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EVR Cargo to hike transport rates for some goods

The supervisory board of EVR Cargo, the Estonian state owned rail cargo operator, has endorsed changes to the rates it charges for transport effective from January 1st 2016 that will raise the price of the transportation of certain goods, informs LETA/BNS.

Fuel costs, which are a separate item in the EVR Cargo rate system, are set to boost the transportation rates further as a result of the higher excise duty to be applied to diesel in Estonia from next year.

A bigger increase is in store for the transportation of lighter goods in certain kinds of rail cars that represent a very small percentage of the total operations of EVR Cargo. The carriage of heavy machinery and equipment on platforms meanwhile will become cheaper, acting CEO Paul Lukka told BNS.

"The costs for the client depend on the transport tariff and a fuel surcharge. The latter is in constant change as a result of the price fluctuations on global markets and changes to the national excise policy," he said.

Although fuel prices on the world market are declining, customers of EVR Cargo will be charged more for fuel next year because of the rise in the fuel excise duty in Estonia.

"Without the rise in the excise duty the fuel surcharge would have become smaller by 0.05 euros per ton carried to a distance of 200 kilometers as a result of the drop in world market prices, yet now the same component will increase by 0.04 euros per ton," Lukka said.

EVR Cargo expects to carry 10.9 million tons of freight in 2016, compared with 11.7 million tons it is estimated to carry this year. "Freight volumes on the railway have been on a downtrend in recent years and EVR Cargo has been working continuously to make its operations more effective, simultaneously developing new projects to have additional freight volumes pass through Estonia," the acting CEO said.

Since 70% of the shipments handled by EVR Cargo are transit shipments, the rates charged by the company make up just one component of the total cost of the entire supply chain passing through Estonia.

(Source: http://www.baltic-course.com/eng/transport/?doc=114761)


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