The competition watchdog has raised concerns about Aurizon’s proposed $2.35 billion acquisition of freight haulage group One Rail, arguing it could “substantially” reduce competition in the rail industry.

“By reducing the number of competitors in the supply of coal haulage in NSW and Queensland from three to two and removing an important competitor to Pacific National and Aurizon, we have preliminary concerns that the proposed acquisition of One Rail by Aurizon would be likely to substantially lessen competition,” said Australian Competition and Consumer Commission (ACCC) chairman Gina Cass-Gottlieb.