The Australian Competition and Consumer Commission (ACCC) has started a public review of DP World Australia’s proposed acquisition of Silk Logistics.
The ACCC is seeking views from Container Transport Alliance Australia (CTAA) companies and other interested parties in the container logistics chain on the proposed acquisition and how competition in the industry may be affected.
In particular, the ACCC is seeking views on:
- The extent to which a combined DP World Australia/Silk would have the ability and incentive to favour its own port logistics services and/or limit rival suppliers’, such as landside transport operators or port logistics services providers, ability to provide a competitive offering at any of the relevant ports, and
- Whether the proposed acquisition would result in a loss of competition at any level of the container supply chain.
The ACCC open public letter poses a series of questions to which they are seeking feedback, including:
- DP World Australia’s ability to give preferential treatment to its associated landside transport services (i.e. favourable Vehicle Booking System slot allocations or the non-payment or discounted payment of Terminal Access Fees (TACs) or VBS-related and ancillary terminal charges); and
- Ensuring that Silk is treated as a third party in obtaining access to a DP World Australia container terminal on the same terms as DP World Australia’s associated landside transport business
The letter also seeks comments on the extent to which the alignment between DP World Australia (which operates container terminals and empty container parks) and Silk’s port logistics business would result in DP World Australia having a greater ability and incentive to bundle container stevedoring services with logistic services and the competition impact this may have.
Further details can be found on the ACCC public register, with submissions closing by 5pm, December 23.
Submissions can be made on a confidential basis.
Shares in Silk Logistics surged more than 40 per cent immediately after DP World Australia announced a $174.5 million takeover offer for the port-to-door logistics group last month.