How to Transport Perishable Freight

13.05.2008 (18:05)

In 2007, 11 mln tons of perishable cargoes were transported on the OAO RZD network including 4 million tons carried in universal rolling stock. “Such distribution of cargo reveals shortcomings in the current normative and legislative base regulating transportation of these freights”, Nikolay Averkov, General Director of Refservise OJSC told during a round table “Perishable goods: features and difficulties”.

Recently, the volume of perishable cargo transportation in railway refrigerator rolling stock increased. At the same time, this branch has hard times, according to Ildus Halikov, General Director of “Refperevozki Agency”. “Though the volume of cargoes transported by our company remains the same, but the tendencies in perishable cargoes transportation market start to worry us”, he noted.

According to the round table participants, outdated normative and legislative base remains one of the main obstacles for perishable cargoes rail transportation.

Dmitry Golopolosov, Deputy Head of Railway Transport Department Control and Supervision in Transport and Communication Sector Administration, the RF Federal Antimonopoly Service told about the problem of discrepancy of standard base to current market requirements. “If these risks had been considered, before Refservice OJSC started its work as an independent managing subject, we would have never discuss this problem”, he noted. According to Mr. Golopolosov, TransContainer faced similar problems in its time.

“TransContainer had to work hard to improve the normative and legislative base, allowing to create normal conditions to compete on the market”, Yury Popov, Deputy CEO of TransContainer OJSC agreed with representative of the Federal Antimonopoly Service.

The main subject of the discussion was the following question: can universal rolling stock, a wagon warmed with foam plastic panels or a container, provide required temperature mode? In particular, there was discussion about the statement of the Russia’s Federal Antimonopoly Service which declared in March that OAO RZD had violated the antimonopoly law when Heineken Brewery Company had not coordinated special conditions of beer transportation in winter 2007-2008. Consignors tried to prove they had been right in the Federal Antimonopoly Service. They said that OAO RZD infringed upon their interests and tried to make them pay more for transportation services by means of forced usage of special rolling stock.

It is known, that it is neither the first nor the last case. For example, in October 2007 OAO RZD was accused as infringer of the antimonopoly law. That case also concerned "beer" business. However Russian Railways OJSC proved its right again.

The decree of the Federal Antimonopoly Service on the deal of non-agreement of special conditions of beer transportation in summer period of 2007 was declared illegal by the resolution of the Nineth Arbitrage Court of Appeal. The Court noted that the Federal Antimonopoly Service should analyze the whole market of beer transportation carried out by both large brewing companies owning wagons and ones which transport their goods in special rolling stock according to Regulations of perishable cargoes transportation. This remark means that special conditions providing for large cargo owners put them in better position in comparison with other brewing companies.

In the framework of the round table railwaymen and antimonopoly department tried to understand, who’s right. We should remind that according to operating standard documents beer transportation should be carried out in refrigerator rolling stock in summer and winter months. Thus this perishable cargo can be transported in universal covered wagons in other months. At the same time it is known, that there is lawful possibility of beer transportation in universal rolling stock if a carrier and a consignor agree on “special condition” of the transportation.

However the transportation contract “on special conditions” is not public, unlike the contract on the conditions provided by regulations, and OAO RZD may not conclude it. However brewing companies try to get “special conditions” for production transportation. Alexander Kazantsev, the Head of OAO RZD’s Department of commercial operation in cargo transportation sector, reminded that contract on “special conditions” transportation is not public. “In other case a transport company would be obliged to conclude contracts on any conditions, including ones which don’t meet the transportation regulations requirements and fail to guarantee safety of traffic, cargoes, rolling stock, ecological and sanitary-and-epidemiologic safety”, he noted.

“Neither a covered wagon, nor a universal container can provide recommended temperature mode. But it is not the most important problem”, Nikolay Averkov noted. “The sanitary regulations on the freight rail transportation noted that transport vehicles should be cleaned (floor and walls of the refrigerator wagon) and disinfected after unloading of foodstuff. According to article 19 of the Federal Law “On quality and safety of foodstuff” special equipped transport vehicles having certificate of hygiene should be used for foodstuff transportation. This point is included in the Regulations of perishable cargoes rail transportation”.

However, according to current Regulations of perishable cargoes transportation only refrigerator wagons should be cleaned. OAO RZD has not technical basis for universal wagons cleaning.

“It is necessary to toughen current standard-legal documents toughening and probably prohibit foodstuffs transportation in covered wagons and universal containers because this transportation is carried out with violation of sanitary regulations”, N. Averkov noted.

“Certainly, there are problems in the market, including the lack of rolling stock. It is necessary to solve technologies problem”, D.Golopolosov said.

“It will be possible to speak about the prospect of perishable cargoes transportation in special rolling stock when the Government obliges cargo owners to transport foodstuffs according to world standards. The international regulations are stronger than Russian ones”, Nikolay Averkov emphasized. “Then special rolling stock operators will be able to recommence manufacture of new generation of refrigerator wagons”.


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