The Australian Competition and Consumer Commission has decided not to object to SCT Logistics obtaining a selection of 'East West Rail Assets'* in accordance with the Toll Undertakings.
Pursuant to the Undertakings given to the ACCC in connection with Toll's acquisition of Patrick Corporation in 2006, Toll agreed to make the assets available to a competing rail operator.
The Undertakings include a mechanism for the ACCC to object to a party obtaining the East West Rail Assets. The ACCC was satisfied that, in accordance with the criteria in the Undertakings, there were no grounds upon which to object to SCT Logistics.
As a result of its intention to restructure its business, announced late last year, Toll has recently sought a variation to the Undertakings requesting, amongst other things, a waiver of the obligation to make the East West Rail Assets available.
"The ACCC has considered Toll's request for a waiver and has determined that Toll should be required to comply with its original obligation with regards to the East West Rail Assets," ACCC Chairman, Mr Graeme Samuel, said today.
However, in connection with its restructure Toll has also sought a variation to its Undertakings to waive its obligations to sell 50 per cent of Pacific National, to divest the PrixCar interest and the Toll vehicle transport business, and to comply with certain non-discrimination obligations in relation to the operation of Pacific National and Patrick's container terminals.
"The ACCC is continuing its assessment of all other aspects of Toll's proposed variation and expects to make an announcement in that regard as soon as possible," Mr Samuel said.
*The 'East West Rail Assets', also referred to as the 'Starter's Kit', comprise locomotives, rolling stock, terminal access, train paths and ancillary services such as crewing, maintenance and fuelling. The Undertakings provide that, in the event that a purchaser elects to take up only some of the available assets, any remaining assets may be made available to a second purchaser.