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The entry into force of the new UZ contract on freight should be delayed

23/ 03/ 2020

From April 1, 2020, Ukrzaliznytsia plans to enact a new contract on the provision of rail freight services.

After a detailed analysis of the new contract, the companies concluded that many provisions require revision or further elaboration. This cannot be done in the period that remained until the entry-into-force of the contract. Also, logistics companies are now putting considerable efforts to reorganize their activities under the quarantine regime. As the logistics business is working in an intense mode, so companies do not have enough time to develop the document together with UZ.

In particular, the business has several reservations about doubling fees for some services, lack of fair liability of UZ as a carrier, transfer of standing time costs to business, the size of the transportation discount, an impossibility for the customer (business) to make adjustments to the agreement, transfer the shipment delay costs to the customer (even if the customer does not control it), etc.

According to the EBA member companies, Ukrzaliznytsia is now refusing to confirm freight plans for those who have not yet joined the new contract. Freight plans are not adopted both for Ukrzaliznytsia and private railroad cars. EBA Logistics Committee experts are convinced that such actions are unacceptable because they can simply stop the work of the largest shippers (manufacturers of products), which in the current conditions may further complicate the economic situation in the country.

Given the strategic role of logistics companies in supporting economic activity and the complex conditions in which businesses currently have to operate, the European Business Association calls for a delay of two months for the new contract to enter into force until June 1, 2020. Also, we recommend considering the proposals of the Association and make changes that will also reflect the position and interests of customers.

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