Economy rail tariffs to climb 20% in flexible system - Yakunin
GORKY. Dec 4 (Interfax) - Economy rail tariffs will go up 20% though a flexible system, OJSC Russian Railways (RZD) Chairman Vladimir Yakunin told the press.
As the government has made the decision, RZD will raise tariffs, he said.
"We will use a flexible system for the increase so that it does not hit passengers very hard," he said.
The 2013 federal budget envisages a cut in subsidies to RZD long-distance train subsidiary - OJSC Federal Passenger Company to 14.8 billion rubles. Federal Passenger company said compensation for government regulation of tariffs should be around 37 billion rubles, although for the past few years the government has only allocated about 30 billion rubles. The company filled the gap with the non-regulated segment - compartments, sleepers and first-class railcars.
Earlier it was anticipated that economy class rail travel might go up just 10% in 2013.
In its explanatory note to the RZD financial plan for 2013, which was submitted to the government in the fall (and of which Interfax has a copy), the monopoly said the Economic Development Ministry proposed cutting subsidies and upping economy class tariffs 10% in 2013 from January 1 and a further 10% on May 1 "with the use of a flexible regulation schedule."
However, the ministry did not confirm to Interfax that it had made these proposals. The Finance Ministry put forward the idea that the federal budget should not be supporting the workforce aged between 23 and 60. The Economic Development Ministry believes government support volumes should satisfy existing demand for these services, Yaroslav Mandron, a department head at the ministry, said.
The Economic Development Ministry proposed upping tariffs 10% in 2013, optimizing the number of trains on less busy routes, reducing unprofitable trains and increasing the internal efficiency of the Federal Passenger company and boosting yield from other segments. In addition, surcharges could be applied on high-speed and express trains and during the summer vacation season for resort destinations.