Fenniarail started the rail transportation of imported timber between the border stations at the Finnish-Russian border and UPM plants in...
started the rail transportation of imported timber between the border stations
at the Finnish-Russian border and UPM plants in January 2018. Starting the
transport operations required Fenniarail to purchase logistics and shunting
services for the border traffic from VR-Group Ltd. From the perspective of Fenniarail, VR's
pricing was unreasonable and discriminatory, and the company lodged a complaint
on the matter to the Rail Regulatory Body. The Regulatory Body processed the
complaint during 2018 and issued its decision on 24 September 2018.
to the decision, the pricing applied by VR does not in all respects comply with
the Railway Act and the decrees issued based on it. The Regulatory Body ordered
VR to lower its prices and correct the pricing structure of its service
is the first decision issued concerning the basis for pricing in rail freight
transport. The principles have now been established on how VR as the sole
provider must price its services for other rail freight transport operators.
Fenniarail believes that the official decision clarifies the pricing of border
traffic. Fenniarail’s goal is effective competition in freight traffic, which
provides the best benefits to Finnish trade and industry.
think that the decision of the Regulatory Body is a significant one, and expect
VR to adjust its pricing so that it corresponds to the costs”, says Juha
Hakavuori, managing director of Fenniarail.
decision issued is a step towards a neutral competitive situation. In the next
phase, the logistic services of the border traffic must be transferred to an
independent party. The decision by the Regulatory Body clearly indicates the
problems that arise when an operator possessing a monopoly provides and prices
its services for its competitors”, says Petri Lempiäinen, chairman of the