Flinders Ports Pty Ltd - proposed joint venture with DP World (SA) Pty Ltd

Summary

The ACCC decided not to oppose the proposed joint venture between Flinders Ports and DP World (SA) for the operation of the stevedoring facility located at the Outer Harbor Container Terminal at Port Adelaide, after it accepted a section 87B undertaking offered by Flinders Ports.

Market definition

Refer to Public Competition Assessment

Competition analysis

Refer to Public Competition Assessment

Undertakings

Undertaking On 9 September 2008, the ACCC accepted a section 87B undertaking from Flinders Ports in relation to its joint venture with DP World (SA). Broadly, this undertaking required Flinders Ports to: - notify the ACCC of any allocations of certain relevant land at Port Adelaide, and licences for container stevedoring at Port Adelaide; - delay settlement of any allocations of relevant land or container stevedoring licences until the ACCC has concluded a review and confirmed the outcome to Flinders Ports; and - provide written reports to the ACCC concerning approaches made to Flinders Ports by interested third parties seeking allocations of land or container stevedoring licences from Flinders Ports.

Variation On 29 April 2011 the ACCC accepted a variation to the section 87B undertaking given by Flinders Ports to take into account Flinders Ports' proposed acquisition of DP World (SA)'s interest in the joint venture. The variations were accepted on a confidential basis until the acquisition was completed and made public. Broadly, the variations: - adapt the obligations in the undertaking so that they are relevant to the new corporate relationship described above; - extend the term of the undertaking so that it will continue until it is withdrawn by Flinders Ports with the consent of the ACCC or revoked by the ACCC; - expand and clarify the types of proposed transactions of which Flinders Ports must notify the ACCC in advance; and - expand the scope of Flinders Ports' obligation to regularly report to the ACCC information in relation to certain requests received from third parties. The varied undertaking was published on 29 August 2012.