NatRoad has given its response to the proposed acquisition put forth by Transurban to the ACCC
The National Road Transport Association (NatRoad) has given its response after being asked by the Australian Competition and Consumer Commission (ACCC) to contribute to a review of a proposed Victorian acquisition.
NatRoad has opposed the proposed deal for tolling company Transurban to acquire Horizon Roads in Victoria, which operates Melbourne’s EastLink motorway.
NatRoad CEO Warren Clark says NatRoad opposed the deal due to the negative impact it would have on competition, opening the chance for higher toll charges to be passed onto road freight operators.
“In our opinion, the proposed acquisition will increase Transurban’s bargaining power and therefore result in a lack of price competition,” Clark says.
“We have strongly recommended that the ACCC consider the potential for increased toll charges and their impact on end consumers.”
Clark says that like in New South Wales, Transurban already operates a significant number of toll roads in Victoria.
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“Toll traffic data is crucial in competing for toll road development, ownership and operation,” he says.
“The purchase could also limit the Victorian government’s ability to influence or control future competitive processes for toll road concessions.”
Transurban provides electronic tolling and tag-issuing services under its Linkt brand and in Victoria has interests in CityLink and the West Gate Tunnel, which is currently under construction.
In NSW, NatRoad says Transurban has a near monopoly on toll roads in and around Sydney.
“With the election of a new government in NSW, we are expecting real toll relief for truck drivers in that state but the creeping rise in tolls is something that needs attention nationwide,” Clark says.
“We have urged the ACCC to carefully consider our submission and to prohibit the proposed acquisition.”