OREANDA-NEWS. November 26, 2014. To execute a determination of the Federal Antimonopoly Service (FAS Russia), “Russian Railways” OJSC sent telegrams to the involved units not to introduce restrictions that are not provided for by the current law, including “logistic control”, for concluding freight traffic contracts.

Earlier, in April 2014, FAS found that “Russian Railways” OJSC violated the antimonopoly law by decreasing loading cars of “Urals Steel” OJSC and introducing “logistic control” (Clauses 4 and 5 Part 1 Article 10 of the Federal Law “On Protection of Competition”). The monopolist refused to draw carriage documents (rail consignment notes) for transporting cars under the framework of executing GU-12 applications forms already approved by “Russian Railways” OJSC.

The case was initiated upon a complaint of “Urals Steel” OJSC about the actions of the holder of natural monopoly: the petitioner duly agreed its applications for freight traffic (GU-12) by rail transport with “Russian Railways”. According to its telegram of 1.02.2012, “Russian Railways” established the so-called “logistic control” for shipments from 15 railway stations, specifying the number of cars accepted for shipment for each station, the type of freight, the list of consignees, to whom consignments can be shipped. In particular, coal could be shipped from stations of the West-Siberian Railway to Luzhskaya station of the Oktyabrskaya Railway only for “Rosterminalugol” OJSC and “Universal Handling Terminal” Ltd. As a result, earlier approve consignments were not accepted for shipment.

In its letter “Russian Railways” informed the company that logistic control was established “due to above-limit consignments on the North-Caucasian Railway, limited throughput capacity and forced withdrawal of trains, as well as to achieve stable performance of the North-Caucasian Railway”. Therefore, “Etran” Automated System prevented drawing shipping documents for the shipments above the logistic control norms set for the South Urals Railway.

As a result of logistic control over export shipments, “Urals Steel” OJSC incurred considerable losses paying fines to the car owners for delays and to “Russian Railways” (for cars occupying rail tracks). The consignor also was deprived of a possibility to plan the scope of shipments, which adversely affected the production process.

Reference:

1) “Russian Railways” OJSC has the dominant position on the market of rail transportation services and services for use of public rail transport infrastructure.

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

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