Watchdog growls at freight deal

THE competition watchdog is worried Aurizon’s planned sale of its Queensland intermodal business would give Pacific National a stranglehold on freight haulage in the region.

Australian Competition and Consumer Commission chairman Rod Sims says the proposed sale to a consortium of Pacific National and Linfox would make Pacific National the only operator of its kind to and from far north Queensland.

“We are concerned the proposed acquisitions would lead to increased prices and reduced service for freight hauled between Brisbane and far north Queensland,” Mr Sims said in a statement of issues released on Thursday.

The ACCC is concerned about Pacific National’s plan to acquire the Acacia Ridge terminal in a $220 million deal because of the power that would give the buyer against any potential freight rival.

But Aurizon on Thursday reiterated that it would close the Acacia Ridge terminal if the sale is blocked, because it has generated sustained losses. “Any closure of the business would likely occur by the end of 2018 and would result in the loss of up to 350 jobs throughout Brisbane and regional Queensland,” Aurizon said.

“Closure would also be likely to affect rail services and rail line haul capacity in Queensland, potentially causing disruption to freight import and export supply chains.”