ACCC concerned with Qube’s proposed acquisition of MIRRAT
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The news: The competition regular is seeking views on preliminary competition concerns with Qube's proposed acquisition of Melbourne International RoRo & Auto Terminal (MIRRAT).
The Australian Competition and Consumer Commission (ACCC) is also inviting feedback on a court-enforceable undertaking offered by Qube, which it has put forward to remedy the competition concerns.
The context: The ACCC said the proposed acquisition of MIRRAT, which operates the roll-on roll-off automotive terminal at Webb Dock West in Melbourne, would permit Qube to acquire sole operating rights for roll-on roll-off trade through the Port of Melbourne.
The ACCC is concerned that Qube could raise the costs of access for rival stevedores and pre-delivery inspection (PDI) operators, preventing them from competing effectively. Qube could do this by restricting access to the terminal or related services, raising prices and lowering the quality of terminal services, the regulator said.
The ACCC also noted concerns that Qube would have access to rivals’ commercially sensitive information as the terminal operator.
Qube’s proposed undertaking would require its wholly owned subsidiary Australian Amalgamated Terminals (AAT) — which operates cargo terminals at the Port of Brisbane, Port Kembla and Appleton Dock at the Port of Melbourne — to not discriminate between terminal users in favour of its own interests in the automotive supply chain.
AAT would be required to provide for certain price and non-price dispute resolution processes, ring fence certain confidential information and report periodically on its compliance with the undertaking.
The undertaking would also provide independent oversight, including by an independent auditor, and impose restrictions on AAT's ability to introduce or change certain tariffs.
The ACCC is seeking feedback on both the preliminary competition concerns and Qube's proposed undertaking, with submissions closing on 7 November.
What they said: "The proposed acquisition would result in Qube, which is one of Australia’s largest integrated terminal and freight logistics providers, owning a further interest in a critical component of the automotive delivery supply chain at the Port of Melbourne," said ACCC commissioner Philip Williams.
"We are concerned that the proposed acquisition may have a significant effect on competition in downstream services such as automotive stevedoring and pre-delivery inspection (PDI) services.
"If this transaction goes ahead, Qube would be operating the terminal while also being in active competition with other automotive stevedores or PDI providers."
The source: ACCC media release
