Contract of Railways for freight transport services needs to be expanded – EBA

Договор Укрзализныци на грузовые перевозки нуждается в доработке - ЕБА

The European business Association (EBA) believe that JSC “Ukrzaliznytsya” to finalize a new contract for the transportation of cargo, which should enter into force on 1 July 2020.

“From 1 July 2020 “Ukrzaliznytsya” plans to implement the updated agreement on the provision of services for the carriage of goods by rail, a version of which was published on 31 may on the website of the Ministry. The Association is grateful for the number of significant observations, at the same time, we would like to draw attention to some issues that require further development”, – stated in the message.

First of all, we are talking about the method of charging fees for the use of private cars to Railways. Now fee is calculated on a progressive rate scale depending on the number of hours of use of the car. In the new contract proposes to calculate the fee for using cars during the day. Experts estimate that the EBA, such innovation can increase costs shippers more than 6-7 times or 30-40 UAH per ton. So the Association proposes to leave the current procedure of payment for the use of the wagons of Ukrainian Railways.

The experts from EBA will also continue to insist on the exclusion of the value of “Tdad” of the paid time of use of cars. Ratio Tdod is an additional one day to the delivery time of goods necessary for the formation of freight trains and registration of accompanying documents. In practice, the application of the “TDD” means two extra days for use of own car carrier (trucks and empty flights).

On belief of experts of the logistics Committee of the EBA, its advisable to Supplement the Treaty provisions establishing the liability of the carrier for damage to the cars of the customer, to balance the limits of liability of the customer and the carrier. Other comments relate to business sizes and conditions, penalties, ability to withdraw funds from the personal account of the payer, the list of primary documents, etc.

“Business hopes for a speedy processing of comments, together with experts from the Railways and renewing the current agreement until the development edition, which will take into account the interests of all participants of cargo transportation market,” – added to the Association.

As reported, Ukrzaliznytsia on may 31 issued a new contract for the carriage of goods, which will be introduced from 1 July. The company noted that the new agreement was finalized in close cooperation with business representatives and their associations, as well as the concerned public authorities.

At the end of February Ukrzaliznytsia has released the first draft agreement on organization of cargo transportation. He had to earn from April 1. However, due to the complaints of business, and quarantine, UZ postponed the introduction of its action to account for the observations.

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