by type of cargo.
“The NPP expresses the consolidated position of the manufacturing industry, the mining and metallurgical complex and the agro-industrial complex against the abolition of tariff differentiation by type of cargo. If tariff differentiation is cancelled, there are significant risks of a multiple increase in the cost of transporting export products, which will jeopardize the stability of the domestic economy and lead to extremely negative social consequences,” Atameken said.
The NPP also reported that KTZ indicated the urgent need to develop a new price list for MHL services, according to which transportation will be carried out in domestic and export traffic without taking into account transit traffic, and the development of the infrastructure of the MHL network will be ensured at the expense of domestic shippers.
At the same time, according to the Ministry of Transport of the Republic of Kazakhstan, at the end of 2023, the volume of transit transportation by rail in Kazakhstan increased by almost 20%, which puts an additional burden on the transport infrastructure of the Ministry of Railways. Therefore, approaches to the formation of a new tariff methodology should take into account the transit potential of the national operator, which is currently deregulated and occupies a significant and sustainable share in the profitability of KTZ.
“The business community expressed a unanimous opinion that the key methodological issue is that the income of NC KTZ JSC, as a single entity, for MHC services should be formed according to the “single cash desk” principle, according to the recommendations of the World Bank, taking into account all components railway transportation,” Atameken reported.
Earlier, the Chairman of the Supreme Audit Chamber, Alikhan Smailov, spoke about the difficult financial situation of KTZ and the risk of default.