OREANDA-NEWS. November 06, 2012. Consignors accuse the monopolist - “Russian Railways” OJSC - of creating discriminatory conditions. The Federal Antimonopoly Service (FAS Russia) postponed a case against “Russian Railways” OJSC, initiated upon signs of violating Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition”, in order to obtain additional information, reported the press-centre of FAS Russia.

The case was initiated upon a complaint from “Urals Steel” OJSC about actions of the holder of natural monopoly. The complainant duly agreed with “Russian Railways” OJSC its application for freight transportation (GU-12) by railway transport. However, according to a telegram of 1st February 2012, “Russian Railways” OJSC established the so-called “logical test” for shipments from 15 railway stations, specifying the quantity of cars accepted for transportation at each station, the type of cargo, the list of consignees to whom cargo can be sent. In particular, coal can be shipped from stations of West-Siberian Railway to “Luzhskaya” station of Oktyabrskaya Railway only to “Rosterminalugol”

OJSC and “Multipurpose Reloading Complex” Ltd. As a result, the agreed freights were not accepted for transportation.

“Russian Railways” OJSC informed the company that logical test had been established “due to freight in excess of industry norms on North-Caucasus Railway, limited capacity and forced removal of trains from operations, as well as in order to ensure stable operations of North-Caucasus Railway. Therefore, the “Etran” Automated System did not register carriage documents for the freight quantities in excess of the logical test established for the South-Urals Railway”.

As a result of the logical test for loading export cargo, “Urals Steel” OJSC incurred significant losses in the form of the fines paid to car owners for delays and to “Russian Railways” OJSC (for occupying railway trucks by cars). The consignor also was unable to plan the quantity of shipments, which adversely affected production.

At a session of the FAS Commission, a representative of “Russian Railways” OJSC was unable to explain the procedures for establishing and introducing the logical test referring to the relevant norms of the railway law and a positive effect gained by “Russian Railways” OJSC from introducing such control.

These actions by “Russian Railways” OJSC have signs of violating Clause 8 Part 1 Article 10 of the Federal Law “On Protection of Competition”: creating discriminatory conditions for some consignors / consignees.

Reference:

1) “Russian Railways” OJSC has the dominant position on the market of railway transportation services and the services for using the infrastructure of the railway transport in general use.

2) “Russian Railways” OJSC is included in the Register of economic entities that have over 35% share on the market of particular goods or have the dominant position on the market of particular goods. The company’s share on the market of railway transportation services and the services for using the infrastructure of the railway transport in general use exceeds 65 %.

3) West-Siberian Railway and Oktyabrskaya Railway are branches of “Russian Railways” OJSC.