FAS brought UCL to a fine

FAS fined the Container Terminal St. Petersburg (KTSP) entering into UCL Holding Vladimir Lisin by 91.2 million rubles. But Igor Artemyev's department will not see this money.
Almost a year later FAS fined ZAO Container Terminal St. Petersburg, part of UCL Holding Vladimir Lisin, for 91 million rubles. for violation of the law on competition. As a result of the analysis, the agency concluded that stevedore overstated the cost of transshipment of containers in the "Big Port of St. Petersburg" from January 2015 and received from the offense an income of over 5 million rubles. In the UCL strongly disagree with the FAS accusations and challenge them in court. Sources of Kommersant in the industry do not exclude that in the near future stevedore will conclude an amicable settlement with the agency.

FAS fined entering into UCL Holding Vladimir Lisin ZAO Container Terminal St. Petersburg (TSCP) for 91.2 million rubles., Reported the agency. As noted in the resolution published on the website of the service on May 31, based on the analysis of the cost of services for loading and unloading operations from 2013 to early 2016, the FAS established the fact of price increase and concluded that stevedore holds a dominant position in the container handling market in the "Big port of St. Petersburg ", and the access of competitors to the commodity market is difficult.

The case itself was initiated in June 2016 on the basis of the violation of the competition law against cold-rolled coils. Then FAS accused UCL Holding and Global Ports of being a collective dominant in the container transshipment market in St. Petersburg and a significant increase in tariffs in dollar and ruble terms. For abuse of the dominant position by 5.44 billion rubles. The First Container Terminal (PKT) and Petrolesport Global Ports were fined another 1.6 billion rubles. the agency ordered to pay the East Stevedoring Company (see "Kommersant" on April 3). As a result, Global Ports entered into an amicable settlement with the FAS, reducing the total fine to 20 million rubles. (see "Kommersant" on December 13, 2017).

As explained on the agency's website, in the framework of the study, the FAS analyzed and compared the prices for transshipment of containers at the "Big Port of St. Petersburg" in 2014-2015 and the costs necessary to implement such services for TSC in 2013-2015, profit and profitability of stevedore.
As a result, the service came to the conclusion that the price for loading and unloading a container unit was 3.5 times higher than costs and profits.

In addition, in 2015, the cost of TSCs decreased compared to 2013 and 2014, and the volume of services provided increased. As a result, the profit of TSC in 2015 increased by 2.5 times compared to 2014, and the profitability was 423% (compared with 2013 - 3.6 times and 161%, respectively). The department is confident that the growth in profitability is directly related to the increase in the cost of transshipment of containers in 2015. From this, the FAS draws a conclusion on the establishment and maintenance, starting from January 1, 2015, in the "Big Port of St. Petersburg" and TSCC, in particular, the monopolistically high prices for container transshipment services.

On 9 April, the FAS filed a case on an administrative offense against the TSC on the fact of violating the law on the protection of competition, the service recalls. At the same time, the agency claims that Stevedore refused to provide explanations, as the TSCC does not agree with the FAS decision and considers it illegal.

The Moscow Arbitration Court, in which the LTSP challenged the FAS decision, on February 8 found it lawful, and the stevedore did not provide evidence of the absence of an offense, reads the FAS website (for details, see "Kommersant" on February 1).

FAS states that the TSC had the opportunity not to establish and maintain monopolistically high prices for transshipment of containers, but stevedore did not take all the necessary measures to comply with the competition law. Among other things, TSCC continued illegal behavior, despite the requirement to stop it, the website notes. According to the service, RTSC as a result of the offense received income over 5 million rubles.
At UCL strongly disagree with the decision of the FAS and plan to challenge it in court.

In the course of the proceedings, TSCC provided evidence that objectively indicates that the company does not occupy a dominant position in the container transshipment market and operates in a highly competitive environment, the holding says. The position of UCL Holding on the lack of a legitimate reason for the Federal Antimonopoly Service (FAS) to involve TBC in liability (since there is a competitive environment for the provision of services for transshipment of containers in the "Big Port of St. Petersburg") is undoubtedly confirmed by expert opinions prepared by Plekhanov RER and the Analytical Center under the government of the Russian Federation under the order of the Russian Union of Industrialists and Entrepreneurs in the framework of consideration of the issue of excluding seaports from the register of subjects of natural monopolies, noted in UCL.

Appeal UCL Holding by decision of the FAS should be considered next week. Sources of Kommersant in the market do not exclude that the dispute will end the world. However, the head of the FAS Igor Artemyev said about this outcome (see "Kommersant" on September 20, 2017), but in January the service called "unacceptable" and "insulting" the terms of the settlement agreement proposed by the holding (see "Kommersant" on January 10 ). In mid-May, the deputy head of the FAS, Sergei Puzyrevsky, stated that the service and UCL had updated the draft of the amicable agreement and are in the process of discussion.