OREANDA-NEWS. December 02, 2011. “FESCO Lines Vladivostok” Ltd. (“FLV” Ltd.) unreasonably increased the rates for transporting by sea 20- and 40-foot loaded containers from Vladivostok port and Vostochny port to Magadan port. In 2009 – 2010 such transportation was exercised as inter-portal and direct combined railway-and-water transportation. The Office of the Federal Antimonopoly Service in the Magadan region (Magadan OFAS Russia) classified such actions as a violation of the antimonopoly law (Clauses 1 and 6 Part 1 Article 10 of the Federal Law “On Protection of Competition”), reported the press-centre of FAS Russia.

At the same time, OFAS analysed the state of competition on the market of sea transportation of loaded containers to Magadan port in 2009-2010. It was found that “FLV” Ltd. had dominant position – with the share over 50 % on the market of transporting multi-tonnage (20- and 40-foot) containers.

On 15th November 2011, investigating the case, the Commission of Magadan OFAS Russia established that in 2010 profitability of transportation in multi-tonnage containers between Vladivostok – Magadan and Vostochny – Magadan exceeded 120% for inter-portal transportation in contrast to 38% for direct combined railway-and-water transportation. Although containers for inter-portal and direct combined railway-and-water transportation was carried out simultaneously on the same vessel, the rates for transporting containers by sea (direct combined railway-and-water transportation) were 28-39 % lower than the rates for inter-portal transportation of containers.

Magadan OFAS Russia issued a determination to the group of persons including “Far East Ocean Company” OJSC, “FLV” Ltd. and “FESCO Integrirovanny Transport” Ltd. to form 2012 rates for sea transportation in multi-tonnage containers of consignors and consignees to Magadan port based on costs and profit necessary to provide the service. Magadan OFAS Russia also issued a determination to the companies that they must not unreasonably fix different rates for inter-portal and direct combined railway-and-water transportation of multi-tonnage containers to Magadan port.