Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) continue to lead industry's advocacy for fair, transparent, and competitive supply chains to ensure cost-effective movement of goods.
Vertical Integration
While vertical integration can provide savings to customers and achieve economies of scale to drive longer term supply chain reform, concerns exist to the erosion of competition and the potential of unfair commercial practices.
Stevedores have a privileged position with long term leases at Australian containerised ports servicing the load and unload of foreign owned shipping line carried cargo and provide landside access to third-party rail operators and a highly competitive road transport sector.
The expansion of stevedore operations into landside logistics activities such as road / rail transport, freight forwarding and customs brokerage services creates an environment with potential to discriminate against competitors.
As outlined in the FTA / APSA initial submission (member login required) to the Australian Competition & Consumer Commission (ACCC), the proposed acquisition of Silk Logistics by DP World Australia raises serious, multi-faceted concerns that threaten competition, transparency, and fairness in Australia's logistics sector. Vertical integration of this scale creates systemic risks that must be addressed to ensure a competitive and efficient market.
As outlined in yesterday's member notice, we commend the ACCC on their initial findings.
Terminal Access Charges
FTA / APSA continues to advocate for regulatory intervention to address incontestable vehicle booking system (VBS) fees administered by stevedores and empty container parks. We are encouraged by the ACCC view that associated practices represent a 'market failure'.
For further detail we recommend members register and listen to the webinar recording we hosted yesterday (13 March 2025) with executives from the ACCC and a lengthy question and answer session with Commissioner Anna Brakey – refer HERE.
Media Coverage
FTA / APSA continues to be the lead industry voice in the media.
We thank Tamsy Harcourt from The Australian for her coverage overnight of both the proposed DP World acquisition of Silk Logistics AND the spiraling VBS costs.
QUOTE:
"The big thing with this one is just the vertical integration," FTA director Paul Zalai said. "The ACCC's got some valid concerns that we shared as well; that this may open up a commercial advantage for them, and cause an issue for competing transport operators."
The proposed deal comes as exporters and importers have been hit with a rise in landside charges at ports. According to estimates from the FTA, total revenue per container lift has risen 23 per cent in three years. The FTA has also flagged skyrocketing costs of empty container notification fees.
The full article titled Stevedore company DP World's bid for rival Silk raises the ACCC's competition concerns is available HERE
Paul Zalai - Director FTA / Secretariat APSA