First Quarter Was a Test: Ukrzaliznytsia Reports Large Losses
Regular enemy attacks, a reduction in transportation volumes, and a sharp jump in energy prices hit Ukrzaliznytsia in the first quarter of this year. As a result, a loss of about 7.9 billion hryvnias was recorded.
Why Did Ukrzaliznytsia Incur Large Losses?
The details of the losses were reported by the company on June 1.
- According to the information, the Russians carried out 541 strikes on railway infrastructure and rolling stock. This is roughly half the number of all attacks last year. As a result, 1,718 railway objects were damaged.
- In addition, 28 railway workers were injured while performing their duties, including drivers, track workers, power engineers, wagon attendants, and people of other professions.
All these factors negatively affected the results of Ukrzaliznytsia's work, as stated in the note.
But even under such challenges, tariffs for passengers were kept unchanged to maintain accessibility of transportation for everyone, as well as freight tariffs to support domestic enterprises and the entire economy during a difficult period,
– the text says.
The volume of freight transportation in the first quarter of this year decreased by 6.4% – to 34.8 million tons of cargo, compared to last year. This was influenced by Russian attacks as well as abnormal frosts.
Passenger transportation also underwent changes and decreased to 5.8 million passengers, which is 10% less than in the same period last year. In particular, this was also due to systematic enemy attacks on passenger trains and railway infrastructure.
Note! Do not forget about the rise in fuel prices against the backdrop of the conflict in the Middle East – the purchase price of diesel fuel in March increased by almost 50%.
As the company writes, electricity prices also jumped up. The cost of electricity increased by 52%. And for Ukrzaliznytsia, this brought additional expenses in the amount of 2.58 billion hryvnias.
At the same time, the company continues to work thanks to strict savings,
– the note says.
It is noted that for the second year in a row, railway workers' salaries have not been indexed. At the same time, previous increases were minimal.
Also, Ukrzaliznytsia is forced to maximize optimization of development and restoration costs. According to the information, the company is overfulfilling the operational efficiency program in the amount of more than 10.2 billion hryvnias.
Important! Now, for the first time, the state has begun to systematically compensate for the difference between the cost and tariffs for passenger transportation.
What Other News Is There About Ukrzaliznytsia?
Recall that during the full-scale invasion, Russia destroyed 46 passenger cars of the Ukrzaliznytsia company. Currently, 200 damaged cars need repair, as well as an entire Intercity+ train.
In connection with the situation, the company advises planning travel in advance. For example, they recommend buying tickets 20 days before departure. You can also use the auto-buyout function.
At the same time, the company introduced rules for ticket refunds. They took effect almost a month ago – on May 2.
Thus, the percentage of the ticket price subject to reimbursement in case of cancellation changes. For example, 15-20 days before departure, 100% of the amount is refunded. If 10-14 days, then 95-90% of the amount; 9-5 days – 75%; and 4-1 day – 50% of the amount. If the ticket is returned less than a day before, but no later than 1 hour after departure, only the cost of the reserved seat (platzkart) is compensated.
An important nuance: for military personnel who purchase tickets through the Army+ app, no restrictions are planned. That is, these individuals will be reimbursed 100% of the cost when returning a ticket before the scheduled departure of the train.
