Kazakhstan rail roads will transport coal on prepayments terms only

/IRBIS, July 17, 00/ -Reuters informs that national state enterprise (NSE), Kazakhstan Temir Zholy announced new payment terms of coal transportation, the company introducing since July 15. From this date prepayment will be required to transport coal by rail road carriers. The company's press release states that the decision was made due to lack of funds and according to the "Transportation law" of the republic of Kazakhstan. For the last three years, the practice on credit terms of payments was wide spread with tariff rate remaining unchanged since 1998. For the first half of year, NSE Kazakhstan Temir Zholy transported 34.361 mln tons (25.921 mln tons in the same period of 1999). At present the total debt of coal pits and Russian power resources companies to the enterprise totaled 3.9 bln tons.