By Tyla Lee Coertzen

On 26 February 2024, the Competition Commission of Mauritius (“CCM”) announced the launch of a market study in the ports sector established in terms of section 30 of the Mauritian Competition Act of 2007 (the “Act”).

Section 30 empowers the Executive Director of the CCM to, inter alia, undertake general studies on the effectiveness of competition in individual sectors of the economy in Mauritius. In the media release published by the CCM,[1] it is stated that the outcome of such study will be to enable the CCM to make recommendations to the Mauritian government in an effort to improve the market for the benefit of consumers, businesses and the Mauritian economy at large. The CCM’s media release confirms that the study is aimed at identifying potential distortion in the competitive process that might have a negative effect on competition. Importantly, a market study undertaken in terms of section 30 is not to be construed as a formal investigation of restrictive practices by the CCM, but rather a general consideration of any relevant market to ascertain further information the effectiveness of competition in the sector. The Act does not make provision for the consideration of public interest effects in respect of competition law in Mauritius. Thus, presumably, the market study will focus only on competition-related effects.

It is said that several stakeholders have notified the CCM of conduct within the ports sector that potentially has a negative effect on competition, further, that similar issues have been faced by Greece, Romania and Mexico, where the competition authorities have also conducted market studies have also been undertaken in respect of ports.

The Mauritian economy is heavily dependent on the harbor located in Port Louis, which is said to handle over 95% of the total volume of external trade to and from Mauritius and amounts to a significant portion of the Mauritian GDP. It is predominantly regulated by the Mauritius Ports Authority as well as the Cargo Handling Corporation.[2]

For purposes of conducting the market study, the CCM has appointed a ‘study team’ consisting of its own staff as well as experts in the competition law and economics fields. A key individual part of the team is John Davies, a member of the United Kingdom Competition Appeal Tribunal and who served as the Head of the Competition Policy Division at the Organisation for Economic Cooperation and Development (“OECD”). John Davies also previously served as the Chief Executive of the CCM. Other key members of the study team include Simon Roberts, a Professor at the School of Economics of the University of Johannesburg as well as Thando Vilakazi, the Director of the University of Johannesburg’s Centre for Competition, Regulation and Economic Development (“CCRED”).

Interestingly, in an OECD Policy Roundtable conducted in 2011,[3] the OECD Competition Committee debated the issue of competition in ports and port services, building from key experiences of relevant jurisdictions. In this regard, it was noted that the two main competitive restraints facing ports come from other modes of transport and other ports, however it was agreed between OECD Member States that generally other modes of transport (i.e., road, rail and air) pose very limited constraints on maritime transport. However, given that the Port Louis handles close to all external trade in Mauritius, and operates as the only port in Mauritius, it is clear why the CCM would wish to ensure that the port works efficiently from a competition perspective.

Stakeholders who wish to engage with the CCM to participate in the market study are encouraged to contact the CCM.

[1]             See the media release at https://competitioncommission.mu/wp-content/uploads/2024/02/MR-Port-Market-Study.pdf.

[2]             See https://www.trade.gov/country-commercial-guides/mauritius-port-expansion-and-bunkering.

[3]             See the OECD Competition Committee Roundtable on Competition in Ports and Port Services at https://www.oecd.org/daf/competition/48837794.pdf.