The Australian Competition and Consumer Commission (ACCC) will not oppose Patrick Container Ports’ joint venture with Australian Container Freight Service (ACFS).
The focus of the ACCC review was on whether the proposed joint venture would have the effect of increasing price or decreasing service in the provision of wharf cartage for relevant metropolitan areas.
It also considered whether the venture would increase the potential for Asciano to foreclose access to the Patrick terminals and thereby shut down rivals.
ACCC commissioner Dr Jill Walker said the provisions of the joint venture covering acquisition of shares or assets were unlikely to a lead to a substantial lessening of competition in any market.
As well as supplying wharf cartage and warehousing services in Sydney, Melbourne and Brisbane, both parties have interests in empty container parks in Sydney.
The ACCC concluded competition concerns were unlikely to arise in the provision of empty container park services because the overlap in the joint=venture parties’ activities was not significant and a number of alternatives are available.
Patrick Terminals was already vertically integrated prior to the joint venture and that is unlikely to substantially alter its incentives.
The joint venture will be one of the largest providers of container transport, warehousing and distribution services in Sydney, Melbourne, Brisbane and Fremantle.
However, the ACCC determined that, following the joint venture, Patrick and ACFS would continue to face strong competition from a number of alternative providers including Qube, Toll Extra, Swift, and Chalmers.
Patrick Container Ports is a subsidiary of Asciano, the ASX-listed business which also owns Pacific National.