March 18 2005, 11:14 SeaNews

Ukraine's railway tariffs strangle ferry operations between Ukraine and Turkey

SeaNews Agency has reported information from Shipowners' Association of Ukraine that rail ferry operations between Ukraine and Turkey (port of Iliychevsk - port of Derinje) have nearly stopped. According to the agency, the freights from Russia, Kazakhstan, the countries of Central and Eastern Europe, comprising the core of transit workload of the ferry link, have been re-oriented onto other means of transport.

The agency informs that this situation has been a consequence of tariff policy of Ukrainian railway department (Ukrzaliznytsia), resulting in a sharp growth of the clients' expenditures. The main reason for refusal of the clients from using the services was a sharp increase of Ukrzaliznytsia's tariff for usage of cars (eightfold growth only within 2004); in particular, the charge for usage of Ukrzaliznytsia's refrigerator cars increased more than 8 times. Protests of the load owners have been also inspired by increased tariffs far cars demurrage at the port railway station and introduction of fee for cars demurrage at ferry facilities. The situation has been aggravated by cancellation of discounts in port service charges by Ukraine's transport authorities.

With a view of this situation, International Association of Forwarders of Ukraine and the Association "Ukrvneshtrans" (embracing operators of international transport services) directed a protest letter to the Ministry of Transport and Communications of Ukraine. The Bulgarian and Georgian participants of Black Sea rail ferry services have added up their voices to the letter of protest. According to opinion of the protesters, this abnormal situation has resulted from monopolistic attitude of Ukrainian railway department, which poses a threat of pushing Ukraine away from the market sector of transit rail ferry operations.