KazGrain Association Urges Moratorium on KZT Railway Tariff Increases
The National Association of Exporters "KazGrain" has requested a moratorium on planned tariff increases by Kazakhstan's state railway company KZT (Kazakhstan Temir Joly) effective April 1, 2026. In a letter to the Business Chamber "Atameken," KazGrain highlighted that proposed tariff hikes for all cargo types—including domestic, export, and transit shipments—would create a "critical burden" on businesses, particularly the agricultural sector, which relies heavily on rail transport for grain exports.
According to the association, the proposed increases contradict current macroeconomic conditions, external market dynamics, and business liquidity. "This level of tariff growth could significantly reduce the profitability of exports, erode Kazakhstan's competitiveness in international markets, and cut shipment volumes," the letter stated. KazGrain emphasized that railway transport is "a key logistics element" for grain, oilseed, and other agricultural goods, with any significant cost increase threatening the country's export potential.
KazGrain recalled that similar tariff hikes in March 2025 led to a 15% decline in export volumes after temporary implementation of maximum rate surcharges. Although tariffs were later canceled in June 2025, the short-term impact disrupted contracts, export plans, and supply chain stability. The association noted that while the government provided subsidies for alternative export routes during the 2025 period, the current proposal risks nullifying these measures.
"The repeated justification for tariff increases—funding investment programs—does not align with the long-term nature of rate decisions," KazGrain argued. "We demand a comprehensive analysis of tariff dynamics over the past five years, including investment implementation, funding sources, and the impact on competitiveness." The association also stressed that tariff hikes should be accompanied by measurable improvements in service quality, transit times, and infrastructure transparency, which have not been observed in practice.
Key requests from KazGrain include:
- Collaborating with the government to assess the economic justification for tariff increases
- Requesting detailed calculations from KZT and government agencies
- Conducting an independent analysis of tariff policy impacts on exports and agriculture
- Implementing a moratorium until such analysis is complete
- Establishing open dialogue with industry associations and major shippers