C 396/10 EN Official Journal of the European Communities 19.12.98

Commission notice pursuant to Article 12(2) of Council Regulation (EEC) No 4056/86 concerning Case No IV/36.844 — POLFIN

(98/C 396/06) (Text with EEA relevance)

INTRODUCTION uniform or common rates for the services provided in accordance with paragraph 3(b) of Article 1 of 1.ÙOn 17 December 1997, Finncarriers Oy Ab (Finn- Regulation 4056/86. carriers) submitted an application pursuant to Article 12 of Council Regulation No 4056/86Ø(Î) with a view to obtaining a decision pursuant to Article 5.ÙThe Parties are free to enter into individual service 85(3) oft the Treaty establishing the European contracts with shippers on such terms as may be Community. The application was made by Finn- agreed on a case-by-case basis and in accordance carriers, in its capacity as Conference Manager of with normal commercial principles. The terms of the POLFIN Liner Conference (the Conference), for such individual service contracts are not disclosed to and on behalf of itself and the other members of the the other members of the Conference. In addition, Conference, EuroAfrica Shipping Lines Limited and where this is requested by a shipper, Finncarriers and Poseidon Schiffahrt AGØ(Ï) (the Parties). EuroAfrica offer service contracts to which both carriers are party at prices which are negotiated by the Conference Manager on a case-by-case basis with the shipper requesting the contract. THE ARRANGEMENTS

2.ÙThe Parties entered into the Conference Agreement 6.ÙThe Conference Agreement came into effect on in order to pool the resources, revenues and 1 January 1997 and is effective for an unlimited expenses arising from their respective liner services duration, although any of the Parties may terminate between ports in and ports in . The the Conference Agreement on six months’ notice of Parties operate three sailings a week between termination to the other Parties. and Gdynia, one sailing a week between Helsinki and and one sailing a week between Kotka and Gdynia. FINNISH MARITIME LINKS 3.ÙThe Parties operate two vessels: the M/V Ino- wroclaw, which has been nominated by Euroafrica, 7.ÙIn excess of 90Ø% of the total volume of Finland’s and the M/V Swan Hunter, which has been jointly exports and in excess of 70Ø% of the total volume of nominated by Finncarriers and Poseidon. Both the Finland’s imports are seaborne. Given Finland’s M/V Inowroclaw and the M/V Swan Hunter are of dependence on its seaborne traffic, the extreme the 1A-ice class category. The services provided by weather conditions in the winter, when the sea ices the Conference are for both roll-on/roll-off over, is a particularly important consideration. The (Ro-Ro) cargo, that is cargo carried in lorries, Finnish Parliament has resolved that between 23 and trailers (semitrailers) and on roll trailers, stowable 26 ports must be kept open year round. This results Ro-Ro, Sto-Ro cargo. The Conference does not in considerable additional costs incurred by the State provide inland transport services and has not and operators of vessels similar to those used by the arranged any combined maritime/inland transport Conference. services.

4.ÙThe shares of the Parties in the Conference are 8.ÙAt the time of the accession of Finland to the 50Ø% Euroafrica and 50Ø% Finncarriers and European Union, the Republic of Finland and the Poseidon. Under the Conference Agreement, the Member States made a Joint Declaration that they Parties have agreed to furnish the necessary ferry agreed to pay due attention to the maintenance and and cargo handling equipment to provide maritime development of Finnish maritime links owing to transport services to and from ports in Finland and Finland’s geographical location and prevailing Poland in proportion, as close as possible, to their climactic conditionsØ(Ð). respective Conference shares. Further, the profits and losses of the Conference, after the time charter hires, are distributed in accordance with the (Ð)ÙIn Case No IV/35.680 (Baltic Liner Conference Agreement) Conference shares. The Parties operate under the Commission, in deciding not to oppose exemption, expressly took account of the fact that the cooperation in question had increased the efficiency of the parties’ (Î)ÙOJ L 378, 31.12.1986, p. 4. operations and had enabled them to undertake significant (Ï)ÙOn 12 March 1998, Poseidon Schiffahrt AG was transferred investment in equipment particularly suited to the climatic into the ownership of Finnlines Ltd, the owner of Finn- conditions in the Gulfs of Bothnia and Finland and to the carriers. special needs of Finnish shippers. 19.12.98 EN Official Journal of the European Communities C 396/11

THE MARKET —ÙSeawind Line (-)

9.ÙThe Parties have supplied figures provided to them —ÙTransfennica (Hanko-Gdynia). by the Finnish Maritime Administration according to which the northbound sea traffic from Poland to Finland totals annually for all carriers approximately 13.ÙThe Parties consider that in the future, as trade 172Ø000 tonnes. The southbound sea traffic from between Finland, on the one hand, and the Russian Finland to Poland totals annually for all carriers and the Baltic States, on the other hand, increases, approximately 323Ø000 tonnes. Approximately 65Ø% and as the interest in furnishing additional services of this traffic northbound is breakbulk and for the carriage of goods in respect of that trade approximately 77Ø% southbound. The rest is increases, it one can reasonably be expected that the containerised or Ro-Ro. operators of those additional services will consider the trade routes between Finland and Poland as 10.ÙThe Parties are currently the only providers of possible areas of expansion. transport services for containers, lorries and semi- trailers of the routes served by the Conference. Approximately 91Ø% of the northbound volumes and approximately 90Ø% of the southbound volumes THE PARTIES’ ARGUMENTS CONCERNING THE transported by the Conference are shipped under APPLICATION OF ARTICLE 85(3) annual contracts. 14.ÙUnder the arrangements described above, the 11.ÙAccording to the Parties, alternative routes to the Conference provides frequent, regular and efficient Conference trade between Finland and Poland liner services between Finland and Poland. The fact already exist. According to Finncarriers’ best that the Conference operates two vessels allows the estimates, approximately 20Ø000 tonnes of rail cargo Conference to maintain a high quality, reliable is transported annually from Finland to Poland by service for its customers. The Conference Agreement way of Russia. Additionally, alternative routes to enables the Parties to pool their resources and assets and from points in Finland and Poland exist via the and to take into account the special characteristics of Baltic (i.e. ferry from Helsinki to and by the trade between Finland and Poland, which road from Tallinn through the Baltic States to ultimately reduces costs to shippers and increases Poland and vice versa) and via (i.e. ferry efficiency. from Helsinki or Turku to Stockholm and further by land to /Malmö/Karlskrona/Karlshamn and 15.ÙThe benefits of the Conference should be considered further by ferry to Poland and vice versa). in the light of the dependence of Finland on its Moreover, Finncarriers considers that Gothenburg, seaborne trade and the particular challenges to the Felixstowe, Hamburg and Antwerp are alternative operators of the relevant services created by the ice ports to the ports served by the Conference in conditions in the winter months which increase costs Poland. and threaten the regular and efficient provision of services. 12.ÙThe Parties also consider that any shipping carrier operating within the Baltic region is an actual or 16.ÙReasons for exempting the joint service contracts potential competitor to the Conference in the include: Finland/Poland trade. The Conference Manager has identified, by way of example only, the following carriers as potential competitors: —Ùa shipper wishing to have both a weekly service and a service contract needs to have a contract —ÙUnity Line (Ystad-Swinoujscie) with both lines,

—ÙPolferries (Malmö-Swinoujscie, Oxelosund/ —Ùa joint contract gives the shipper the advantage Nynashamn-Gdansk) of not needing to plan in advance which week to send his goods —ÙLion Ferry (Karlskrona-Gdynia) —Ùany contractual claim could be made against the —ÙBaltic Line (Karlshamn-Gdynia) carriers on a joint and several basis, —ÙHarms (Hanko-Gdynia) —Ùsome shippers both import and export and wish to have the local expertise of both carriers. —ÙFinnlink (Naantali-Kapellskar)

—ÙViking Line (Helsinki/Turku-Stockholm) 17.ÙThe Conference faces competition from other operators of maritime and combined maritime/ —ÙSilja Line (Helsinki/Turku-Stockholm) inland transport services on alternative routes. The C 396/12 EN Official Journal of the European Communities 19.12.98

effect of such competition is to ensure that the accordance with which the Commission invites interested benefits arising from the Conference Agreement are parties to send their comments within 30 days of the date passed onto shippers. There are no governmental or of publication of this notice, quoting reference other restrictions which limit entry to the market. IV/36.844 to: Consequently, the Conference is subject to effective potential competition from other operators. European Commission, Moreover, as alternative routes are developed, Directorate-General for Competition, shippers will have increased choices for transporting Services their cargo. Transport and Transport Infrastructure Rue de la Loi/Wetstraat 200 B-1049 Brussels.

NOTICE Fax (32-2) 296Ø98Ø12 X.400: G=David; S=Wood; O=DG4; P=CEC; This notice is issued pursuant to the procedure estab- A=RTT; C=BE lished by Article 12 of Regulation (EEC) No 4056/86, in Internet: david.wood-dg4.cec.be