The new entity will be a powerful force in Australian logistics covering container transport, empty container parks, licenced depots, warehousing and distribution centres.
The Freight & Trade Alliance (FTA) submission to the Australian Competition and Consumer Commission (ACCC) acknowledged the immediate benefits of increased coverage in metropolitan Sydney, Melbourne, Brisbane and Fremantle by providing:
– Shipping lines with another option of having a provider of empty container park services that has national coverage; and
– A genuine alternative to Qube as a provider of integrated logistics services to importers, exporters and freight forwarders handling significant volumes of containerised freight.
Correspondence received from the ACCC stated that the joint venture was unlikely to lead to a substantial lessening of competition in any market as they would continue to face strong competition from a number of alternative providers (including Qube, Toll Extra, Swift, Chalmers and others).
Our submission also highlighted risks associated with a stevedore operator potentially providing preferential treatment to affiliated logistics providers.
The ACCC determined that the joint venture was unlikely to increase Patrick Terminals’ incentive to favour the joint venture to the detriment of rival wharf cartage providers.
We will continue our advocacy highlighting the need for transparency in the stevedore container receipt and delivery process where all can confidently operate in a fair and openly-competitive operating environment.
We look forward to some form of acknowledgement and action towards this outcome in the next ACCC stevedoring monitoring report.
The bottom line is that there will now be a new super power in the logistics market … one with vertical integration and support from the competition regulator.
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Paul Zalai is an advocate for the Australian freight & trade sectors. Click here to visit Freight & Trade Alliance
