India Watchdog Orders DP, Maersk Units To Withdraw Some Notices To Clients At Mumbai Port

www.oann.com | 7/31/2015 | Staff
tiana_101 (Posted by) Level 3
NEW DELHI (Reuters) – India’s antitrust watchdog has ordered Denmark’s A.P. Moller-Maersk and Dubai’s DP World to withdraw certain customer advisories which it said could hamper growth of the country’s largest container port in Mumbai, a document seen by Reuters showed.

The Competition Commission of India (CCI) last year ordered a probe into suspected antitrust violations by DP World and Maersk units at the terminals they operate at state-owned Jawaharlal Nehru Port Trust (JNPT).

Tonnes - Cargo - Year - March - JNPT

Handling 66 million tonnes of cargo in the last fiscal year to March, JNPT is critical to India’s international trade. The port handles more than half of India’s traffic in shipping containers each year.

The probe was ordered as the CCI found merit in a complaint filed by Singapore’s PSA International Pte Ltd, which alleged the rival duo had created barriers to hinder the growth of PSA’s terminal by colluding on certain charges they levy at the port.

Terminal - Operators - Containers - Port - Efficiency

Though the terminal operators handle each other’s containers to help boost the port’s efficiency, PSA had alleged that DP World and Maersk last year issued advisories aimed at discouraging port users from sending PSA’s containers to their terminals.

In an order issued by the CCI on Jan. 15, the watchdog ordered Maersk and DP World units to withdraw those advisories, saying it “smacks of anti-competitive” conduct.

Advisories - Damage - Losses - PSA - Port

The advisories, if not withdrawn, would cause “irretrievable damage or losses” not only to PSA, and would not augur well for the port’s development, according to the order. It has...
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