Australia's competition watchdog has outlined preliminary competition concerns with the proposed acquisition of the Port of Geelong by the Spirit Super Palisade Consortium.
The consortium is made up of a range of superannuation and infrastructure funds, including the Diversified Infrastructure Fund managed by Palisade Investment Partners.
Investors managed by Palisade also wholly own and operate the Port of Portland, a bulk commodity port in south-west Victoria.
The proposed acquisition would lead to minority common ownership between the Port of Geelong and Port of Portland, ACCC Commissioner Stephen Ridgeway said.
"We are concerned the acquisition may substantially lessen competition in Victoria for the supply of port services for bulk cargo," Mr Ridgeway said.
"For future large port users, there are very few bulk port options in Victoria.
"Between them, the Port of Geelong and Port of Portland handle over half of Victoria's bulk cargo.
"This market structure is unlikely to change in the foreseeable future."
He said it appeared the two ports competed to attract certain dry bulk and break-bulk throughput, particularly from customers in western Victoria.
"Some market participants have raised strong concerns with the ACCC about losing the benefit of competition between the Port of Portland and the Port of Geelong for the best prices and terms."
Any substantial lessening of competition between ports had the potential for significant negative impacts on a range of industries.
The ACCC was exploring the degree of competition likely to be lost if the proposed acquisition proceeded.
"While the acquisition would not provide Palisade with outright control of Port of Geelong, it would obtain a degree of influence over the Port of Geelong," Mr Ridgeway said.
"In addition, common ownership could lessen the incentives for the Port of Portland to compete for customers through existing facilities and future investments in infrastructure."
The ACCC invites submissions from interested parties in response to the statement of issues by 14 April 2022.
The ACCC's final decision is scheduled for 9 June 2022.
More information, including the statement of issues, is available on the public register: Spirit Super and Palisade Investment Partners Consortium - Port of Geelong
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
