COMPETITION ACT: BLANKET EXEMPTION PROPOSED FOR SOME PORT AND RAIL INDUSTRY PRACTICES

COMPETITION ACT: BLANKET EXEMPTION PROPOSED FOR SOME PORT AND RAIL INDUSTRY PRACTICES

• 19 June 2024
• Trade, Industry & Competition
• SA Legal Academy

The Department of Trade, Industry & Competition has called for input by 4 July 2024 on proposals that could see port and rail industry stakeholders entering into agreements and/or participating in certain practices otherwise prohibited under the Competition Act, 1998.

Once in place, the block exemption is expected to facilitate the level of ‘collaboration’ deemed necessary to:

• ‘reduce costs, improve services and minimise losses caused by operational inefficiencies and infrastructure capacity shortages’, and
• ‘resolve … challenges’ being experienced across the ports and rail sector.

To that end, the draft exemption refers expressly to rail network and port infrastructure repair and maintenance, as well as to the co-ordination of traffic flow between South Africa’s ports.

Provision is also made for procedures to be followed by parties considering agreements or participating in practices covered by the proposed new block exemption.

The unusually short commentary period tends to point to the exemption’s imminent finalisation and implementation.

• draft block exemption

Published by SA Legal Academy Policy Watch

Follow us on X @SALegalAcademy (you can also join us on LinkedIn and Facebook)

0 COMMENTS

LEAVE A COMMENT