Wallenius Wilhelmsen says market softening short lived
NewsWallenius Wilhelmsen’s CEO Lasse Kristoffersen says short-term softening sales of auto and heavy equipment globally is a temporary softening rather than a structural shift.
The ACCC has raised competition concerns over Qube’s proposed acquisition of MIRRAT and is seeking feedback on a remedy offered to address these issues.
The Australian Competition and Consumer Commission (ACCC) has published a statement outlining preliminary competition concerns with Qube Holdings Limited’s proposed acquisition of Melbourne International RoRo & Auto Terminal Pty Ltd (MIRRAT). The ACCC is also seeking views on a court-enforceable undertaking offered by Qube, which it has put forward to remedy competition concerns.
MIRRAT, owned by Wallenius Wilhelmsen, operates the automotive/Ro-Ro terminal at Webb Dock West in Melbourne. The proposed acquisition would permit Qube to acquire sole operating rights for Ro-Ro trade through the Port of Melbourne.
Read more: Wallenius Wilhelmsen sells Australian RoRo terminal
Qube, through its wholly owned subsidiary, Australian Amalgamated Terminals Pty Ltd (AAT), operates automotive cargo terminals at the Port of Brisbane and Port Kembla, as well as a general cargo terminal at Appleton Dock at the Port of Melbourne. Qube is Australia’s largest provider of import and export logistics services including port-related activities of terminal management, stevedoring, processing, pre-delivery inspection (PDI) and delivery.
Webb Dock West is the key facility for the processing of automotive and Ro-Ro cargo through the Port of Melbourne, according to feedback received by the ACCC. The MIRRAT facility spans 187,000 square meters and features three berths. It includes 14,500 car slots and 8,000sqm of undercover storage. The facility is equipped with two quarantine washbays and a 120-tonne gantry crane.
“The proposed acquisition would result in Qube, which is one of Australia’s largest integrated terminal and freight logistics providers, owning a further interest in a critical component of the automotive delivery supply chain at the Port of Melbourne,” ACCC Commissioner Philip Williams said. “We are concerned that the proposed acquisition may have a significant effect on competition in downstream services such as automotive stevedoring and pre-delivery inspection (PDI) services.”
“If this transaction goes ahead, Qube would be operating the terminal while also being in active competition with other automotive stevedores or PDI providers,” Williams said.
The ACCC is concerned that Qube could raise the costs of access for rival stevedores and PDI operators, preventing them from competing effectively. Qube could do this by restricting access to the terminal or related services, raising prices and lowering the quality of terminal services. Concerns were also raised with the ACCC that Qube would have access to rivals’ commercially sensitive information as the terminal operator.
According to the ACCC, Qube’s proposed undertaking, which would vary the current court-enforceable undertakings in place at Port Kembla and Port Brisbane, would:
“We are now seeking feedback on both the preliminary competition concerns associated with the acquisition identified in the Statement of Issues and the proposed undertaking, which has been put forward by Qube,” Williams said. “While the ACCC has decided to publicly consult on the undertaking, this should not be interpreted to mean that this or any undertaking will ultimately be accepted.”
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