The Hellenic Competition Commission will convene on Tuesday, October 8th 2024, to examine –following the relevant Statement of Objections – the notified concentration under Article 8 of Law 3959/2011 concerning the creation of a joint venture by the companies “HELLENIC TRAIN S.A.” (HELLENIC TRAIN) and “DAMCO ENERGY S.A. Company of Energy Projects Development Consulting and Equipment Services" (DAMCO) for the operation, maintenance, exploitation, completion of project studies, project implementation and supply of equipment for the Rail Freight Station and Shunting Yard complex (Freight hub) in Thriasio Pedio (Thriasio II).
HELLENIC TRAIN (former TRAINOSE S.A.) is a member of the Ferrovie dello Stato Italiane (FS) Group (FSI Group). It provides, inter alia, freight transport services through the national rail network for domestic and foreign customers and is the only rolling stock maintenance provider in Greece.
DAMCO belongs to the Kopelouzos Group. The company is mainly active in the energy sector participating in projects involving the construction and supply of equipment for (thermal power and hydro-electric) power plants, as well as in the development and operation of infrastructure projects.
Thriasio II is a “key”-project that will provide a freight terminal hub in Greece with unique characteristics, which will serve the bimodal (combined road/rail) freight transport model and is expected to contribute to the increase in the total volume of rail freight transport, considering that the development of bimodal transport, notably that including rail transport, presents strong elements of economic benefit as well as of environmental sustainability.
Hellenic Train currently holds a very high market share in the rail freight service market and enjoys a monopoly position in the rolling stock maintenance market. Through the above concentration, the company is vertically integrated in another market of pivotal importance in the transport "ecosystem", as it gains control over the unique infrastructure for providing services of bimodal freight terminals in the Greek territory.
According to the SO, the acquisition of joint control over Thriasio II is expected to substantially restrict competition, in particular by strengthening Hellenic Train's dominant position in the rail freight transport market through competitor foreclosure practices.
In particular, it is estimated that the consortium will have the ability and incentive to put Hellenic Train's competitors in the rail freight market at a disadvantage, with adverse anti-competitive effects. Foreclosure of competitors is deemed likely either through making their access to the services of Thriasio II more difficult (e.g. by providing these services with less favorable service conditions, deterioration of quality in the services provided, delays) or by offering more favorable trading conditions (such as discounts or faster service) to common customers, in particular freight forwarders, who are provided with transport services by Hellenic Train.
It is also likely that after the implementation of the concentration, Hellenic Train may gain access to commercially sensitive information, which is expected to lead to anti-competitive effects on the relevant rail freight market.
Therefore, it is proposed that the Hellenic Competition Commission approves the transaction subject to a set of appropriate and sufficient commitments (remedies), further proposed by the notifying undertaking to address any competition concerns raised by the concentration.
The Statement of Objections is not binding on the HCC, which will decide on the basis of the available facts as well as the arguments put forward by the parties.
