ACCC will not oppose proposed sale of Aurizon’s Queensland intermodal business

12 October 2018

The ACCC notes today’s announcement by Aurizon about the sale of its Queensland intermodal business to Linfox.

The ACCC has considered the Linfox proposal, and has decided that a public review of the transaction is not required, as we do not consider the acquisition by Linfox will give rise to a substantial lessening of competition.

“Linfox’s operations in Queensland are relatively limited, and the transaction will mean there will remain two intermodal rail line-haul providers in Queensland, which is a good outcome for rail competition and Queenslanders,” ACCC Chair Rod Sims said.

Aurizon had previously announced that it would shut the Queensland intermodal business if it couldn’t progress the earlier transaction proposal involving Pacific National.

Under the earlier transaction proposal, it planned to sell the rail component of the Queensland intermodal rail business to Pacific National, its only competitor in intermodal rail in Queensland.

“The ACCC did not consider that Aurizon’s shut-down plans were rational given there were other options,” Mr Sims said.

“The sale of the Queensland intermodal business demonstrates why the ACCC must always question claims that businesses will be shut if we don’t approve a merger.”

The ACCC litigation concerning the sale of Acacia Ridge Rail Terminal to Pacific National and Aurizon’s intermodal sale process is continuing.

Release number: 
204/18
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