The Australian Competition & Consumer Commission (ACCC) has this week revealed concerns surrounding DP World Australia’s (DPWA) proposed acquisition of Silk Logistics Holdings (Silk).
According to ACCC Commissioner Dr Philip Williams, the ACCC has “heard concerns that DP World’s ownership of a national container transport provider is likely to reduce competition in the supply of container transport services. This could lead to higher prices and reduced quality for Australian importers and exporters.”
He said the ACCC’s review focused on DP World Australia’s ability and incentive to either increase terminal fees or worsen the quality of terminal services for container transport providers that compete with Silk, after the acquisition.
“We are also assessing whether DP World Australia, after acquiring Silk, is likely to offer below-cost transportation prices to importers and exporters if their containers are also picked up and dropped off at DP World Australia’s stevedoring terminals,” explained Williams.
“This is because a discounting strategy involving below-cost prices could reduce container transport competition allowing a combined DP World Australia and Silk to raise prices later.”
In addition, the ACCC said it is concerned that DP World Australia could be able to access and use commercially sensitive data about Silk’s rivals, in a way that damages competition.
DP World Australia operates container stevedores at the Ports of Botany (Sydney), Melbourne, Brisbane and Fremantle. DP World Australia on average, services approximately a third of the containers processed at these ports.
Silk is one of the only national door-to-door container logistic providers in Australia. It hauls import and export containers using trucks to and from the ports that DP World Australia is operational at. Silk operates 46 facilities across New South Wales, Victoria, Queensland, South Australia and Western Australia.
The ACCC is inviting submissions about the acquisition from interested parties by March 27, 2025 on the issues raised in its formal Statement of Issues.
In summary, the issues of concern to the ACCC for further investigation are:
Discrimination against rival container transport providers by increasing charges or worsening the quality of terminal services
Below-cost conditional discounts that have an exclusionary effect on rival container transport providers
Access to commercially sensitive information about its rivals’ operations and customers
Interested parties are invited to provide submissions by 5pm, March 27, 2025:
Responses may be emailed to mergers@accc.gov.au with the subject line: Submission re: DP World Australia’s proposed acquisition of Silk Logistics.
The ACCC is expected to make a final decision on the acquisition on June 5, 2025.
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