August 7 2002, 18:27

Russia: Rail transportation rates unification to promote freight traffic between Belarus and Russia

Introduction of uniform rail transportation rates in Belarus and Russia will encourage freight turnover between the two countries. According to Belarus railway administration, the country's changeover to the rates, common with Russia, started form July 1, 2002, will allow its carriers reducing rail transportation costs by 20 to 50 percent, depending on freight and rolling stock type.

Marketing research showed that this rate agreement would reduce inland transportation costs in Russia for Belarusian carriers on average by 50 to 60 percent for oil and oil products, cement, potatoes and technical salts, 40 to 50 percent for goods made of ferrous metals and scrap, 30 to 40 percent for fertilizers and ceramic tile, 15 to 30 percent for coal, timber and grain.

According to Belarus railway authorities' estimation, cost of Russian freight transportation within Belarus will also decrease by 10 to 20 percent.