Sealink Travel Group Limited - s.87B undertaking

On 9 November 2015, the ACCC announced it had accepted an undertaking from SeaLink Travel Group, Big Red Cat Pty Ltd and Transit Systems Ferries Pty Ltd (together, SeaLink) (the SeaLink undertaking) pursuant to section 87B of the Competition and Consumer Act 2010.

The SeaLink undertaking replaces the undertaking given by Transit Systems Ferries Pty Ltd, Big Red Cat Pty and Transit Systems Pty Ltd (together Transit) and accepted by the ACCC on 1 December 2011 (the Transit undertaking) in connection with Transit’s acquisition of Stradbroke Ferries Limited (the 2011 acquisition).  The objective of the Transit undertaking has been to address the ACCC’s competition concerns that would otherwise have arisen as a consequence of the 2011 acquisition in relation to the market for vehicle ferry services on the Brisbane-North Stradbroke Island Route.

On 15 September 2015 SeaLink Travel Group entered into an agreement to acquire Transit Systems Ferries Group, which includes the vehicle ferry service operated on the Brisbane-North Stradbroke Island route. The SeaLink undertaking ensures that the obligations previously imposed to remedy to the ACCC’s competition concerns in relation to the 2011 acquisition are transferred to the new owner.

The SeaLink undertaking aims to achieve this objective by ensuring that any potential new entrant on the Brisbane-North Stradbroke Island Route has access to landing sites by:

(a)          requiring SeaLink to surrender its exclusive rights to the Toondah Harbour Ramp and the Toondah Harbour Sub-lease Area should a new entrant require access in order to commence a vehicle ferry service on the Brisbane-North Stradbroke Island Route

(b)          prohibiting SeaLink from seeking exclusive rights in the future over the Toondah Harbour Ramp or the Toondah Harbour Sub-lease Area

(c)           prohibiting SeaLink from seeking exclusive rights in the future over the Junner Street Public Ramp or land adjacent to the Junner Street Public Ramp

(d)          requiring SeaLink not to hinder or prevent another person from using the Toondah Harbour Ramp or the Toondah Harbour Sub-lease Area to operate a ferry service

(e)          requiring SeaLink not to hinder or prevent another person from using the Junner Street Public Ramp or land adjacent to the Junner Street Public Ramp

(f)           providing for the effective oversight of SeaLink’s compliance with the SeaLink undertaking.

The ACCC also consented to the withdrawal of the Transit undertaking on 9 November 2015. The ACCC’s decision to consent to the withdrawal was conditional on completion of SeaLink’s acquisition of Transit Systems Ferries Group. Completion occurred on 6 November 2015.