DP World Australia’s proposed acquisition raises competition concerns

SYDNEY: The Australian Competition and Consumer Commission (ACCC) has raised preliminary concerns over DP World Australia’s proposed acquisition of Silk Logistics, a major player in national container transport services. The acquisition could potentially result in reduced competition and higher costs for Australian importers and exporters.

DP World Australia, which operates container stevedores at the Ports of Botany (Sydney), Melbourne, Brisbane, and Fremantle, currently services approximately one-third of the containers processed at these ports. Silk Logistics, known for its national door-to-door container logistics, utilizes trucks to haul import and export containers to and from these ports.

The ACCC’s primary concern is that the acquisition may lead to a significant reduction in competition in the container transport services market. “We have heard concerns that DP World’s ownership of a national container transport provider is likely to reduce competition in the supply of container transport services,” ACCC Commissioner Dr. Philip Williams said. “This could lead to higher prices and reduced quality for Australian importers and exporters.”

The ACCC is also reviewing DP World Australia’s ability to increase terminal fees or lower the quality of terminal services for competing container transport providers post-acquisition. Additionally, there is concern that DP World Australia could use commercially sensitive data about Silk’s rivals to damage competition.

Submissions from interested parties are being sought by the ACCC, with the deadline set for March 27, 2025.