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THE RAILWAY PLUNDERS THE ENTREPRENEURS
K. Beglaryan
Hayots Ashkhar Daily
12 Nov 08
Armenia
Making Use Of Monopoly Position
On the one hand by exaggerating the investments and on the other hand
by employing this investments far not for raising the effectiveness
of the railway's activity but for purchasing expensive cars for the
leadership of the railway, the manager of the Armenian Railway is
still not satisfied.
The "South-Caucasian Railways" has abruptly raised the tariffs of
different services linked with freight transportation, which arouse the
indignation of the entrepreneurs making use of the railway. It is not
accidental that recently two companies "Tariel and Sons" and "Flesh"
appealed to the Committee on the Protection of Economic Competition,
complaining of the policy pursued by the railway.
Both companies complained of the abrupt growth of the tariffs for
freight transportation, which they link with the monopoly-status of
the railway. The company "Tariel and Sons" informed the committee
that due to this policy the company has not functioned for the last
three months and has stopped freight delivery.
It turns out, making use of monopoly-status the "South-Caucasian
Railways" dictates its conditions to the entrepreneurs. Sometimes they
don't fit the logic and they are only aimed at providing profits for
certain people.
Artificial Structure Aimed At Earning Money
Strange as it may seem the railway's leadership compels the companies
realizing freight transportation to make use of the so-called mediator
services. Naturally they must pay for this. It was for this very
purpose that recently "Trans-Caucasian Transportation Expeditionary
Company" CSJC was established. The before mentioned mediator-company
is registered in Charentsavan but functions in Yerevan.
Though the railway doesn't have any participation in the company and
is not considered an adjacent organization, the fact that the leader
of the "South-Caucasian Railways" exhorts the entrepreneurs to make
use of the company's services testifies to their interest towards
this company.
And this is far not accidental. Especially because money circulation
can be very swift in this mediator company. Making use of its monopoly
conditions the leadership of the railway is doing its best to achieve
that end. They employ the mechanism of delaying the transportation
of the freights, thus obliging the entrepreneurs to make use of the
mediator company. It is not accidental that if before the freights
reached Yerevan from Ayrum station in 24 or maximum 36 hours, these
days they reach in 3-4 days.
In case of cooperating with the mediator-company "South-Caucasian
Railways" promises to transport the freights in two days. And this
is in case when before handing the company over to concessionary
management the freights reached their destination in one, one and a
half days. In other words the railway has lost its pace under the new
leadership. And by the way it is not clear what additional service
will the mediator company show for the money paid. Especially because
the companies functioning in the sphere of importing don't need this
service. But for this strange service they demand 10% of the money
paid by the entrepreneur for delivering the freights from Ayrum to
other stations.
Taking into consideration the volume of the freights, a huge amount
of money can yearly be allocated in this sphere.
Certain Services Have Become Five Times More Expensive
Instead of making investments, raising the effectiveness of
the railway's activity, reducing the duration of the freights,
reconstructing the rails, aimed at having additional income, the
leadership of the "South-Caucasian Railways" considered raising the
tariffs to be one of the first actions taken by the company. The prices
of certain services have palpably risen. Sometimes the increase of
prices is five times more.
For example the service of freight delivery, which is nothing more than
a simple note on the direction of this or that wagon, has raised from
3600 to 18 000 drams for one wagon. To avoid paying additional money
for that service some companies have found alternative ways. Instead
of Ayrum they place an order for the wagons in Batum and pay there,
where this service is incomparably cheap - 5 dollars.
>From June 1 the expenses of the station has raised by 30%. The role
of the station is that after entering the station the railway must
transfer the wagon to the sidetrack of the company by its electric
locomotive.
If before there was certain normative linked with unloading the
wagons, to be more precise privileged terms, or they didn't have to
pay money for a wagon in the stop, at present this norm is simply
annihilated. From the moment the wagon enters the station the railway
charges utilization payment.
Moreover sometimes the company demands money even if the wagons have
to stop in the station through their fault.
To Be Continued
From: Emil Lazarian | Ararat NewsPress
K. Beglaryan
Hayots Ashkhar Daily
12 Nov 08
Armenia
Making Use Of Monopoly Position
On the one hand by exaggerating the investments and on the other hand
by employing this investments far not for raising the effectiveness
of the railway's activity but for purchasing expensive cars for the
leadership of the railway, the manager of the Armenian Railway is
still not satisfied.
The "South-Caucasian Railways" has abruptly raised the tariffs of
different services linked with freight transportation, which arouse the
indignation of the entrepreneurs making use of the railway. It is not
accidental that recently two companies "Tariel and Sons" and "Flesh"
appealed to the Committee on the Protection of Economic Competition,
complaining of the policy pursued by the railway.
Both companies complained of the abrupt growth of the tariffs for
freight transportation, which they link with the monopoly-status of
the railway. The company "Tariel and Sons" informed the committee
that due to this policy the company has not functioned for the last
three months and has stopped freight delivery.
It turns out, making use of monopoly-status the "South-Caucasian
Railways" dictates its conditions to the entrepreneurs. Sometimes they
don't fit the logic and they are only aimed at providing profits for
certain people.
Artificial Structure Aimed At Earning Money
Strange as it may seem the railway's leadership compels the companies
realizing freight transportation to make use of the so-called mediator
services. Naturally they must pay for this. It was for this very
purpose that recently "Trans-Caucasian Transportation Expeditionary
Company" CSJC was established. The before mentioned mediator-company
is registered in Charentsavan but functions in Yerevan.
Though the railway doesn't have any participation in the company and
is not considered an adjacent organization, the fact that the leader
of the "South-Caucasian Railways" exhorts the entrepreneurs to make
use of the company's services testifies to their interest towards
this company.
And this is far not accidental. Especially because money circulation
can be very swift in this mediator company. Making use of its monopoly
conditions the leadership of the railway is doing its best to achieve
that end. They employ the mechanism of delaying the transportation
of the freights, thus obliging the entrepreneurs to make use of the
mediator company. It is not accidental that if before the freights
reached Yerevan from Ayrum station in 24 or maximum 36 hours, these
days they reach in 3-4 days.
In case of cooperating with the mediator-company "South-Caucasian
Railways" promises to transport the freights in two days. And this
is in case when before handing the company over to concessionary
management the freights reached their destination in one, one and a
half days. In other words the railway has lost its pace under the new
leadership. And by the way it is not clear what additional service
will the mediator company show for the money paid. Especially because
the companies functioning in the sphere of importing don't need this
service. But for this strange service they demand 10% of the money
paid by the entrepreneur for delivering the freights from Ayrum to
other stations.
Taking into consideration the volume of the freights, a huge amount
of money can yearly be allocated in this sphere.
Certain Services Have Become Five Times More Expensive
Instead of making investments, raising the effectiveness of
the railway's activity, reducing the duration of the freights,
reconstructing the rails, aimed at having additional income, the
leadership of the "South-Caucasian Railways" considered raising the
tariffs to be one of the first actions taken by the company. The prices
of certain services have palpably risen. Sometimes the increase of
prices is five times more.
For example the service of freight delivery, which is nothing more than
a simple note on the direction of this or that wagon, has raised from
3600 to 18 000 drams for one wagon. To avoid paying additional money
for that service some companies have found alternative ways. Instead
of Ayrum they place an order for the wagons in Batum and pay there,
where this service is incomparably cheap - 5 dollars.
>From June 1 the expenses of the station has raised by 30%. The role
of the station is that after entering the station the railway must
transfer the wagon to the sidetrack of the company by its electric
locomotive.
If before there was certain normative linked with unloading the
wagons, to be more precise privileged terms, or they didn't have to
pay money for a wagon in the stop, at present this norm is simply
annihilated. From the moment the wagon enters the station the railway
charges utilization payment.
Moreover sometimes the company demands money even if the wagons have
to stop in the station through their fault.
To Be Continued
From: Emil Lazarian | Ararat NewsPress