Newsletter #379 (View other news stories)
Flinders and DP World JV uncontested
ADELAIDE, South Australia, Australia
Thursday, 25 Sep 2008
 Flinders Port and DP World (SA) have proposed a joint venture to conduct container stevedoring. |
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A proposed joint venture will see Flinders Port and DP World (SA) becoming shareholders in an entity called Adelaide Container Terminals which would be granted a right to conduct container stevedoring at the Container Terminal until 30 April 2039.
The Australian Competition and Consumer Commission (ACCC) will not intervene in the proposed joint venture after accepting a court-enforceable undertaking from Flinders Ports. The ACCC was concerned that Flinders Ports, through its dual role as port manager and co-owner of the incumbent container stevedore, would have the incentive and ability to prevent prospective container stevedores from developing another terminal at Port Adelaide to serve growth in container traffic in the future.
Flinders Ports offered the section 87B undertaking to address the ACCC's concerns. A key requirement of the undertaking is that Flinders Ports will not allocate certain land and licences at Port Adelaide until the ACCC has reviewed the impact on competition.
"The ACCC is satisfied that the proposed joint venture, subject to the court-enforceable undertaking, would be unlikely to substantially lessen competition in the relevant markets," says ACCC chairman Graeme Samuel.
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