Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) wish to update members following the Australian Competition & Consumer Commission (ACCC) today issuing a media release outlining a Statement of Issues on DP World Australia's (DPWA) proposed acquisition of Silk Logistics Holdings (Silk).
As highlighted in our initial submission (member login required), informed by member feedback, FTA/APSA raised serious concerns regarding the potential impact of this acquisition on competition in Australia's container logistics sector.
The ACCC's preliminary findings reflect these same concerns, reinforcing the need for further industry scrutiny and feedback:
ACCC's Preliminary Concerns
The ACCC has identified three key areas of concern in relation to the proposed acquisition:
Discrimination Against Rival Transport Providers:
- DPWA could use its control over stevedoring operations to increase charges or degrade service quality for competing transport providers at Melbourne, Sydney (Port Botany), Brisbane, and Fremantle.
- This could lead to higher prices and reduced service quality for importers and exporters.
Exclusionary Below-Cost Pricing Strategies:
- DPWA may offer below-cost discounts to cargo owners and freight forwarders who use both DPWA terminals and Silk's transport services, disadvantaging independent transport providers.
- This strategy could undercut rivals, ultimately allowing DPWA to increase prices once competitors have exited the market.
Access to Sensitive Commercial Data:
- DPWA's acquisition of Silk could provide access to competitors' commercially sensitive information, potentially distorting competition.
- The ACCC is assessing whether this data could be misused to further DPWA's market position at the expense of independent operators.
These concerns align closely with the issues raised by FTA/APSA in our submission.
FTA/APSA's Position & Advocacy EffortsFTA/APSA's submission to the ACCC, reflecting direct member feedback, raised similar concerns regarding:
- Preferential treatment in the Vehicle Booking System (VBS): DPWA could prioritise Silk's operations for critical booking slots, disadvantaging independent transport providers.
- Bundling services and cross-subsidisation: The ability to offer stevedoring and landside logistics as a package could drive out competition.
- Leveraging sensitive data: DPWA could use its terminal and logistics data to undercut rival transport providers and pressure shipping lines to use its services.
- Market concentration and increased control: The acquisition could limit competition in the transport and logistics sector, reducing options for shippers.
We continue to engage with the ACCC to ensure that any decision reflects the need for a competitive, fair, and transparent supply chain.
Next Steps for Members
Submissions in response to the ACCC Statement of Issues are now open and members are encouraged to supply feedback via email to Tom Jensen by Friday 21 March 2025 for incorporation into the FTA/APSA submission.
Submissions can also be made direct to the ACCC by no later than Thursday 27 March 2025 by emailing mergers@accc.gov.au.
Final Decision
The ACCC intends to publicly announce its final view by 5 June 2025. However the anticipated timeline may change in line with the Informal Merger Review Process Guidelines.
Resources
FTA/APSA strongly encourages members—including transport operators, exporters, importers, freight forwarders, and logistics providers—to provide input on the competition concerns raised.
FTA/APSA remain committed to protecting the interests of our members and ensuring fair competition in Australia's container supply chain.
Tom Jensen - Head of International Freight & Logistics - FTA / APSACopyright © 2025 Freight & Trade Alliance (FTA) Pty Ltd, All rights reserved.