Sea

Vidmantas Matutis

2012-01-24, 10:35

Russia laments railway tariffs to Kaliningrad

Russia laments railway tariffs to Kaliningrad
© Narod.ru photo

Such a decision is supposed to reduce freight transport through the port of Kaliningrad, which handles less than the port of Klaipeda. Kaliningrad handled over 5 million tons of cargo last year. Its turnover was 3.3 per cent lower than in 2010. However, railway tariffs increased both for cargo transported to Kaliningrad and to the port of Klaipeda. The representatives of port did not welcome this decision. This can reduce the levels of competition of Klaipeda, compared to Latvian and Estonian ports. Russia has claims against Lithuanian railway tariffs because it has to pay more than cargo going to the port of Klaipeda. Russia has also increased their railway tariffs by the same 6 per cent. There were claims before to increase this tax as high as 23 per cent. Such thoughts were suppressed by the Russian Prime Minister Vladimir Putin. They were convinced that such an increase could be devastating for Russian industry.

One can understand the businessmen from Kaliningrad. Because of increased railway tariffs, the transportation through both Lithuania and Belarus costs more. If one decides to transport one metal roll, weighing 28 tons, from Russian Lipetsk metal factory to Kaliningrad, it costs 300 U.S. dollars more than to transport the same roll to the port of Saint Petersburg. Russia has a chance to reduce railway tariffs in Belarus. After agreeing upon one international customs service between Russia, Kazakhstan and Belarus, there is a possibility to make the same railway tariffs in these countries. Then, Russian cargo can travel through Belarus, paying the same tariffs as in Russia. Comparatively short distance through Lithuania would not make an impact. The representatives of Klaipeda port also wait for this to happen. This could make better competition for them and Latvian ports.

Any inaccuracies, mistakes in this article? Contact us

Related news

Klaipeda port orients itself towards China
Name*:
A comment*: