The European Commission has cleared under the EU Merger Regulation the proposed acquisition of container liner shipping company Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft KG (HSDG) of Germany by Maersk Line A/S of Denmark, subject to conditions.

Both Maersk Line and HSDG are active worldwide in container liner shipping. The clearance is conditional upon the withdrawal of HSDG from five consortia on trade routes connecting (i) Northern Europe and Central America/Caribbean, (ii) Northern Europe and West Coast South America, (iii) Northern Europe and Middle East, (iv) the Mediterranean and West Coast South America and (v) the Mediterranean and East Coast South America. On these routes, the merged entity would have faced insufficient competition after the transaction.

Commissioner Margrethe Vestager, in charge of competition policy, said: “Competitive shipping services are essential for European companies and for the EU’s economy as a whole. The commitments offered by Maersk Line and HSDG will maintain a healthy level of competition to the benefit of the very many EU companies that depend on these container shipping services.”

The Commission’s competition concerns

The proposed transaction would lead to the combination of two leading container liner shipping companies. Maersk Line is the largest container shipping company, while HSDG is number nine worldwide. Like several other carriers, Maersk Line and HSDG offer their services on trade routes through cooperation agreements with other shipping companies. These are known as “consortia” or “alliances” and are based on vessel sharing agreements where members decide jointly on capacity setting, scheduling and ports of call, which are all important parameters of competition.

The Commission examined the effects of the merger on competition in this specific market for container liner shipping on seventeen trade routes connecting Europe with the Americas, Asia, the Middle-East, Africa and Australia/New Zealand.

The Commission found that the merger, as initially notified, would have created new links between the previously unconnected entities Maersk Line and five of the consortia HSDG belongs to (Eurosal 1/SAWC, Eurosal 2/SAWC, EPIC 2, CCWM/MEDANDES and MESA).

According to the Commission’s analysis, this would have resulted in anti-competitive effects on the corresponding five trade routes (Northern Europe and Central America/Caribbean; Northern Europe and West Coast South America; Northern Europe and Middle East; Mediterranean and West Coast South America; Mediterranean and East Coast South America). In particular, these links could have enabled the merged entity to influence key parameters of competition, such as capacity, for a very large proportion of those markets, to the detriment of their commercial customers and, ultimately, of consumers.

The proposed transaction would also create (a) limited links between Maersk Line and HSDG in the markets for short-sea shipping and “tramp services” (unscheduled, on demand shipping), as well as (b) limited links between the two companies’ activities in container liner shipping and the container terminals, harbour towage, freight forwarding, container manufacturing and inland transportation sectors where Maersk Line or other companies belonging to the Maersk Group are active.

However, in both areas, the Commission found no competition concerns, in particular because several other service providers are active in these markets.

The proposed commitments

In order to address the Commission’s competition concerns, Maersk offered to terminate the participation of HSDG in the five consortia (Eurosal 1/SAWC, Eurosal 2/SAWC, EPIC 2, CCWM/MEDANDES and MESA). This will entirely remove the problematic links between Maersk Line and HSDG’s consortia that would have been created by the transaction.

HSDG will continue to operate as part of the five consortia during the notice period to guarantee an orderly exit. However, a monitoring trustee will ensure that no anti-competitive information is shared between these five consortia and the merged entity during that notice period.

In view of the proposed remedies, the Commission concluded that the proposed transaction, as modified, would no longer raise competition concerns. The decision is conditional upon full compliance with the commitments.

Companies and products

HSDG operates 130 container vessels. HSDG markets its services through its global Hamburg Süd brand and its CCNI (Chile) and Aliança (Brazil) brands. HSDG is a member of several consortia and in particular:Trade route                                                                          ConsortiumNorthern Europe to Central America / Caribbean          Eurosal 1/SAWCNorthern Europe to West Coast South America              Eurosal 2/SAWCNorthern Europe to Middle East                                         EPIC 2Mediterranean to West Coast South America                   CCWM/MEDANDESMediterranean-East Coast South America                        MESA

Maersk Line operates 611 container vessels, 324 of which are chartered, and sells its container liner shipping services worldwide. It markets its services through the Maersk Line, Safmarine, SeaLand (Intra-Americas), MCC Transport (Intra-Asia) and SeaGo Line (Intra-Europe) brands. In addition, the Maersk Group also provides container terminal services, freight forwarding services, inland transportation, container manufacturing, and harbour towage services.

Merger control rules and procedures

The transaction was notified to the Commission on 20 February 2017.

The Commission has the duty to assess mergers and acquisitions involving companies with a turnover above certain thresholds (see Article 1 of the Merger Regulation) and to prevent concentrations that would significantly impede competition in the EEA or any substantial part of it.

The vast majority of notified mergers do not pose competition problems and are cleared after a routine review. From the moment a transaction is notified, the Commission generally has a total of 25 working days to decide whether to grant approval (Phase I) or to start an in-depth investigation (Phase II).

|  A  Marine Insight release  ||  April 11, 2017   |||

Much of the buzz around potential Hyperloop systems of late has centered on how they might first make tracks in countries outside the US, but for its latest announcement, startup Hyperloop One is looking much closer to home. The LA-based company has today outlined 11 potential routes for Hyperloop routes in the US that it says would massively reduce transport and cargo time through the nation's more heavily used passages.

Hyperloop One is just one of the transport companies vying make the futuristic transport system a reality. First described in an Elon Musk white paper in 2013, the Hyperloop would shuttle passengers and cargo through low-vacuum tubes at close to the speed of sound, a velocity made possible by the minimal aerodynamic drag inside.

Hyperloop One has agreements to explore the feasibility of such a system with Russia, Finland and Dubai, among others, but this week it is turning its attention to US soil. Presenting at the Vision for America Conference today, the company has outlined a set of potential routes for a US Hyperloop system that would link more than 35 states.

Such a network of high-speed transport tubes is a ways off yet, however. The 11 proposals are finalists in the Hyperloop One Global Challenge which kicked off last May and drew more than 2,600 participants. The 11 will be whittled down to three teams, who will then work with Hyperloop One's engineers to explore further development.

The proposals under consideration include a 121-mile (194 km) route from San Diego to LA, a 257-mile (413 km) route connecting Miami and Orlando, a 640-mi (1,029) "Texas Triangle" and a monster 1,152 mi (1,853 km) route between Cheyenne and Houston that would run through four states. This final example would cut a 17-hour car trip to a one-hour and 45 minute journey.

Hyperloop One also revealed that it has added the finishing touches to its 500-meter long test track (0.3 mi) in Nevada, which will function as a testbed for its propulsion, vacuum, levitation and control technologies.

|  A  Hyperloop One release  ||  April 07, 2017   |||

Simon Furness, founder of online tyre fitting company Hyper Drive has taken a product that is traditionally not an internet product and turned it in to one proving convenience is what is important to consumers.

With online tyre sales surging over 300% compared to this time last year consumers are liking the fact that they can shop from the comfort of their keyboard.

“Online tyre retailing enables consumers to compare products online and still get it fitted locally” Furness comments. “From research we have done consumers don’t want to have to ring around trying to get prices on tyres, or go into stores to get a quote, then have to go back a few days later to get the product”.

Hyperdrive.co.nz has a network of over 200 garages across the country. These garages are carefully selected to ensure quality service. “Our garage network is growing every week with enquiries from new companies wishing to become part of our Hyper Drive Fit Network”.

Hyper Drive which is based in Penrose, Auckland have invested heavily in the online stock infrastructure to ensure their system shows live stock of what is available to the consumer. They have a logistics team who organise for the tyres to be sent to the garages when an order has been placed.

The entire process is very simple. The consumer enters their tyre size (or in some cases you can even enter your number plate) and a range of available tyres will appear. You choose which tyres you want, where you want to get them fitted and on what day and time. Payment is all done online then the consumer simply turns up at the booked time and their tyres will be there ready to be fitted.

“It just eliminates so much time from the traditional tyre buying process. Let’s be honest, there aren’t many people who enjoy buying tyres so why not make it as convenient and easy for them” says entrepreneur Simon Furness.

Hyper Drive offers all the leading tyres brands including Pirelli, Goodyear, Nexen, Hankook, Yokohama and more.

Hyper Drive is part of the online retail business Hyper Group which also operates www.hyperride.co.nz and www.hypertyres.co.nz.

| A HyperDrive Release | March 15, 2017   ||

With a few different players now in the game, the race is on to win over governments and get the once seemingly far-fetched Hyperloop up and running. For LA-based startup Hyperloop One, that means rolling into Dubai with photos of its full-scale test track and a few renderings of what the first Middle Eastern Hyperloop terminals might look like.

Hyperloop One has been busy planting its fingers in different continental pies, with a view to one day using its ultra-fast transport system to move passengers all around the world. This has included agreements with governments in Russia, Finland and Dubai to explore the technology's potential on various scales, with the latter possibly growing to embody a new, blazing fast transport network across the Gulf region.

Hyperloop One harbors ambitions of connecting cities across the Middle East

To begin with, Hyperloop One has signed a deal with port operator DP World to conduct a feasibility study exploring the potential of the system to ferry cargo from container ships to a depot further inland.

But it is hoped that this is just the first step, with Hyperloop One harboring ambitions of connecting cities across the Middle East. This would include a 12-minute journey between Abu Dhabi and Dubai, a 139 km (86 mi) trip that currently takes around an hour and a half by road. But that's with little traffic. Hyperloop One reckons that 4,000 vehicles travel this route everyday, with the congestion costing the economy US$800 million in lost working hours.

The Hyperloop One test-track is 500 meters in length

To show how serious it is, Hyperloop One CEO Rob Lloyd accompanied his keynote address at the Middle East Rail conference in Dubai today with images of a full-scale test track in the Nevada desert, along with a few renderings of Hyperloop terminals. Dubbed the DevLoop, the 500-meter long (1,600 ft) test track has a 3.3-meter (11 ft) diameter and sits 30 minutes outside Las Vegas.

Last year Hyperloop One held a public demonstration using a smaller, open air test track, where it showed off the propulsion system that will one day be used to shuttle passenger capsules through vacuum-sealed tubes at close to the speed of sound. It plans on conducting the first public trials using its new sealed test-track in the first half of 2017.

|  Source: Hyperloop One  |  March 09, 2017  ||

Air New Zealand Chief Executive Officer Christopher Luxon is today in Washington DC where he met with United States Secretary of Transport Elaine Chao, a member of President Trump’s Cabinet.

Mr Luxon also met senior officials in the Transport Security Administration and the Department of Homeland Security.

The meetings were an opportunity to identify the importance of the United States as a source market for visitors to New Zealand and as a destination for New Zealand travellers. United States visitors to New Zealand are up 19.8%, with almost 300,000 visitors arriving in the year to January 2017. The success of Air New Zealand’s new Houston service, which makes travel easier for visitors from the mid-west, east and south of the United States is a key factor in this growth.

Today’s high level meetings were also an opportunity for Air New Zealand to seek improvements to its customers’ experience in US airports. Particularly, the airline is seeking a streamlined process for its passengers transiting Los Angeles (LAX) to London on NZ1.

“Air New Zealand is one of only a very few airlines that have an international transit in the United States like NZ1. We think there’s room for an improved process that would benefit customers without compromising security, and would also reflect well on LAX as a major hub airport,” says Mr Luxon.

“It was a privilege to meet Secretary Chao today and to seek her sponsorship for our efforts. We are grateful to New Zealand’s United States Ambassador Tim Groser and his embassy team in Washington DC for facilitating today’s meetings. A great example of New Zealand punching above its weight on the international stage.”

|  An Air New Zealand release  |  March 8,2017  ||

Land Information New Zealand (LINZ) has developed a world leading tool for improving shipping safety in New Zealand, says Minister for Land Information Mark Mitchell.

“The Hydrographic Risk Assessment uses the latest technology to identify risks and help update navigation information,” Mr Mitchell says.

The tool combines data from a variety of sources to produce heat maps of New Zealand waters where risks are highest, ensuring updates are given where they are needed most.

“It is important New Zealanders are kept safe at sea, and the Risk Assessment will help ensure skippers have access to the latest and most accurate navigation information.”

LINZ is focused on improving information for areas such as Queen Charlotte Sound, the Tory Channel, the Approaches to Auckland, and Tamaki Strait, which were identified to have higher levels of navigational risk than other shipping routes in New Zealand.

“The tool also helps LINZ provide navigation services for New Zealand’s four million square kilometre Exclusive Economic Zone, supporting our shipping, cruise, and tourism industries.

“As vessels get bigger and shipping routes get busier, it is important we continually map the sea floor and update charts and other information,” Mr Mitchell says.

LINZ is working with Maritime New Zealand, harbour masters, and others to assess results and plan other charting work.

Read the results of the New Zealand Hydrographic Risk Assessment on the LINZ website: http://www.linz.govt.nz/sea/charts/annual-work-programme/new-zealand-hydrographic-risk-assessment

|  A beehive release  |  February 24, 2017  ||

The Terms of Reference for the Fuel market Financial Performance Study Energy have been released today, says Energy and Resources Minister Judith Collins.

The Study, being undertaken by the Ministry of Business, Innovation and Employment, will take an in depth look at fuel company finances to determine if the price New Zealanders are paying at the pump is reasonable.

“Petrol and diesel are fundamental to New Zealander households and businesses and I am concerned that the difference between what fuel is imported and sold for (fuel margins) has steadily increasing over a number of years.

“We need to know why this is happening and determine if what people are paying at the pump is reasonable or whether companies are making super-normal profits.

“This study will offer new insights into our fuel sector and help us understand if there is an issue and, if there is, show where we need to focus to address it.

The Fuel Market Financial Performance Study will look specifically at returns on capital employed of the major businesses at different parts of the value chain. These returns will then be assessed against an appropriate cost of capital and compared with fuel suppliers in other countries.

The Study will also consider margins and other market performance measures as another way of providing insight into industry profitability.

“This is a technical study but I do expect some observations to be made about regional price differences.

“I am pleased that the companies involved – Z Energy, BP, Mobil and Gull – have all said that they will co-operate with MBIE. The companies were also consulted on the Terms of Reference,” Ms Collins says.

The Fuel Market Financial Performance Study is expected to be completed by June.Related Documents

Terms of Reference into Fuel Price Inquiry (pdf 353.62 KB)

|  A Beehive release  |  February 24, 2017   ||

Following the announcement of Managing Director, Michael Brockhoff's retirement from MaxiTRANS, the trailer builder has appointed Dean Jenkins as his replacement, effective 1 March.

According to MaxiTRANS, Jenkins (pictured) brings two decades of industry experience to the role, most recently as COO and Executive Director of leading engineering business, Weir Group.

Chairman of MaxiTRANS, Robert Wylie, said the Board was delighted to appoint a senior international executive of Jenkins' calibre and experience to the role.

"Dean has over 20 years' executive experience in managing transport and manufacturing businesses. He has a strong track record of successfully leading large, complex and truly global companies, driving change and improvement throughout his career," Wylie said.

"This in-depth international transport and engineering experience and leadership capability means he is ideally suited to build MaxiTRANS' next phase of development to generate superior value for shareholders."

Previous to his role at Weir Group, Jenkins also was CEO of UGL Rail, Australia's largest supplier and maintainer of rolling stock with operations in Hong Kong, New Zealand and supply chain in China.

He also spent 11 years in senior leadership roles with Qantas, including the position of Group General Manager/Head of Engineering, Material and Logistics.

Jenkins said he was delighted to have been appointed to the position of Managing Director of MaxiTRANS.

"I am excited about the prospect of leading MaxiTRANS and working with the Board and the leadership team to build the company's competitive position. The company has strong brands and enduring customer relationships which provide a strong platform to generate growth opportunities right across the business," Jenkins said.

| A Trailer release  |  February 13, 2017  ||

The Taxpayers’ Union says that the focus on petrol margins earned by fuel companies, is a classic ‘bait and switch’ by politicians to avoid questions about the enormous taxes they impose at the pump. Responding to Energy and Resources Minister Judith Collin’s announcement of a market study into fuel prices/returns to be undertaken by the MBIE, Jordan Williams, Executive Director of the Taxpayers’ Union, says:

“While an examination into petrol company fuel margins is welcome, it is a bit rich to blame high fuel prices on the fuel companies when the amount of tax on fuel is nearly 20-times the reported profit by fuel companies on a per litre basis.”

“Z’s net profit on fuel is around 5 cents per litre. In comparison, at the current price of 91 octane total tax is 97 cents per litre.”

“If MPs were genuine in their desire to find out who is rorting motorists, they’d be examining petrol taxes, not just fuel margins. Until they do, their concerns about petrol prices are little more than crocodile tears.”

|  A NZTaxpayers Union release  |  February 9, 2017  ||

The Automobile Association is calling for fuel companies to explain to motorists why the national price of fuel rose 5 cents per litre during January, despite no increase in commodity prices or a drop in the exchange rate.

“Normally retail prices rise following an increase in the cost of importing fuel, but that wasn’t the case in January,” says AA PetrolWatch spokesperson Mark Stockdale.

“While commodity prices did rise in December, they have since fallen slightly while the New Zealand dollar has strengthened by over three cents. If anything, the retail price should have fallen, not risen by five cents. This is most unusual, and motorists deserve an explanation,” Mr Stockdale said.

Mr Stockdale said some service stations had been substantially discounting fuel, selling it for under $1.70 a litre. “At those prices, the service stations are selling it at or below cost. The AA suspects the rise in the national price – excluding any discount – is to help cover the cost of selling fuel at substantially lower prices elsewhere, and we’d like the fuel companies to confirm that.”

“The last time fuel company margins came close to the current level, the Government put the fuel companies on notice and asked them to justify the high margins.

“The AA believes the current high margins, and the unexpected January price rises, warrant further investigation as our Members are very confused by the large range in pricing,” Mr Stockdale said.

|  An AA release  |  January 31, 2017  ||