Sims says regulator will look at competition concerns affecting vulnerable and remote communities
Amid the fascination with Japan Post’s takeover of Toll, the Australian Competition and Consumer Commission (ACCC) has sounded a more grounded note on the proposed sale of much of Toll Marine Logistics (TML) to Sea Swift.
The sale was unveiled in November and involved the assets and business of Darwin’s Perkins Shipping that Toll had bought in 2009, minus the Dili-Darwin-Singapore service sold to ANL last July.
As part of the transaction, Toll Marine Logistics would acquire a 20 per cent of Sea Swift.
“As far as we are concerned, we pride ourselves on our customer service levels and this will not change” Sea Swift CEO Fred White said at the time.
ACCC’s review process began on December 9.
The subject of a ‘statement of issues’ (SoI) on competition issues relate to general freight operations for far north Queensland, Northern Territory and other coastal communities including the Torres Strait Islands.
The closing date for submissions is March 13 and a final decision due on April 16.
Many of these isolated or island communities are unable to receive freight by road at all or in any significant volume.
“The ACCC has received many submissions indicating that the proposed acquisition would result in significantly higher prices and diminished service levels, which may harm standards of living in the remote communities that are dependent upon sea freight,” ACCC Chairman Rod Sims says
“The ACCC is examining this closely. Most of the businesses and communities affected are heavily reliant on the services that Sea Swift and Toll provide, and for some communities it is the only way that basic supplies such as food and fuel can be transported,” Sims says.
“The ACCC is concerned that the proposed acquisition is likely to lead to significant price increases as it will result in a monopoly on many routes.”
The SoI can be found here.