• President of UOKiK Tomasz Chróstny imposed a fine of over PLN 13.5 million on six manufacturers of wooden railroad sleepers.
• The entrepreneurs entered into a bid rigging for the delivery of products for PKP PLK.

The following entrepreneurs were fined: Kolejowe Zakłady Nawierzchniowe (Railroad Surface Plants) Bieżanów together with its subsidiaries - Trade-Port and Sleeper Treatment Plant in Czeremcha, as well as ThyssenKrupp GFT Polska, Track Tec and Sleeper Treatment Plant in Koźmin Wielkopolski. They all took part in a tender organized by PKP PLK for the supply of wooden railroad sleepers - i.e. wooden beams that support the rails - in 2014 and 2015. They were the only entrepreneurs in Poland who could have supplied this product to the ordering party. The tender was divided into two tasks, the results of which the bid riggers attempted to affect.

 “The evidence gathered during our proceedings clearly presents the mechanism of an illegal agreement The entrepreneurs have agreed among themselves which of them will take part in particular tasks under the tender and who will offer which amount. Therefore, not only the financial conditions were agreed upon, but also the distribution of the work, since the entities not selected in the tender were then to carry out the project together with those who were awarded the contract. All entrepreneurs who were then able to submit a bid took part in the bid rigging, which means that the ordering party was not able to choose the contractor in a fair manner,” says President of UOKiK Tomasz Chróstny.

The entrepreneurs agreed that ThyssenKrupp and KZN Bieżanów will form a consortium and together with Track Tec would bid for both tasks. The remaining entrepreneurs were supposed not to participate in the tender as the participation of a larger number of bidders would mean the need to compete in the electronic auction. The first task was to be won by Track Tec and the second by ThyssenKrupp-KZN Bieżanów consortium. The total number of sleepers delivered under both of these tasks was to be divided in the ratio: 45 percent for Track Tec and 55 percent for the ThyssenKrupp-KZN Bieżanów consortium. Moreover, prices of sleepers in the submitted bids were to increase in relation to the 2013 prices by 3 percent for deliveries in 2014 and by 5 percent in 2015.

Entities that did not participate in the tender were to participate in the contract delivery. As part of the second task, the actual deliveries were to be made in equal parts by the Treatment Plant in Koźmin and the Treatment Plant in Czeremcha. The supply of equipment and additional accessories for sleepers (e.g. bolts, nuts) for both tasks was to be carried out jointly with Trade-Port.

Settlements were made in 2013-2014 during meetings in hotels and restaurants in Katowice, Cracow and Warsaw as well as during telephone calls. The initiators of the bid rigging were Track Tec and KZN Bieżanów. Initially, the settlement concerned only these entities, however, later on they persuaded other entrepreneurs to participate.

The aim of the bid rigging was to avoid competition in bidding for the order and to ensure a higher price for order delivery. It is worth mentioning that this plan did not work out. PKP PLK cancelled the tender due to suspected bid rigging.

President of the Office Tomasz Chróstny, imposed fines on participants to the bid rigging in the total amount of nearly PLN 13.5 million. The decision is not final and may be appealed against to court. The following sanctions were imposed on individual entrepreneurs: 

• Track Tec from Warsaw - PLN 7,579,902.27
• Kolejowe Zakłady Nawierzchniowe “Bieżanów”  - PLN 2,948,654.16
• Sleeper Treatment Plant in Czeremcha - PLN 1,543,545.62
• Sleeper Treatment Plant in Koźmin Wielkopolski - PLN 1,312,465.85 
• ThyssenKrupp GFT Polska - PLN 83,269.76
• TRADE-PORT from Katowice - PLN 4,484.25

If you are aware of any illegal agreements at your former or present workplace, please report them to UOKiK. The Office runs a program of acquiring information from anonymous whistle-blowers. Visit https://konkurencja.uokik.gov.pl/sygnalista/ and fill out a simple form. The system we use guarantees full anonymity, also towards the office itself.

Anyone who has suffered loss as a result of a breach of competition law may file a civil lawsuit against any of the entities that have broken the law.

Additional information for the media:

UOKiK Press Office
Pl. Powstańców Warszawy 1, 00-950 Warszawa, Poland
Phone +48 695 902 088, +48 22 55 60 246
E-mail: biuroprasowe@uokik.gov.pl
Twitter: @UOKiKgovPL