Australia’s busiest container port has struck a deal with the Victorian Government to access additional land, boosting supply chain efficiency and resilience.
This strategic transformation of the Port precinct will play a critical role in preserving Port of Melbourne as the key trade gateway for Southeastern Australia, while reducing congestion and minimising impact to surrounding communities.
Port of Melbourne will lease approximately 29 hectares of the former Melbourne Markets site to 2066 in line with its existing 50-year port privatisation lease. This represents the port’s largest ever expansion since the long-term lease was granted in 2016. Based on current planning, Port of Melbourne expects to invest more than $200 million into the development of the site.
Significantly, the future-focused integration of the site into the Port precinct supports a $36-billion freight sector that employs 260,000 Victorians.
Port of Melbourne CEO Saul Cannon, said, “With container volumes at Port of Melbourne expected to double by 2050, access to additional land at the former Melbourne Markets site unlocks opportunities that are critical to the future needs of Victoria. Port of Melbourne is proud to invest in developing the site to support forecast growth and demands.”
Consistent with the Victorian Government’s 2018 Victorian Freight Plan, Port of Melbourne will invest in developing the site for a range of uses, including truck parking facilities and container storage. The establishment of port functions at this site will improve traffic movement in the area, complementing the West Gate Tunnel when it opens.
Victorian Minister for Ports and Freight Melissa Horne, said, “This is a great deal for Victoria – we’re getting more trucks off local roads, increasing the amount of freight the Port of Melbourne can handle, boosting trade and the economy, while strengthening Victoria’s supply chains.”
Owned by VicTrack, the site is optimally positioned for port use. By accommodating freight and logistics functions closer to the port, the efficient use of the former Melbourne Markets site will redefine the movement of freight, in turn, relieving pressure on the inner west.
“For a city port in Australia’s soon-to-be largest city, the site’s strategic location and proximity to existing port functions enables a visionary transformation of the Port precinct that will enhance supply chain efficiencies, reinforcing Victoria’s position as the freight and logistics capital of Australia,” Mr Cannon said.
The transaction remains subject to satisfaction of certain conditions which are currently expected to be satisfied by the end of 2024.
Image: Graham Drew Photography/shutterstock.com
