Qube Logistics (Aust) Pty Limited - proposed acquisition of CRT Group Pty Ltd

Summary

Qube proposed to acquire the business, inventory, plant, equipment and property of the CRT Group.

Market definition

The ACCC focused its assessment of the proposed acquisition on the main areas of overlap between the merger parties:

- the provision of rail terminal services for container cargo being transported to/from Melbourne, including the port; and
- the provision of logistics services for containerised cargo.

The ACCC did not consider it necessary to form a definitive view regarding market definition in these markets as the proposed acquisition was unlikely to raise concerns regardless of the market definition applied.

Competition analysis

The ACCC concluded that competition concerns were unlikely to arise in relation to the markets for the provision of rail terminal services or the provision of logistics services for containerised cargo for the following reasons:

- To the extent Qube and CRT overlap in the provision of container transport logistics there are a number of logistics operators who are likely to constrain the parties post-acquisition;

- CRT's terminal is a minor competitor in the market for rail terminal services, with limited options for expansion; and

- Qube is likely to continue to be constrained by competition from DP World and Asciano in the provision of rail terminal services at the Port of Melbourne.