The Australian Competition and Consumer Commission has said the Federal Court’s decision to allow freight operator Pacific National to buy an Acacia Ridge rail freight terminal gives the company a monopoly on rail freight and will leave Australians paying more for goods.
The Commission lost its case in the Federal Court trying to prevent rail freight operator Aurizon from selling the Acacia Ridge terminal where rail freight is transferred between New South Wales and Queensland.
Justice Beach of the Federal Court decided to allow the $205 million sale to proceed because Pacific National offered undertakings guaranteeing competitors access to the terminal, however Commission Chairman Rod Sims said the undertakings are ‘virtually unenforceable’ and will not stop Pacific National from controlling the market.