ICG's clients fear sale will reduce competition

A number of customers of Irish Continental Group's (ICG) cargo facilities in Dublin port have expressed concerns that competition could be reduced in the docks area if the One 51 Capital/Doyle Shipping Group consortium gains control of the listed ferry operator.

The Doyle Group already controls the Portroe terminal on the north quays of Dublin's docks area. A takeover of ICG would give the Cork-based company a significant interest in Dublin Ferry Terminal (DFT), which is operated by ICG. Both terminals handle large volumes of lift on/lift off container traffic.

Portroe and DFT are two of the three biggest cargo handling facilities in Dublin Port. The other is MTL, which is run by Port of Liverpool owner Peel Holdings.

Fred Steeneken, the Netherlands-based managing director of DFDS Container Line, said he was following the takeover battle with "great interest".

"We do see it as a concern that one of the groups that could take over ICG is the Doyles," said Mr Steeneken. "That would mean that the terminals on the north bank [ of the quay] would be in the one hand. As a customer of the port of Dublin, that would be a concern to us."

Mr Steeneken stressed that the Doyles and ICG both run "professional" operations in Dublin Port.

Mr Steeneken said DFDS puts more 30,000 containers through Dublin port every year. "We are an important customer," he said.

Norman Wilkinson, managing director of International Maritime Agencies (IMA), also has concerns on competition issues.

IMA is an agent for shipping group Hamburg Sud, which operates a vessel from Dublin port about every 10 days. It carries Irish exports to the Mediterranean area.

"We feel that any reduction in competition would not be good for industry," Mr Wilkinson said. "It's essential for competition that the three separate options [ terminals] are maintained."

The One 51/Doyle group has been given until 5pm tomorrow to bid for ICG or withdraw its offer. It must bid at least €20.75 per share.

ICG is already subject to a €18.50 a share bid by a management team headed by chief executive Éamonn Rothwell.

A formal bid by the consortium is expected to be reviewed to the Competition Authority.

A spokesman for the consortium declined to comment.