OREANDA-NEWS. February 10, 2009. The Federal Antimonopoly Service (FAS Russia) initiated proceedings against "Russian Railways" OJSC ("RZhD" OJSC) for violating Part 1 Article 10 of the Federal Law "On Protection of Competition", reported the press-centre of FAS Russia.

The case was initiated upon petitions form consignors.

According to the materials possessed by FAS Russia, the carrier ("RZhD" OJSC) avoids providing integrated transport service for transportation of grain by railway transport in general use directly to the consignors. "RZhD" OJSC refuses to provide grain cars form the carrier's fleet.

Such actions by RZhD" OJSC force the consignors to engage the third parties (a forwarding agent - "LP Trans Транс" Ltd.) for transportation of the goods in the rolling stock of the group of persons of "RZhD" OJSC and pay the agent commission to this parties (according to the Russian Grain Union, in 2008 the agent commission was on average from 240 to 600 Rubles per ton of grain).

The practice of paying for the services of a forwarding agent on car ordering and supply is not a novelty. The consignors, however, used to have a choice between approaching the carrier - "RZhD" OJSC and requesting an integrated transport service, provided under a public contract at the government-regulated prices (rates), and using the services of a forwarding agent for organization of transportation and paying for intermediary services of a professional participant of the market of railway transportation.

Currently, according to several consignors, "RZhD" OJSC refuses to satisfy applications for grain cars from the carrier's fleet, because payment for intermediary services of a forwarding agent, selected or to be selected by "RZhD" OJSC, is a mandatory condition for transportation.

The situation when consignors must pay for intermediary services of the third parties not only contravenes the principles of public contract for transportation by railway transport in general use. Undoubtedly, it affects consumers (by increasing the transportation costs in the final price of the transported goods) and /or producers (by reducing their cost-effectiveness due to increased transportation costs in the price of the transported goods).

The case will be hears on 5th March 2009.