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Schenker unit fined while K+N gets off despite colluding in rail cartel
THE European Commission (EC) has fined DB Schenker and Express Interfracht (EXIF) - now rebranded Rail Cargo Logistics - a total of EUR49.1 million (US$53.2 million) for marketing a rail cartel in western and central Europe.
Kuehne + Nagel (K+N), also part of the cartel, avoided paying a EUR62 million fine by turning informer.
The EC reduced the penalties for DB Schenker and EXIF in exchange for their cooperation, London's freightweek reported.
The EC said the two forwarders and Austrian railway subsidiary EXIF fixed prices and allocated customers for their Balkan train and Sop train services in Europe for eight years from July 2004 to June 2012.
The EC said the fines ensured "an appropriate level of deterrence while remaining proportionate to the infringement," and were set on the basis of the Commission's 2006 guidelines on fines.
K+N declined to comment on the case. DB Schenker referred questions from Lloyd's Loading List to Deutsche Ban抯 corporate compliance department, which said it was checking with its lawyers before responding. However, a spokesman clarified that the case related to the Austrian entity of its DB Schenker Logistics business, not to its rail business.
The company also issued the following statement:
"The DB Group is currently evaluating possible damage claims against them. Should customers of DB Schenker have legitimate claims for damages based on the facts established by the EU Commission, we are of course open to discussions with them."
Competition commissioner Margaret Vestige said: "I find it very disappointing that a project to enhance transport efficiency and promote environmentally friendly cargo transport was derailed into a cartel. The European Union needs rail cargo markets to function efficiently on the basis of effective competition and not to be hijacked by vested interests to the detriment of customers."
Kuehne + Nagel (K+N), also part of the cartel, avoided paying a EUR62 million fine by turning informer.
The EC reduced the penalties for DB Schenker and EXIF in exchange for their cooperation, London's freightweek reported.
The EC said the two forwarders and Austrian railway subsidiary EXIF fixed prices and allocated customers for their Balkan train and Sop train services in Europe for eight years from July 2004 to June 2012.
The EC said the fines ensured "an appropriate level of deterrence while remaining proportionate to the infringement," and were set on the basis of the Commission's 2006 guidelines on fines.
K+N declined to comment on the case. DB Schenker referred questions from Lloyd's Loading List to Deutsche Ban抯 corporate compliance department, which said it was checking with its lawyers before responding. However, a spokesman clarified that the case related to the Austrian entity of its DB Schenker Logistics business, not to its rail business.
The company also issued the following statement:
"The DB Group is currently evaluating possible damage claims against them. Should customers of DB Schenker have legitimate claims for damages based on the facts established by the EU Commission, we are of course open to discussions with them."
Competition commissioner Margaret Vestige said: "I find it very disappointing that a project to enhance transport efficiency and promote environmentally friendly cargo transport was derailed into a cartel. The European Union needs rail cargo markets to function efficiently on the basis of effective competition and not to be hijacked by vested interests to the detriment of customers."
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