The Australian Competition and Consumer Commission (ACCC) has published a Statement of Issues outlining its preliminary competition concerns regarding DP World Australia's proposed acquisition of Silk Logistics. This acquisition could significantly impact the container transport services market in Australia.

DP World Australia is a major player in container stevedoring, operating at key ports including Botany (Sydney), Melbourne, Brisbane, and Fremantle, handling about a third of the containers processed at these locations. Silk Logistics, on the other hand, is one of the few national providers of door-to-door container logistics, transporting containers to and from these ports.

The ACCC has raised alarms that the acquisition may reduce competition in container transport services, potentially leading to higher prices and lower service quality for Australian importers and exporters. ACCC Commissioner Dr. Philip Williams emphasized concerns about DP World's ability to increase terminal fees or degrade service quality for competing transport providers post-acquisition.

Additionally, the ACCC is investigating whether DP World might employ a strategy of offering below-cost transportation prices to attract customers, which could stifle competition and allow for price increases in the future. There are also worries that DP World could gain access to sensitive data about Silk's competitors, further harming competition.

The ACCC's monitoring of the container stevedoring market has revealed limited competition among stevedores regarding terminal charges, which informs their preliminary concerns. The commission is inviting submissions from interested parties until March 27, 2025, to gather more insights on the potential implications of this acquisition.