Top level executives of Lithuania’s railway company Lietuvos Geležinkeliai (Lithuanian Railways), including Arūnas Štaras, Lithuania’s Transport Vice-Minister and Lietuvos Geležinkeliai chairman, and Stasys Dailydka, the company’s CEO, met with PKN Orlen’s vice-president Slawomir Jedrzejczyk in Warsaw on Monday to discuss the logistics issues that have been outstanding for several years.
“Orlen puts forward a question on modification of terms for the transportation of cargo to Klaipėda – they want lower rates, it is their main question, as well as on the rate when transporting products to Latvia through Joniškis – they have been using this route after the dismantling of tracks to Renge in Latvia. We think that PKN Orlen should consider potential consequences of the European Commission’s investigation hence we have agreed that PKN Orlen will take a more serious look at the situation related with the investigation... We think that it is necessary to consider the entire environment and not just to demand lower rates,” Štaras told BNS.
If PKN Orlen withdrew its complaint from the Commission, it would not mend the situation, he said. However, the parties could seek to develop the terms of cooperation that would be long-term and fair.
“We have proposed to PKN Orlen to take a broader view of the problem, at the European level,” Štaras said.
Lithuania was concerned about the investigation, he said.
If the Commission found proofs of a cartel agreement, the potential fine to Lietuvos Geležinkeliai might reach up to 10 percent of the company’s annual turnover, Štaras said, adding that Lithuania believed there had been none of such agreements.
The Commission’s investigation is expected to be completed in summer or fall. If the findings are unfavorable to Lithuania, the case may be referred to the European Court of Justice, where the parties could reach a mutual deal or Lithuania could offer a compensation. The proceedings would take up to several years, Štaras said.
PKN Orlen has filed a complaint to the European Commission over the actions by Lietuvos Geležinkeliai, which allegedly affected the performance of Orlen Lietuva, the Lithuanian subsidiary of the Polish oil concern. In particular, PKN Orlen claims that the dismantling of tracks between Bugėniai and Renge has led to an increase in the company’s transportation costs and affected its export possibilities.
The Commission seeks to determine whether the Baltic railway companies might have made a cartel agreement. Unofficial sources say that such an agreement might have been made by the Lithuanian and Latvian railway operators.
