Published by The Maritime Executive

Published by The Maritime Executive

Published by The Maritime Executive

Published by The Maritime Executive

Published Feb 24, 2022 8:56 PM by The Maritime Executive

The proposed merger of two of the leading providers of cargo handling equipment, Cargotec and Konecranes, cleared an important regulatory hurdle winning conditional approval from the European Commission. Closing of the merger however continues to be delayed with the company saying that with reviews still underway by other authorities, the completion by the first half of 2022 seems more challenging.

The companies announced plans in October 2020 to combine to strengthen their competitive stance against Chinese crane manufacturers as well as unlock value in their operations by providing a lifecycle platform for customers. They were targeting closing the merger before the end of 2021 but encountered strong objections from port authorities and customers which led to more extensive competition reviews. In addition to EU approval, the transaction is being reviewed by authorities including in Australia, the UK, and the United States.

The UK’s Competition and Markets Authority, for example, said that it provisionally found that the anticipated merger would lead to a significant lessening of competition in the supply of certain types of gantry cranes, mobile equipment, and straddle and shuttle carriers. The UK. Like any of the regulatory authorities said they were concerned that customers would have few remaining alternative suppliers after the merger.

“We are currently concerned that this merger could lead to a reduced quality of service or higher prices for port terminals and other customers of container handling equipment,” said Martin Coleman, Chair of the CMA inquiry group reporting on the provisional findings of their investigation in November 2021. “Our competition concerns need to be addressed to ensure that these customers are not worse off as a result of the deal, and there is no negative impact on U.K. consumers and businesses.”

The European Commission’s conditionally approval of the planned merger between Konecranes requires the divestment of Konecranes' Lift Truck business and Cargotec's Kalmar Automation Solutions. Konecranes’ Lift Truck business includes the manufacturing and commercialization of reach stackers, full container handlers, empty container handlers, as well as forklift trucks. Cargotec’ Kalmar Automation Solutions business consists of its full cranes and straddle/shuttle carrier business.

The companies had proposed this remedy to the European Commission in September 2021, which triggered a new extensive investigation and widespread consultation with market participants across Europe. The commission ultimately accepted the company’s position that the divestitures would eliminate overlaps in the container handling equipment businesses of the companies while allowing the combined company to realize the benefits of the proposed merger.

Three weeks ago, at the beginning of February, the companies issued a statement saying that “based on ongoing dialogue with authorities, the remedy requirements are more complex than expected.” While they have gained conditional EU approval, they are still working with others including the U.S. Department of Justice. The Australian Competition & Consumer Commission outlined its preliminary concerns focusing on the fact that the two companies were the only suppliers of straddle carriers to Australia’s terminals. Australian regulators were scheduled to release their final report by mid-February 2022., while the UK authorities are due to issue their final report by April 1, 2022.   

Published Sep 9, 2022 7:43 PM by The Maritime Executive

Three years after car carrier Golden Ray wrecked in Georgia’s St. Simons Sound and a year after the salvage operation was completed the legacy of the wreck continues to hang over the Georgia community. On Wednesday, one day shy of the third anniversary of the wreck heeling over in the sound and triggering the massive salvage operation a new lawsuit was filed in U.S. District Court in Brunswick, Georgia echoing issues raised by the local government in a similar suit...

Published Sep 9, 2022 6:35 PM by The Maritime Executive

SMM 2022 wrapped up on Friday, and the numbers show that the industry is happy to return to in-person events. Over the course of the week, more than 30,000 people came to the Hamburg Messe conference complex to check out suppliers, meet friends and customers, close deals - and, of course, to party. The first two days of the show were particularly packed with visitors, and some corporate presentations had standing room only.  The talk of the conference was decarbonization, of course, along...

Published Sep 9, 2022 6:27 PM by The Maritime Executive

The U.S Coast Guard intends to remove the wrecks of two abandoned ships in Oregon’s Columbia River after it became apparent they are a danger to the environment and a risk to vessels operating outside the navigation channel. The Coast Guard said that two years after it oversaw the removal of thousands of gallons of diesel and oily water from the decommissioned 125-foot cutter the Alert and the 100-foot former Navy tugboat Sakarissa, the two derelict vessels that sunk off...

Published Sep 9, 2022 5:51 PM by The Maritime Executive

The Productivity Commission of Australia released a report, which among other issues focuses on boosting productivity at the country’s major seaports. The report contends that persistent inefficiencies at the Australian ports are costing the economy an estimated A$605 million (approximately US$415 million) per year. The report is part of an inquiry commissioned by the Coalition Party during the tenure of Scott Morrison, leader of Australia’s Liberal Party and the country’s Prime Minister from 2018 till May of this year. Last...

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