PRESIDENT OF ‘MIKA LIMITED’: HIGH COST OF RAILWAY TRANSPORTATION REDUCES POSITIVE EFFECT FOR EXPORT DEVELOPMENT CAUSED BY INCREASE OF EXCHANGE RATE

ArmInfo
2009-03-19 13:43:00

ArmInfo. High cost of the railway transportation largely brings to
naught the positive effect for export development caused by increase
of the dollar-dram exchange rate, President of "Mika Limited" Holding,
owner of "Mika Cement" plant Mikhail Baghdasarov told journalists
when commenting on the cement export prospects. ‘We understand that
the railway needs to recoup its work, however, the tariffs may be
increased smoothly – by 10%, and not by 90% at once like in June,
2008. We almost stopped using the railway in this period, and we had
to deliver the cement by cars for some time’, M. Baghdasarov said.

As Director of ‘Mika Cement’ plant Naira Martirosyan said, 30% discount
for export transportation, announced by SCRW, took effect very late,
that may cause loss of markets. According to her, the discounts were
announced by SCRW in December 2008, however, they were finally formed
only in February 2009. ‘As a result, we yield an essential part of
foreign markets, in particular, in Georgia, to the Turkish cement over
the last half year’, N. Martirosyan said. She added that besides the
tariffs, SCRW increased the station expenses and the payment for use
of wagons by almost 300%. ‘We carry our products in 34 wagons per
day. It means that such increase has become very sensitive for us’,
the director emphasized. In particular, she said, the company has to
stop supplying cement for the Olympic construction in Sochi because
of the high railway tariffs.