CONSUMER watchdog, the ACCC is concerned that DP World Australia’s proposed acquisition of Silk Logistics has could lead to higher prices and reduced quality for Australian importers and exporters.

In a media release on 13 March the ACCC outlined several concerns about the proposed acquisition.

It said DP World Australia operates container stevedores at the Ports of Botany (Sydney), Melbourne, Brisbane and Fremantle where on average, it services approximately a third of the containers processed at these ports.

“Silk is one of the only national door-to-door container logistic providers in Australia. It hauls import and export containers using trucks to and from the ports that DP World Australia is operational at,” the release said.

“The proposed acquisition would result in DP World Australia, a major container stevedore, owning a national container transport provider.”

ACCC Commissioner Dr Philip Williams said the ACCC had heard concerns that DP World’s ownership of a national container transport provider was likely to reduce competition in the supply of container transport services.

“This could lead to higher prices and reduced quality for Australian importers and exporters,” Dr Williams said.

“Our review is focused on DP World Australia’s ability and incentive to either increase terminal fees or worsen the quality of terminal services for container transport providers that compete with Silk, after the acquisition.

“We are also assessing whether DP World Australia, after acquiring Silk, is likely to offer below-cost transportation prices to importers and exporters if their containers are also picked up and dropped off at DP World Australia’s stevedoring terminals.

“This is because a discounting strategy involving below-cost prices could reduce container transport competition allowing a combined DP World Australia and Silk to raise prices later.”

The ACCC is also concerned that DP World Australia could be able to access and use commercially sensitive data about Silk’s rivals, in a way that damages competition.

The release said ACCC’s container stevedoring monitoring role had helped to inform the ACCC’s preliminary views. The ACCC’s monitoring role indicates that there is currently very limited competition between stevedores on terminal charges to container transport providers.

The ACCC invites submissions from interested parties by 27 March 2025.