Aurizon's (ASX:AZJ) plans to sell its intermodal business to rival Pacific National have been thrown into doubt.
The competition watchdog the ACCC warn the sale would hurt the freight industry market.
They are worried about the reduction of intermodal rail linehaul providers from one to two in Queensland.
The rail operator wanted to sell its business, which transports containers, to Pacific National and trucking group Linfox as well as selling the Acacia Ridge interstate terminal south of Brisbane.
The sales were expected to raise about $220 million.
Shares in Aurizon (ASX:AZJ) are trading 0.11 per cent higher to $4.41