You're reading: Ukrzaliznytsia in Jan-Oct sees Hr 30 billion in income from cargo shipments

The State Railway Administration of Ukraine (Ukrzaliznytsia) in January-October 2012 saw UAH 30.104 billion in income from cargo shipments by rail, the head of the commercial department at Ukrzaliznytsia, Yuriy Merkulov, said in Kyiv on Wednesday. 

He said that the funds are used to cover losses from passenger transportation, realize investment programs and repair rolling stock and the infrastructure of the railways – mainly the maintenance of track, locomotives and freight cars.

Merkulov also said that Ukrzaliznytsia requires around UAH 30 billion in investment every year, and in particular, some UAH 6 billion to upgrade the fleet of freight cars through buying around 8,000 of them.

As reported, Ukrzaliznytsia said that its revenues target for January-October 2012 was not fulfilled due to a reduction in cargo shipments and the absence of cargo tariff indexation.

With expected revenues from usual operations of UAH 46.5 billion in the 10 months ending October 31, 2012, the under-fulfillment of the revenues target will be UAH 1.7 billion.

The non-fulfillment of the target is linked to a fall in cargo turnover of UAH 1.4 billion due to a reduction in transit cargo shipments by UAH 800 million, and a decline in the revenue rate by UAH 300 million, in turn due to a cut in the loading of high-value cargo – including those of fuel, shipments of which over the 10 months were down by 35%, to 5.6 million tonnes, those of metals – by 6.7%, to 23.8 million tonnes, and those of ore – by 2.8%, to 60.4 million tonnes.

Ukrzaliznytsia’s expenses over the period will reach UAH 46 billion.

In particular, expenses on materials will grow by 23.6% year-over-year, to UAH 974.8 million, those on electricity – by 15.5%, to UAH 521.1 million, fuel – by 7.9%, to UAH 283 million and wages – by 13.65, to UAH 2.031 billion.