KTZ Seeks to Gradually Raise Grain Transport Tariffs After Reporting Loss

The national railway company Kazakhstan Temir Joly (KTZ) has acknowledged transporting grain at a loss, stating that the current tariff covers only half of the actual costs. Losses for last year alone amounted to ₸44 billion, Orda.kz reports.

According to APK News, this was announced by Dair Kusherov, KTZ Managing Director for Finance, during a meeting of the Majilis Committee on Agrarian Issues.

Kusherov explained that, under a state commission decision, tariffs are set to increase by 24% annually between 2024 and 2026. Despite this adjustment, grain transport remains unprofitable, as the actual cost is roughly double the current rate.

Compared to the CIS countries, we have the lowest tariff. For example, when we transport Kazakh grain across our territory — 2,100 kilometers to Saryagash — we currently pay around $12. But across Uzbek territory — 882 kilometers to Galaba — the tariff is $26. If you convert it to ton-kilometers, the difference with Uzbek tariffs is essentially six times smaller. That is, they don’t even lower prices for their own consumers to export our grain,
 explained a representative of the national company.

We submitted an application to the Committee for the Regulation of Natural Monopolies (CRNM) for five years. From now on, we’ll probably follow the inflation rate. Overall, our main goal is to gradually reach cost price by 2030. Some market participants are concerned that we’re planning to immediately double the rate next year. That won’t happen,
 said Kusherov.

Original Author: Alina Pak