The ACCC’s review of DP World Australia’s proposed acquisition of Silk Logistics focuses on potential competition impacts across the container logistics supply chain.

The Australian Competition and Consumer Commission (ACCC) has initiated a public review of DP World Australia Limited’s proposed acquisition of Silk Logistics Holdings Limited to determine potential impacts on competition within the container logistics sector.

DP World Australia provides stevedoring services and operates container terminals at the Ports of Melbourne, Botany (Sydney), Brisbane and Fremantle. The company also operates a freight management business in Melbourne and Sydney, holds a 50% stake in warehousing and logistics provider AWH, and co-owns the OneStop vehicle booking system used at multiple Australian ports. Silk is a port-to-door service provider that offers port logistics and contract logistics services in New South Wales, Victoria, Queensland, South Australia and Western Australia.

The ACCC is seeking feedback from Container Transport Alliance Australia (CTAA) members and other stakeholders in the logistics chain to assess how the deal could affect industry competition. Key questions focus on whether the merger would enable DP World Australia to favour its own port logistics services or limit competition from other suppliers, such as independent landside transport operators or port logistics services and whether the acquisition could result in a loss of competition at any level of the container supply chain. Concerns include the potential for DP World’s preferential treatment through Vehicle Booking System (VBS) slot allocations or reduced Terminal Access Charges (TACs), which could disadvantage competitors. The ACCC is also examining whether Silk Logistics would be treated equitably as a third-party operator at DP World Australia’s terminals or if the acquisition could lead to bundled container stevedoring services that limit market competition.

Other stakeholders are invited as well to provide input on the potential consequences of aligning DP World Australia’s terminal operations and Silk’s port logistics services.