NMa increases its attention to the functioning of the Dutch water transport market

The Netherlands Competition Authority (NMa) increases its attention to competition in the domestic water transport industry as a result of a market study carried out by research and consultancy firm ECORYS, and commissioned by the NMa, as well as after receiving concrete tip-offs and indications from the market, and having conducted research of its own. The market study provides a general overview of how well the water transport industry functions as a market, and it specifically examines three market segments: sand and gravel transport, tanker traffic, and container transport.

Sand and gravel transport
Many inland shippers in the sand and gravel transport segment surprisingly say that they operate below cost price. 'This could hint at fierce price competition in this segment. While there is nothing wrong with that, the NMa does, however, increase its attention to parties that possibly collaborate to influence the price-making process in this segment,' member of the Board of the NMa René Jansen says. 'The NMa is therefore interested in indications coming from the market that concern possible agreements or distributions of clients and/or areas that negatively affect competition in this segment,' Mr. Jansen says.



Tanker traffic
The results of the market study indicate that, particulalry, small, private inland water transport undertakings in the tanker traffic segment have a weak market position vis-à-vis the other, predominantly major parties such as oil companies and chemical companies. Inland water shipping companies face high barriers to entry and exit, considering the enormous investments in ships, and because those ships often cannot be used for other kinds of inland water transport.



Container transport

The third segment that the NMa had ECORYS look into, the contrainer transport segment is the fastest growing segment within the water transport indsutry. This segment is characterized by ports having strong oligopolistic traits. Transhipment in ports is controlled by a few international stevedore companies. Freight transport companies therefore have limited options to switch. Inland containter transport has experienced a rapid development in the past ten years. The Dutch network of more than twenty inland terminals is in constant flux. Inland terminals increasingly cooperate on a regional level, and participate in other inland terminals.