10th January, 2018, the Commission, inter-alia , noted that the terminalling infrastructure at Visakhapatnam port has various components/ facilities which includes unloading arm at the jetty, connecting pipelines, blender, cavern and the cross country pipeline . Each of these components performs a unique function and one cannot be regarded as a substitute of each other. However, whether all of these can be considered as one composite market or some of them would constitute a separate relevant market would depend on users perspective based on price, characteristics and intended use. The Commission further observed that SALPG allowed OMCs to bypass cavern, upto 25 percent in case of pre-mixed LPG imported through VLGCs, to meet their tank truck loading requirements. The use of cavern was thus, not an essential prerequisite. Similarly, pre-mixed LPG imported by OMCs did not require blending services at the terminal. Hence, the Commission observed that blending services and storage services at Visakhapatnam port are separate relevant markets, apart from services for unloading and transmission of propane/butane/LPG to the blender. The Commission was also of the view that adoption of any of the alternative market definitions would result in the same competition assessment given that SALPG is the only player present in the upstream terminalling services market at Visakhapatnam port.
