It would be nice to live not caring about our neighbours’ tariff policies
26.08.2009 (15:47)
We are talking with the Deputy Director of the Russian Transport Ministry’s Department for State Policy in Railway Transport, Sergey Tugarinov, about the developments in the Kaliningrad direction tariff policy, about changes which took place during last few months and what measures should be undertaken in future.
- Sergey Lvovich, as we know, Belarus and Lithuanian railways have reduced their transit tariff rates for a few types of cargoes moving in the Kaliningrad direction for the period from May to July. How effective was such approach?
- Really, a tripartite meeting which took place in Palanga in May and achieved agreements moved "the Kaliningrad problem" forward in a positive direction. Thus condensed gas cargo flows on the Kaliningrad railway grew by 50% (41.900 tons) in July when compared to January 2009, gasoline - by 55% (44,900 tons), and black oil – increased 13.5 times (from 975 tons in January to 13,200 tons in July). Besides, 106,300 tons of distilled gas condensate was transported within the same month with the participation of the Kaliningrad railroad. However it did not bring a cardinal change in the transport complex of the Kaliningrad area, and it is that issue that the Russian Transport Ministry informed the Belarus and Lithuanian sides about. Therefore the question of optimal distribution of freight traffic between the port of Klaipeda and the port of Kaliningrad remains open.
- Does it mean that the measures undertaken are not enough to restore cargo traffic in the Kaliningrad direction?
- The Russian party made specific proposals at the meeting in Palanga in order to reduce tariff levels for those cargoes which traditionally formed the cargo flows in the Kaliningrad direction. Unfortunately, they were only partially considered. Moreover, after the administration of Lithuanian Railways declared a decrease in pig-iron transit tariffs from July 1st 2009 from Prisady station which is the South-Eastern Railway, to Kaliningrad Oblast, they reversed this decision in less than two months, and since August 15th they have raised these tariffs again. The Lithuanian party’s reasons, such as “a concern by pig-iron senders to establish exclusive tariffs for one sender", cause only bewilderment. The matter is that by the end of June RZD, on behalf of the Russian Ministry of Transport, had already arranged with the Russian metal manufacturers, including pig-iron, to increase cargo flows in the Kaliningrad direction. RZD’s materials gave a clear idea that the majority of Russian ferrous metals exporters are not planning to increase exports, even after the reductions in tariffs on Belarus and Lithuania railways, because there is no demand. Therefore it is absolutely unclear, what concern the Lithuanian party is talking about.
- What other factors play an important role in decisions on the Kaliningrad question? Is RZD considering applying lowering factors to cargo shipment in this direction? How expedient will it be?
- Lowering factors in cargo transport on Russian railways, with the participation of Kaliningrad Railways, have already been effective for many years, and moreover, they have been effective for all kinds of movements - domestic, export, import and transit. However they only partly solve the problem. I also note that when Russia lowered tariffs in the Kaliningrad direction, Lithuania raised tariffs in this direction, creating the conditions whereby freight traffic was rerouted in the direction of the port of Klaipeda. Therefore it is clear that tariff regulation alone here is not enough.
- What actions, in your opinion, should be taken to attract freight traffic towards the Kaliningrad transport junction in future?
- The RF Transport Ministry pays special attention to the organization of rail cargo transport in the direction of Kaliningrad ports. This question is the subject of constant discussion in the Russian-Lithuanian Intergovernmental Commission on Trade, Economic, Scientific, Technical, Humanitarian and Cultural Cooperation. Generally, it is necessary to note, that meetings with the Lithuanian and Belarus parties in the form of intergovernmental commissions and the related working transport groups prove to be an effective way of interaction. They allow for the necessary coordinated decisions to be taken quickly in the course of these discussions.
And it is without any doubt necessary to develop a ferry service between Ust-Luga and Baltiysk. This measure will allow the Kaliningrad area to be supplied with necessary cargoes without having to care about the unpredictable tariff policies of some our neighbours.
Interviewed by Olga Gorbunova
More details about the situation with Kaliningrad direction tariffs are to be found in the article "Three Sides of One Tariff" ("RZD-Partner" ¹ 16.2009).
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