India antitrust watchdog issues advisories to DP World, Maersk units operating at Mumbai port

A DP World spokesperson said the company had not received any such order from the Indian watchdog, but it was ‘committed to ensuring’ it complies with all laws. (Reuters)
Updated 18 January 2019

India antitrust watchdog issues advisories to DP World, Maersk units operating at Mumbai port

  • The Competition Commission of India last year ordered a probe into suspected antitrust violations by DP World and Maersk units
  • The antitrust dispute at the JNPT is based on so-called inter-terminal transfers

NEW DELHI: 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).
Handling 66 million tons 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, 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.
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.
The advisories, if not withdrawn, would cause “irretrievable damage or losses” not only to PSA, and would not augur well for the port’s development, according to the order.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 not been made public.
“This is likely to generate unwarranted uncertainty, chaos, discontent and anxiety among shipping lines and customers,” the CCI said.
The order is only an interim measure, and the wider probe continues.
A DP World spokesperson said the company had not received any such order from the Indian watchdog, but it was “committed to ensuring” it complies with all laws.
A.P. Moller-Maersk, the world’s biggest container shipping group, did not respond to queries. PSA, which is owned by Singapore government-owned investment fund Temasek Holdings, declined to comment.
The antitrust dispute at the JNPT is based on so-called inter-terminal transfers.
Under the system, freight trains arriving at JNPT typically carry containers destined for several terminals, but stop at just one that handles all the cargo on a given day. Other operators then collect their containers by truck for loading at their own terminals. A similar procedure is followed, in reverse, when imported containers are unloaded.
DP World’s advisory had said the inter-terminal operations with PSA were “inefficient and unviable.” Maersk had said its terminal “shall not be responsible” for handling containers to and from PSA-terminal bound trains.
Both the companies denied PSA’s allegations while arguing to the CCI that the advisories were based on “commercial justifications,” the order said.
Units of Maersk, DP World and PSA operate four of the JNPT port’s five terminals, with the fifth owned by the government. The PSA terminal, inaugurated in February, is planned to be the largest, expected to nearly double JNPT’s capacity.


South Sudan opposition leader returns to meet with president

Updated 19 October 2019

South Sudan opposition leader returns to meet with president

  • Riek Machar last met face-to-face with President Salva Kiir in September, when they discussed outstanding issues in a fragile peace deal
  • The civil war killed almost 400,000 people and displaced millions

JUBA, South Sudan: South Sudan opposition leader Riek Machar returned to the country Saturday to meet with President Salva Kiir less than a month before their deadline to form a unity government after a five-year civil war.
Machar last met face-to-face with Kiir in September, when they discussed outstanding issues in a fragile peace deal. His two-day visit includes a meeting with the US ambassador to the United Nations, who arrives Sunday with a UN Security Council delegation.
The delegation is expected to encourage progress in the peace deal signed a year ago but fraught with delays.
Both Kiir and Machar will meet with the delegation Sunday, government spokesman Michael Makuei said.
The opposition has said Machar won’t return to South Sudan for good to form the government by the Nov. 12 deadline unless security arrangements are in place.
The US has said it will reevaluate its relationship with South Sudan if that deadline is missed.
The civil war killed almost 400,000 people and displaced millions.
Before Machar’s return a unified army of 41,500 opposition and government soldiers needs to be ready along with a 3,000-person VIP protection force.
But so far there are only 1,000 unified soldiers and security arrangements won’t meet the deadline, deputy opposition spokesman Manawa Peter Gatkuoth said.
The previous Machar-Kiir meeting focused on speeding up the screening and reunification of forces, but parties left the talks with differing views.
Deputy chairman for the opposition Henry Odwar called the meeting “lukewarm,” while Makuei called it “highly successful” and said everything was on track for next month’s deadline.