Starting December 1, Uzbekistan will raise the cost of using domestic freight wagons operated by Uzbek Railways by 30%. This marks the third such increase in the Eurasian region, following similar moves in Russia and Kazakhstan. Earlier in 2024, Uzbekistan had already raised prices for international rail freight transportation.
Uzbek Railways attributes the price hike to rising costs associated with upgrading rolling stock and increased servicing expenses. A new regulation, implemented in January 2024, allows for market-driven pricing rather than the previously state-regulated freight rates. The operator states that these adjustments are necessary to maintain and improve the efficiency of the rail freight system.
This comes after a price increase in April 2024, which affected international freight traffic. The increase raised import freight rates by 25% and export traffic fees by 35%. During that time, demand for rail freight imports surged by 51% y/y. However, export demand dropped, particularly due to a 26% decline in exports to Russia, as banks expressed concerns over potential secondary sanctions.
Uzbekistan’s move follows similar tariff hikes in neighboring countries. Kazakhstan has been gradually increasing its rail freight tariffs since the spring, with government officials citing that 73% of all rail freight is being transported below cost price. Russia, too, will raise freight charges by 13.8% starting December 1.
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