CFR: The proposal to transfer the metallurgists of scrap in the Class 1 rate will lead of about 4.5 billion rubles of losses in year

Written by admin on July 24th, 2009

Proposal to relocate metallurgists scrap a third of the tariff in the first class rail carriage with the President of Russian Railways Vladimir Yakunin evaluated as inappropriate, according to a press release of the company.

July 24 in Magnitogorsk, President of OAO Russian Railways,Vladimir Yakunin has participated in a meeting on development of steel industry under the chairmanship of the Government of the Russian Federation Vladimir Putin.

The translation of the cargo in the first tariff class, ie to the rate at which the transport of reducing factors, differentiated by distance, would entail the loss of OJSC Russian Railways of up to 4.5 billion rubles a year (based the amount of 2009 in prices in July 2009). To compensate for falling revenues will require an increase in the index, applied to the rates of tariff price list № 10-01 on transportation of all goods in the order of 1.42% , - stressed Vladimir Yakunin.

According to the President of Russian Railways, in conjunction with this change provided the parameters indexing rail freight rates would increase the tariff burden on the economy and the general parameters of the socio-economic development. In addition, the increase in tariffs will affect the index in the metallurgical industry in the delivery of raw materials and the realization of finished products.

The implementation of this proposal is not compensation for falling income of JSC Russian Railways will lead to a reduction in capital repair of more than 1 400 km of track, which means - to reduce the procurement of about 255 thousand tons of steel products, - said Vladimir Yakunin.

The President of Russian Railways said that the implementation of proposals to change the tariff-class carriage at the scrap metal value of the ultimate rail steel products would decline by only 0.8%. Thus, according to the company, economic feasibility of the proposal is not clear even to themselves metallurgists, not to mention the Russian Railways and the economy as a whole.
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