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Rail Transport 2021 Rail Transport 2021 Rail Transport 2021 Transport Rail Rail Transport 2021 Contributing editor Matthew J Warren © Law Business Research 2020 Publisher Tom Barnes [email protected] Subscriptions Claire Bagnall Rail Transport [email protected] Senior business development manager Adam Sargent 2021 [email protected] Published by Law Business Research Ltd Contributing editor Meridian House, 34-35 Farringdon Street London, EC4A 4HL, UK Matthew J Warren The information provided in this publication Sidley Austin LLP is general and may not apply in a specific situation. Legal advice should always be sought before taking any legal action based on the information provided. This information is not intended to create, nor does receipt of it constitute, a lawyer– Lexology Getting The Deal Through is delighted to publish the third edition of Rail Transport, client relationship. The publishers and which is available in print and online at www.lexology.com/gtdt. authors accept no responsibility for any Lexology Getting The Deal Through provides international expert analysis in key areas of acts or omissions contained herein. The law, practice and regulation for corporate counsel, cross-border legal practitioners, and company information provided was verified between directors and officers. July and August 2020. Be advised that this Throughout this edition, and following the unique Lexology Getting The Deal Through format, is a developing area. the same key questions are answered by leading practitioners in each of the jurisdictions featured. Our coverage this year includes new chapters on the European Union and Singapore. © Law Business Research Ltd 2020 Lexology Getting The Deal Through titles are published annually in print. Please ensure you No photocopying without a CLA licence. are referring to the latest edition or to the online version at www.lexology.com/gtdt. First published 2018 Every effort has been made to cover all matters of concern to readers. However, specific Third edition legal advice should always be sought from experienced local advisers. ISBN 978-1-83862-393-7 Lexology Getting The Deal Through gratefully acknowledges the efforts of all the contribu- tors to this volume, who were chosen for their recognised expertise. We also extend special Printed and distributed by thanks to the contributing editor, Matthew J Warren of Sidley Austin LLP, for his continued assis- Encompass Print Solutions tance with this volume. Tel: 0844 2480 112 London August 2020 Reproduced with permission from Law Business Research Ltd This article was first published in September 2020 For further information please contact [email protected] www.lexology.com/gtdt 1 © Law Business Research 2020 Contents Global overview 3 Mexico 48 Matthew J Warren Eduardo Bravo Senderos, Jorge Guadarrama-Yañez, Luis Amado, Sidley Austin LLP Mario Facio Salazar and Pamela Lemus Baker McKenzie Belgium 5 Michael Jürgen Werner Netherlands 56 Norton Rose Fulbright V J A (Viola) Sütő LegalRail Canada 12 Douglas Hodson QC, Kristen MacDonald, Ryan Lepage Poland 63 and Marek Coutu Marcin Bejm and Mikołaj Markiewicz MLT Aikins LLP CMS Cameron McKenna Nabarro Olswang LLP European Union 19 Russia 68 Tom Marshall, John Williams, Patrick Mitchell, Oliver Grabowski, Karina Chichkanova and Valentin Yurchik Tim Briggs and Max Kaufman Dentons Herbert Smith Freehills LLP Singapore 75 Germany 26 Adrian Wong and Jacob Quek Michael Jürgen Werner CMS Holborn Asia Norton Rose Fulbright United Kingdom 81 India 34 Martin Watt, Jonathan Smith, Rebecca Owen-Howes Ashish Suman, Kartikeya GS and Vishnu Sudarsan and Zara Skelton J Sagar Associates Dentons Japan 41 United States 91 Naoki Iguchi Matthew J Warren, Donald H Smith, Marc A Korman Nagashima Ohno & Tsunematsu and Morgan Lindsay Sidley Austin LLP 2 Rail Transport 2021 © Law Business Research 2020 Russia Karina Chichkanova and Valentin Yurchik Dentons GENERAL Regulatory bodies 4 Which bodies regulate rail transport in your country, and under Industry structure what basic laws? 1 How is the rail transport industry generally structured in your country? The following governmental bodies regulate rail transport: • Ministry of Transport of the Russian Federation: the federal executive The rail transport industry in Russia is divided into three groups: body for transport, including rail transport. The Ministry of Transport • rail transport for public use, which is the rail infrastructure, rolling develops governmental policy and regulates, inter alia, rail transport. stock and other property serving the rail transport needs of indi- • Federal Agency of Rail Transport (FART): a federal executive body viduals, legal entities and the state based on a public (standard under the authority of the Ministry of Transport, which renders state form) contract, as well as for other related works (services) in services and manages state property in the area of rail transport. connection with such transport; Among other things, FART adopts decisions on the commissioning of • rail transport for non-public use, which is railways for non-public railway stations and public-use railways, and keeps track of railway use, buildings, rolling stock (in certain cases) and other property rolling stock and containers by number. serving the needs of individuals and legal entities for works or • Federal Service for Supervision in the Sphere of Transport (FSSST): services in non-public places based on contracts or for their own a federal executive body under the authority of the Ministry of purposes; and Transport performing control and supervisory functions in the trans- • technological rail transport of organisations, which is the rail trans- port sector, including rail transport. port of organisations that transport goods within the territories of • RZD is given certain regulatory functions, for instance, issuance of the organisations, and carry out initial and tail-end operations with technical conditions and approval of design documentation for the railway rolling stock for the organisations’ purposes. construction of a new railway which connects with RZD railway infrastructure. Ownership and control 2 Does the government of your country have an ownership The key Russian regulatory acts relating to rail transport are: interest in any rail transport companies or another direct role • the Federal Law ‘On railway transport in the Russian Federation’ (the in providing rail transport services? Federal Law on Rail Transport); • the Federal Law ‘Rail Transport Charter of the Russian Federation’; and Almost all rail infrastructure related to public use rail transport is owned • by-laws, including Russian government regulations. by the Russian Railways Joint Stock Company (RZD). Rail operations over that infrastructure are typically performed by RZD and its subsidi- MARKET ENTRY aries, while the market share of other rail operators is relatively low (except the freight containers operators market). Regulatory approval The Russian Federation owns 100 per cent of the shares in RZD, 5 Is regulatory approval necessary to enter the market as a which was established by the Russian Government Regulation ‘on the rail transport provider? What is the procedure for obtaining establishment of Russian Railways Joint Stock Company’. In addition, approval? RZD has a number of affiliated companies in the different sections of the railway services market. The general requirements to start operations as a rail transport provider Non-public-use rail transport and technological rail transport are are stipulated in the Federal Law on railway transport and include the typically privately owned and operated by the owners. following: • obtaining a licence, if the operations must be licensed; 3 Are freight and passenger operations typically controlled by • owning or being otherwise entitled to possess rolling stock; separate companies? • having qualified employees; and • having an executed agreement for railway infrastructure use (if RZD controls a huge part of all rail operations. It has a strong monopoly applicable). on passenger operations on the public-use railways, while the pres- ence of the private rail service providers on the freight operations The following operations must be licensed: market is relatively high. In addition, RZD has a small presence on • passenger rail transport; the non-public-use railway freight market (the industrial rail transport • hazardous materials and goods transport; and enterprise section). • handling of hazardous materials and goods. 68 Rail Transport 2020 © Law Business Research 2020 Dentons Russia The rail transport provider must obtain the respective licence from the Specific rules are stated in the Federal Law on Rail Transport. FSSST or its local offices. The list of documents required for the licences Non-public-use railway construction must be approved by the govern- is stipulated by the Government Regulation on the licensing of certain ment of the Russian constituent entity in which the railway is located. operations on rail transport. The licence fee stipulated by the Tax Code A special commission handles commissioning of the non-public-use is relatively low. Licences are issued for unlimited terms. railway in accordance with the Federal Law on Rail Transport. There are also different procedures for situations when and if 6 Is regulatory approval necessary to acquire control of an the constructed railway connects with non-public-use railways or existing rail transport provider? What is the procedure for public-use
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