Some very large multinational transport and logistics firms have emerged to provide
integrated transport services to shippers in the globalised economy. Do these firms
escape regulatory oversight from national competition authorities because of their
sheer scale? Do they pose additional threats to competition when they merge with or
acquire other companies in the supply chain?The Round Table brought competition experts
together with researchers on maritime shipping, rail freight and logistics to identify
critical competition issues and appropriate regulatory responses. An examination of
the strategies of transport and logistics companies reveals that vertical integration
can yield efficiencies, but usually reflects a need to improve the use of expensive
fixed assets rather than control all parts of the supply chain. This usually explains
why shipping lines acquire terminal operators. Horizontal acquisitions, where similar
companies serving the same market merge, are more likely to raise competition concerns.
Problems are particularly prone to arise at bottleneck infrastructure facilities.The
Round Table report provides an economic framework for examining competition in global
transport and logistics businesses, discusses the adequacy of the remedies available
to regulators when competition is threatened, and explores the role of competition
authorities and Transport Ministries in ensuring markets are efficient.
|Summary of Discussions
|Empirical Evidence for Integration and Disintegration of Maritime Shipping, Port and
|Market Power and Vertical and Horizontal Integration in the Maritime Shipping and
|Railway and Ports Organisation in the Republic of South Africa and Turkey: the Integrator's
|Are Horizontal Mergers and Vertical Integration a Problem?
|List of Participants