Russian Federal Antimonopoly Service (FAS) on March 4, 2010 said the Novorossiysk Grain Terminal OJSC, part of the Novorossiysk Grain terminal and Novorossiysk Commercial Sea Port Group had breached Part 1 Article 10 of the Federal Law "On Protection of Competition”. According to antitrust legislation the NGT OJSC will be fined, the FAS press service said.
The case was filed by FAS after the agency conducted audit at the NGT that followed the Russian Grain Union’s claim against exorbitant tariffs by the Terminal for transshipment of exported grain.
The FAS Commission found that the NGT&NCSP Group dominates in the market of export grain service at the ports of Azov-Black Sea basin, controlling over 50% of the market services. The company’s tariff rate on exported grain climbed in 2009 from 425 rubles a ton to 550 rubles a ton, the FAS statement said.
The tariff was found unreasonable by the FAS commission. The NGT will be fined, said Teimuraz Haritonashvili, the head of FAS’ department supervising chemical industry and agro-industrial complex of Russia.
Novorossiysk Commercial Sea Port is the largest port operator in Russia. In 2009 freight turnover at NCSP Group totaled 86.5 million tons. Consolidated revenues of the Group on International Financial Reporting Standards for the 9 months of 2009 amounted to - $508.238 million. This late February, the Group has announced its plans to reconstruct Novorossiysk Grain Terminal to increase its transit capacity by 2 million tons a year. According to the NCSP Group, NGT is currently handling up to 500.000 tons of grain a month.
The case was filed by FAS after the agency conducted audit at the NGT that followed the Russian Grain Union’s claim against exorbitant tariffs by the Terminal for transshipment of exported grain.
The FAS Commission found that the NGT&NCSP Group dominates in the market of export grain service at the ports of Azov-Black Sea basin, controlling over 50% of the market services. The company’s tariff rate on exported grain climbed in 2009 from 425 rubles a ton to 550 rubles a ton, the FAS statement said.
The tariff was found unreasonable by the FAS commission. The NGT will be fined, said Teimuraz Haritonashvili, the head of FAS’ department supervising chemical industry and agro-industrial complex of Russia.
Novorossiysk Commercial Sea Port is the largest port operator in Russia. In 2009 freight turnover at NCSP Group totaled 86.5 million tons. Consolidated revenues of the Group on International Financial Reporting Standards for the 9 months of 2009 amounted to - $508.238 million. This late February, the Group has announced its plans to reconstruct Novorossiysk Grain Terminal to increase its transit capacity by 2 million tons a year. According to the NCSP Group, NGT is currently handling up to 500.000 tons of grain a month.