The Australian Competition and Consumer Commission proposes to allow DP World Australia Limited and Patrick Stevedores Operations Pty Ltd to give preferential treatment to truck carriers engaging in dual runs (where a truck both delivers and collects a container in a single trip) at the Port of Fremantle.
DP World and Patrick operate the only two container terminals at the port and provide stevedoring services at their respective terminals.
The arrangement does not allow DP World and Patrick to agree on the price or the number of slots they make available at their terminals for booking by truck carriers.
The proposed arrangement is a government and industry initiative, intended to address the problem of road congestion at the Port of Fremantle and its effect both on the efficiency of the port's operations and on the surrounding community.
"The ACCC accepts that the proposed arrangement is likely to result in an increase in the efficiency of the Port of Fremantle and a reduction in the number of trucks moving to and from the port, to the benefit of the surrounding community and the environment," ACCC chairman Graeme Samuel said.
The ACCC considers that there are limited public detriments that may arise from the proposed arrangement. The applicants will continue to individually decide on truck carrier access pricing, the total number of slots available and the level of service offered to truck carriers.
The ACCC proposes to grant authorisation for five years.
Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC's draft determination will be available from the ACCC website.
The ACCC invites submissions from interested parties in relation to the draft determination before making its final decision. Parties wishing to make submissions should do so by 20 October 2010. Please refer to the website for further information about making a submission to the ACCC.