OREANDA-NEWS. November 08, 2011. JSC "NC" Kazakstan temir joly" representatives appeared at the public hearing at the Agency of the Republic of Kazakhstan for regulation of natural monopolies with application for increase of tariffs on mainline rail network regulated services in 2012. They also presented 2008-2011 operating and financial performance report.

The meeting was chaired by the Deputy Chairman of ARNM Kairat Smagulov and attended by JSC "NC" Kazakstan temir joly Vice President for Economics and Finance Kanat Alpysbayev, heads of “KTZh” departments, representatives of major shipping companies and the deputies of the Kazakhstani Parliament. Honorary stationmaster Abi Sarkynshakov spoke at the hearing on behalf of the railway industry veterans.

Kanat Alpysbayev reminded the audience that natural monopolies include the services of the main rail network, access roads, electric and thermal energy transmission and distribution services.

According to Vice-President, starting from January 1, 2012 mainline network tariffs are planned to be increased by 10% with an overall increase of railway rates by 15%. The new tariff will be introduced under the 2010-2014 Kazakhstani transport infrastructure development program approved by Government Resolution of September, 30 2010. This document makes provision for an annual increase of railway rates by 15% in order to strengthen and intensify productive capacity of the railway industry.

As Vice-president noted, not only the need to increase the main rail network services tariffs is determined by the rolling stock deterioration, but also by the lack of funds to investment program implementation. The main directions of this program in 2012 are upgrade of the permanent way, construction, renovation and modernization of infrastructure, improving traffic safety, the further development of Dostyk station, etc.

Thus, owing to increase of tariffs for the mainline rail network services the Company will provide for capital repair of 600 km railway, acquisition of 2,699 freight cars, 134 locomotives, completion of electrification of 46 km-long railway at “Kostanai-Zheleznorudnaya” section, etc.

At the same time, owing to tariffs increase and loan raising in 2008-2011 JSC “NC “KTZh” has implemented 2,050 km railway capital repair, acquired 12,109 freight cars, 181 locomotive and upgraded 47 locomotives as well as mainline network equipment (track, cars, and power facilities), developed the border “Dostyk” station, etc.

In 2012 the Company is planning to increase the services rendered volume. In particular, freight turnover is forecasted to stand at 221,145 millions of ton-km, which is 2,5% higher than 2011 planned level (215,654 millions of ton-km), forecasted passenger turnover is expected to reach 14,532 millions of pass-km, which is 1.6% higher than 2011 planned level (14,305 millions of pass-km).

In the course of debates “KTZh” well-founded position, regarding 2012 tariffs application, was met with approval by the attendants.