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Archive 2007

  • Will through transportation rates be implemented?

    14.06.2007

    - Ukraine's positions in the Euro-Asian transport chain can weaken because of slow reforms in its transport sector and insufficient implementation of joint projects on facilitation of goods transit through its territory. On June 5-6, 2007 the meeting of Coordination Transport Conference of CIS Member States took place in Odesa (Ukraine). The formation of single transport space was the main issue discussed, in particular transportation tariffs coordination. The vision of transport authorities of the CIS-members regarding ways of tariffs adjustment seems to be different. Ukraine, which failed to reform its transport sector in accordance with up-to-date needs and, as a consequence, cannot offer transparent and justified tariffs, is seen as one of the outsiders. Russia and other CIS-members insist on real steps towards reforms acceleration and tariff policy changes, at least in part of through rates formation, which are proposed to be extended over the whole territory of the CIS space. As the result, only general agreement regarding special workgroups creation was reached, and the solution of this crucial issue was again postponed till the next meeting, which is planned to occur in October, 2008.

    The introduction of through rates could facilitate transportation of goods along main international axes significantly, because they represent approved single tariff on certain goods transportation along the eligible routes between water, rail and automobile transporters, which can be offered to any customers independently from their country of origin. They also encourage international transport corridors development and strengthen national forwarders' protection against unequal and unpredictable actions from the side of foreign partners. If through rates are not introduced, all the countries, including Ukraine, will lose part of the transit incomes, which are supposed to grow, and will be forced to develop alternative, less favourable transport routes.

    Ukraine formally declared its support of through rates on the space of the CIS and even introduced them on the certain routes, but such measures are not sufficient. Now it risks to be partially excluded from the global process of transport systems integration within Euro-Asian transport area, postponing the making of strategically important decisions. In order to increase Ukraine's attractiveness as a transit country and its competitive advantages, actions, coordinated on the governmental and sectoral levels, should be realized as well as the whole sector reform accelerated.

    Authors: 
    Research spheres:  Infrastructure
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