RZD wants tariff corridor expansion to compete with other forms of transportation
MOSCOW. Oct 24 (Interfax) - Russian Railways (RZD) wants to expand the tariff corridor within which it can vary the rates it charges for its services, in order to better compete with other forms of transportation.
"To successfully compete for freight business with other forms of transportation the tariff corridor should be expanded," an RZD spokesman said, citing First Vice President Vadim Morozov.
Since 2013, RZD has had the right to modify lower or raise the tariff set by the Federal Tariff Service (FTS), down by as much as 12.8% or up as much as 13.4%.
"Depending on the economic feasibility, RZD uses the mechanism intensively to attract various freight categories," he said. The tariff corridor has enabled RZD to win more than 4.5 million tonnes in additional freight business through the first nine months of 2014, Morozov said, adding that Russia's railroads handled 913.2 million tonnes of freight overall in the nine months.
