ACCC asking questions

The proposed joint venture between Patrick Port Logistics and Australian Container Freight Services (ACFS) has prompted an investigation by the Australian Competition and Consumer Commission. The ACCC has said it is seeking the logistics industry’s views on the likely impact on competition of Patrick and ACFS entering into the agreed enterprise.
Both Patrick and ACFS are engaged in landside logistics, wharf cartage and depot services, container warehousing and distribution, and empty container park services. The ACCC is asking about whether Patrick and ACFS compete strongly with each other. It also wants to know what is the potential impact on prices and/or service quality. There are also concerns about vertical integration and the ability of others to compete with the joint venture.

 

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The ACCC is looking for a response by no later than 5pm on May 6 2015. Submissions may be emailed to mergers@accc.gov.au with the title: Submission re: Patrick Container Ports Pty Ltd proposed joint venture with Australian Container Freight Services Pty Ltd – attention
Sheridan de Kruiff and George Cunningham. The ACCC are also willing to talk over the telephone or in person, by contacting George Cunningham on (02) 9230 9138 or Sheridan de Kruiff on (07) 3835 4681.
Under the deal, Asciano will contribute the Patrick landside logistics business to the joint venture. This business involves the metropolitan road transportation of containers to and from container ports. Patrick has operations in Sydney, Melbourne, Brisbane , Adelaide and Fremantle. Services which are not part of the proposed joint venture include Patrick’s Terminals and Logistics business (stevedoring) and Pacific National ’s regional logistics business.
ACFS provides container warehousing, transport and freight advisory services in Sydney, Melbourne and Brisbane direct to large customers and to freight forwarders. Services to be incorporated into the joint venture are, ACFS’s container warehousing and transport business, located in Sydney, Melbourne and Brisbane. ACFS has also been selected as a new tenant of undeveloped land at Fremantle, scheduled for development to provide warehousing services and an empty container park.

 

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Author: Tim Giles

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