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Activity Is Owning and Managing Ferries and Operating

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Activity Is Owning and Managing Ferries and Operating 14 . 2 . 92 Official Journal of the European Communities No C 36/ 5 Notice pursuant to Article 12 (2) of Council Regulation (EEC) No 4056/86 concerning Case No FV/33.626 — Agreements establishing joint transhipment services between Helsingborg and Helsingor (92 /C 36/04) 1 . On 11 July 1990 the parties referred to below being provided separately by each of the companies on applied to the Commission , in accordance with Article the route in question . 12 ( 1 ) of Regulation (EEC) No 4056/ 86 , for exemption under Article 85 (3) of the EEC Treaty in respect of the agreements described below . In a second agreement concluded at the same time by DSB and SJ, the latter guarantees that SFL will honour its commitments in accordance with the provisions of the The parties first agreement . 2 . The parties are 3.1 . DSB/SFL agreement of the one part of the other part Danske Statsbaner Statens Järnväger (SJ) This agreement enters into force on the date of (DSB) Huvudkontor signing and cannot be terminated before 1 January Rederidivisionen 10550 Stockholm 1997 , after which 12 months' notice of termination Sølvgade 40 is required . 1349 Copenhagen K AB Swedcarrier Box 417 By coordinating the ferry services currently being 10125 Stockholm provided separately by the parties , it is designed to increase profitability on the Helsingborg-Helsingor Scandinavian Ferry Lines route and thus to establish a satisfactory business AB (SFL) activity in the long term . It supplements existing Box 612 efforts to promote cooperation between DSP and SJ 25106 Helsingborg in the field of rail transport and ferries operating in the Oresund . DSB is a public enterprise responsible for providing rail transport services in Denmark . It also operates ferries The parties have agreed that SFL and DSB will set from Denmark . up a joint venture, with a capital of Dkr 5 million subscribed equally by DSB and SFL, for the purpose of operating a joint ferry service at the very latest SFL is a wholly owned subsidiary of AB Swedcarrier, by the time the new terminals to be built in which in turn is wholly owned by SJ . SFL took on the Helsingborg and Helsingor are ready . name of 'SweFerry AB' when SJ restructured . SweFerry's principal activity is owning and managing ferries and operating ferry links from Sweden , as well as other, The parties undertake , against payment of a fee , to complementary activities . provide the new company with the services it needs to operate the route . DSB and SFL will thus each SFL, on the one hand , and DSB and SJ, on the other, make available to it two ferries currently sailing on operate their own separate ferry services between the that route . They will also provide it with the means Danish port of Helsingor and the Swedish port of of supplying ticketing services and technical assist­ Helsingborg from separate terminals in both ports . ance at the Helsingor and Helsingborg terminals . The agreements DSB and SFL have also agreed on an order of priority for the bringing into service of new capacity 3 . On 29 March 1990 the parties signed two by the company . agreements on the provision of ferry services between Helsingborg and Helsingor. Catering and kiosk sales services on the DSB and SFM ferries , which will be made available to the A first agreement concluded between DSB and SFL company, are not, however, covered by the concerns the joint operation of ferry services currently agreement. No C 36/6 Official Journal of the European Communities 14 . 2 . 92 The company will be responsible for marketing the The relevant geographic market would comprise all Helsingor-Helsingborg service , for setting ticket transport services between Norway, Sweden and prices and discounts, and for ensuring the quality of Denmark, on the one hand , and Germany, on the other, service on board and in the terminals . It will draw i.e. the Skagerrak, the Kattegat and the Baltic . The up the ferry timetables and allocate departure slots parties point out that the Helsingborg-Helsingor service for ferries operated by SFL and DSB . Its revenue not only caters for traffic between Sweden and Denmark will accrue from all ticket sales for the route in but also for a major share of the transit traffic between question . Norway, Sweden and continental Europe . The agreement provides that, for 10 years , the The parties apparently compete with a number of other company will pay a fee in exchange for the right to lines on this market, which includes the Helsingborg­ operate the ferry service . Helsingor route . In 1989 they were said to be in com­ petition with 26 other services operated by 10 ferry companies in the trade between Sweden/Norway and The company is required to tranship railway Denmark . carriages and wagons for DSB and SJ . If either of the two parties wishes to sell its shares in In the trade between Scandinavia and West Germany, the company, the other party has a preferential right they apparently competed against 16 other services to purchase them . operated by 13 companies . Each of the parties may immediately terminate the The parties' market shares of total transhipments agreement if the other party no longer directly or between Sweden/Norway and Denmark in 1989 were indirectly holds at least 67 % of the voting rights reported as being of the order of 50 % for passengers , and equity of the company through which it is a passenger cars , coaches and lorries . Their share of the shareholder in the joint venture . market for transhipments between Scandinavia and West Germany was about 30 °/o . 3.2 . DSB/SJ agreement The parties consider that, on a cautious estimate , the turnover generated by the Helsingor-Helsingborg service Under this agreement, which is to enter into force represents only between 2,5 and 3 % of the total on 1 January 1991 , SJ guarantees DSB that, for as turnover of the abovementioned services . long as it holds a majority of the shares and voting rights in SFL, the latter will honour its commitments in accordance with the provisions of the agreement concluded at the same time with DSB concerning The parties claim , moreover, that the transhipment the joint operation of a ferry service between market is about to undergo a radical change following Helsingborg and Helsingor. The agreement contains the establishment of the single market and the resulting provisions identical to those of the DSB/SFL abolition of tax-free sales on ferries . Most transhipment agreement as regards termination by either of the traffic will abandon transit through Denmark in favour parties in the event of a major change in the holding of direct routes between Sweden and Germany . The of the other party in the capital of the joint venture . parties also point out that the future market will be affected by the plan for a fixed link across the Oresund which will create considerable over-capacity in the It also stipulates that ferry and passenger train relevant market . timetables are to be coordinated to reduce waiting times to a minimum . According to the parties , there are no barriers to entry for would-be operators of ferry services , this being borne The market out by the fact that DANO Linjen/VR Shipping, a competitor of DSB for several years on the Storebaelt , introduced a new service between Copenhagen/Tuborg 4 . According to the parties to the agreement, the and Helsingborg in April 1990 . relevant market is the market for passengers , passenger cars , coaches , lorries and railway carriages and wagons , i.e. the various types of transport provided by the parties Furthermore , they consider that ferry services , including on the Helsingborg-Helsingor route . Another ferry the service covered by the present agreement, are to service (passengers only) is provided on the same route some extent facing mounting competition from air by the Sundbusserne company . transport, particularly for the carriage of passengers . 14 . 2 . 92 Official Journal of the European Communities No C 36/7 The exemption (in) long-term development of the link between Helsingborg and Helsingor will benefit 5 . It must be considered that the agreements in consumers as the proposed cooperation will question have the effect inter alia of restricting the ensure rapid and high-quality transhipment of respective freedom of the parties to fix independently passengers , railway carriages and wagons , prices other than those laid down by the company for coaches and lorries ; the route in question and to adopt different conditions of carriage or change the timetable of services provided by the company . (iv) the agreements will have beneficial effects on physical planning and hence on the environment in Helsingborg and Helsingor ; In particular, therefore , they restrict competition on prices ; they limit and control the supply of transport services by the parties on the route in question . (v) the joint operation introduced by the agreements will enable the company to improve planning as According to the parties , the agreements nevertheless regards capacity, and this will ultimately mean qualify for exemption under Article 85 (3) for the savings for consumers . following reasons . 5.1 . The agreements contribute to improving the 5.3 . All the restrictions of competition imposed on the production or distribution of goods or to promoting parties by the agreements are essential to attain the technical or economic progress in as much as : objectives referred to at point 5.1 for the following reasons : joint operation of the Helsingborg-Helsingor route : (i) the planned investments in the
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