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Industry feedback sought on potential Qube acquisition

Qube’s potential acquisition of MIRRAT has highlighted preliminary competition concerns from the ACCC

The ACCC is seeking industry feedback on preliminary competition concerns raised by the potential acquisition of Melbourne International RoRo & Auto Terminal Pty Ltd (MIRRAT) by Qube Holdings Limited.

The concerns have been raised due to the operation of automotive cargo terminals at the Port of Brisbane and Port Kembla and a general cargo terminal at Appleton Dock at the Port of Melbourne by Qube’s wholly owned subsidiary, Australian Amalgamated Terminals Pty Ltd (AAT).

MIRRAT operates the automotive Roll-on/Roll off terminal at Webb Dock West in Melbourne. The proposed acquisition of MIRRAT by Qube would permit Qube to acquire sole operating rights for roll-on roll-off trade through Port of Melbourne.

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Qube is Australia’s largest provider of import and export logistics services including port-related activities of terminal management, stevedoring, processing, pre-delivery inspection and delivery.

“The proposed acquisition would result in Qube, which is one of Australia’s largest integrated terminal and freight logistics providers, owning a further interest in a critical component of the automotive delivery supply chain at the Port of Melbourne,” ACCC Commissioner Dr Phillip Williams says.

“We are concerned the proposed acquisition may have a significant effect on competition in downstream services such as automotive stevedoring and pre-delivery inspection.

“We are now seeking feedback on both the preliminary competition concerns associated with the acquisition identified in the Statement of Issues and the proposed undertaking, which has been put forward by Qube.

“The ACCC is concerned if the transaction goes ahead Qube would be operating the terminal while also being in active competition with other automotive stevedores or PDI providers.

Dr Williams also stressed that although the ACCC is investigating potential competition concerns it does not mean any court-enforceable undertaking would be accepted,

“While the ACCC has decided to publicly consult on the undertaking, this should not be interpreted to mean that this or any other undertaking will ultimately be accepted.”

Qube’s proposed undertaking, which would vary the current court-enforceable undertakings in place at Port Kembla and Port Brisbane would:

  • Require AAT to not discriminate between terminal users in favour of its own interests in the automotive supply chain by providing for certain price and non-price dispute resolution processes, ring fencing certain confidential information and report periodically on its own compliance with the undertaking.
  • Provide independent oversight (including by an independent auditor).
  • Impose restrictions on AAT’s ability to introduce or change certain tariffs.

The Statement of Issues and proposed undertaking is available on the ACCC’s public register here. Submissions in response to the Statement of Issues are invited until a deadline of November 7, 2024.

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