The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose DP World Australia Limited’s proposed acquisition of Silk Logistics Holdings Limited. After a thorough investigation, the ACCC determined that the acquisition is unlikely to result in a substantial lessening of competition within the industry.

DP World Australia operates container stevedoring services at major ports including Botany, Melbourne, Brisbane, and Fremantle, handling about one-third of the containers processed at these locations. Silk Logistics, on the other hand, is a national provider of container logistics, transporting import and export containers to and from the ports serviced by DP World Australia.

The ACCC's analysis focused on the potential integration of DP World Australia's container terminals with Silk's logistics operations, particularly regarding the impact on other container transport service providers. The commission assessed whether DP World Australia would have the ability and incentive to discriminate against Silk's competitors by increasing their costs or reducing their access quality to the terminals.

Findings indicated that while DP World Australia could theoretically engage in subtle discriminatory practices, such actions are unlikely to significantly harm competition. The risk of operational delays and disruptions at DP World’s terminals could lead to a loss of shipping lines to competing terminals, which would ultimately damage DP World Australia’s business interests.

ACCC Commissioner Dr. Philip Williams emphasized that DP World Australia would continue to face competition from various established and emerging container transport providers. The ACCC will maintain its monitoring role in Australia’s container freight industry, tracking prices, costs, and profits, and providing annual reports to the government.