Anatoly Golomolzin: activities in inland water ports and seaport can be performed and developed under competitive conditions

On 12 August 2016, FAS Methodological Council discussed tariff regulation, deregulation and market pricing in seaports.

Attendees included all interested persons, including representatives of ports, stevedoring companies, investors, consignors, operators, research organizations and the authorities.

“Overall the position of all members of the Methodological Council was in the agreememnt that stable national policy on tariff-setting and antimonopoly enforcement should be preserved. The common approach must be maintained”, emphasized Anatoly Golomolzin. “Tariff regulation must be based on market analysis conducted in line with the norms of the antimonopoly law”.

Market analysis takes place in accord with No.220 FAS Order. The Law on natural monopolies prohibits restraining market transition from natural monopoly to a competitive state. Under the Treaty on the Eurasian Economic Union a decision on introducing, changing or terminating tariff regulation can be made only after conducting market analysis.  

“If market analysis shows that competitive conditions are absent, tariff regulation should apply”, said Anatoly Golomolzin. “If conditions for transition from natural monopoly to a competitive state are created, flexible tariff regulation should apply. Where conditions for competition are established, tariffs must be deregulated. Competition can be in a particular port and between ports, as well as between Russian and foreign ports”. Overall market participants point out that competitive conditions are present in the majority of the market segments, including seaports and river ports.

Evaluating the consequences of tariff deregulation, of principle importance are the growth of the volume of port services and the extent of establishing favourable conditions for investments in developing new ports and port capacities. Experts underline that in recent years the analyzed field has been one of the most successfully developing: with regard to the trends on ship-to-ship transshipment as well as port capacity development trends.

An earlier adopted market deregulation allowed preserving favourable economic results. Anatoly Golomolzin emphasized that deregulation does not mean an uncontrolled market environment. The antimonopoly standards are in effect and can be pin-pointedly applied against the companies that violated the law. There also should be the rules for non-discriminatory access that guarantee access to restricted infrastructure.

“It is the approach that will encourage stable tariff and antimonopoly policy, and, therefore, sustainable performance and development of ports and the economy in general”, summed up Anatoly Golomolzin.

Experts decided that FAS Methodological Council must consider draft pricing methods in order to enable professional discussions with all interested parties.