Ukrzaliznytsia gets over UAH 9 bln profit from cargo transportation in ten months

Ukrzaliznytsia in January-October 2020 received a positive financial result from freight traffic in the amount of more than UAH 9 billion, the company's income from freight traffic amounted to about UAH 53 billion.

According to the company, UZ Cargo is the only profitable direction of Ukrzaliznytsia's work.

According to the corporate management reporting of Ukrzaliznytsia, for the ten months of 2020 in the passenger transportation segment the company received a negative financial result: losses from passenger traffic amounted to UAH 10.9 billion, revenues some UAH 3.5 billion. While the company's revenues from freight traffic amounted to about UAH 53 billion, as a result, Ukrzaliznytsia received a positive financial result from freight traffic in the amount of more than UAH 9 billion.

"It is at the expense of the profit received from freight traffic that the company actually maintains the infrastructure in proper condition, pays wages to employees, subsidizes unprofitable passenger transportation and pays taxes to the state and local budgets. Ukrzaliznytsia does not receive any government subsidies for passenger transportation and for many years has been covering losses for funds from freight traffic," the company stressed.

As reported, income from domestic cargo transportation of Ukrzaliznytsia in October 2020 increased by 3.2% compared to October 2019, to UAH 2.2 billion.

In November, Ukrzaliznytsia increased the volume of cargo transportation by Ukrainian railways on all routes compared to the same period last year by 7%, to 27 million tonnes.

In January-June 2020, Ukrzaliznytsia received UAH 8.792 billion of a net loss, while for the same period in 2019 its net profit amounted to UAH 1.065 billion. Its net income from the sale of products (goods and services) in January-June 2020 amounted to UAH 35.623 billion (a decrease of 19.42% compared to the same period in 2019).

Source: www.en.interfax.com.ua