South-Caucasian railways’ dominance in railway area recognized

YEREVAN, March 12. /ARKA/. Armenian State Commission for Protection of
Economic Competition has recognized South-Caucasian Railways’ dominance
in railway area. The Commission says that the company’s freight traffic
totaled 402 million ton/km in June/Dec 2008.

Of them, 58% were imports, 26% exports and 15% domestic freight
traffic. The Commission also said passenger traffic exceeded 20 million
passenger/kilometers in June/Dec 2008.
Of them, 59% were routes inside the country.

Ashot Shahnazaryan, chairman of the commission, said that after
entering Armenian market the company increased fees for cargo
transportation by 100% and inside transportation by 20%.

`Later, the company lowered shipment fees by 30%’, he said adding that
the commission must be informed about any rise in shipment fees. Ilya
Kelperis, chief of commercial shipment unit of the South-Caucasian
Railways, said the freight shipment fees were changed in conformity
with international standards.

He also pointed out that before the company took over the railway, it
received no financing and was badly dilapidated and dysfunctional. He
said that after the railway was handed over to the company, expenses
grew and the infrastructure is being put in order.

The South-Caucasian Railway CJSC is concession manager of the Armenian
Railway Company. South-Caucasian Railway, fully owned by the Russian
=0
ARailways Company, listed in its fixed assets the rolling stock of the
Armenian Railways on June 1, 2008, under a concession contract of
February 13, 2008. M.V.-0–