Russian FAS says river ports’ facilities could go private
There is a need to lift the ban on privatization of piers at the river ports and make for investors the procedure of privatization of land more simple for building new ports, the Russian Federal Antimonopoly Service said in its report posted on the agency’s website.
The FAS believes the piers privatization ban and tariff regulation for loading/offloading operations make “the development of competition in inland waterway transport a problem”. There is a domination of a handful of carriers in some remote areas of the Russian Federation, including the Far North, where water transport is the only mode of transport, the agency statement said.
"It would be useful for the development of competition in this market, as well as for the effective development of the market, to cancel the state regulation of handling operations for all stevedoring companies based in European part of Russia, Primorsk and Khabarovsk Territories, save the stevedoring companies operations located In Kamchatka, Magadan and Sakhalin regions, in the Chukchi and Koryak Autonomous Districts, as they do not have the rail and automotive communications with the central regions of the country" the report says.
The FAS believes the piers privatization ban and tariff regulation for loading/offloading operations make “the development of competition in inland waterway transport a problem”. There is a domination of a handful of carriers in some remote areas of the Russian Federation, including the Far North, where water transport is the only mode of transport, the agency statement said.
"It would be useful for the development of competition in this market, as well as for the effective development of the market, to cancel the state regulation of handling operations for all stevedoring companies based in European part of Russia, Primorsk and Khabarovsk Territories, save the stevedoring companies operations located In Kamchatka, Magadan and Sakhalin regions, in the Chukchi and Koryak Autonomous Districts, as they do not have the rail and automotive communications with the central regions of the country" the report says.
The antimonopoly agency says it is necessary to provide conditions for forming in each port several competing stevedoring companies. That includes removal of privatization barriers and the leasing of state-owned piers through open tender. A stevedore could have only up to 35% of the entity. This would attract competing companies, the agency says.
"These measures, together with deregulation will provide guarantees to private investors and investments return ", the FAS’ report said.
"These measures, together with deregulation will provide guarantees to private investors and investments return ", the FAS’ report said.