Shippers in Australia are backing a probe by the country's competition authority into DP World's planned US$110 million acquisition of leading forwarder Silk Logistics, saying the deal could lead to higher charges and anti-competitive behavior.
"[The deal] has major implications for competition in Australia's container freight sector, with potential impacts on supply chain costs for importers, exporters and transport operators," said Paul Zalai, director of the shippers group Freight & Trade Alliance (FTA)
ACCC also said DP World-Silk could leverage its stevedoring dominance to increase charges or degrade service quality for competing transport providers at four key ports — Sydney's Port Botany, Melbourne, Brisbane and Fremantle
story by Keith Wallis, special correspondent for the JOC