Australia’s competition watchdog, the ACCC, is set to review the proposed acquisition of Silk Logistics by DP World Australia.
On November 11th 2024 it was announced that DP World Australia would acquire a 100 per cent stake in Silk Logistics by means of a scheme of arrangement, with the ACCC opening its review into the acquisition on December 9.
Silk Logistics’ share price surges over 40 per cent in the immediate aftermath of the announcement of the $174.5 million acquisition.
The review is calling on views from Container Transport Alliance Australia (CTTA) companies and other interested parties in the container logistics chain on the proposed acquisition, and how competition in the industry may be impacted.
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 open public letter contains a series of questions to which the ACCC is seeking specific 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.
Submissions close at 5pm on December 23rd, with further details available here.
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