The Port of Melbourne has secured a long-term lease with the Victorian government to access additional land that will improve the state’s supply chain efficiency and resilience.
The new agreement will see approximately 29 hectares of the former Melbourne Markets site leased to the port until 2066 in line with the existing 50-year port privatisation lease.
Port of Melbourne currently expects to invest over $200 million into development of the site, which will continue to support the $36 billion freight sector that currently employs 260,000 Victorians.
The addition of the land and transformation of the Port precinct will play a critical role in maintaining Port of Melbourne’s status as a key trade gateway for south-east Australia.
Port of Melbourne CEO Saul Cannon says the acquisition of the additional land is important in the face of a rapidly growing industry.
“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,” Cannon says.
“Port of Melbourne is proud to invest in developing the site to support forecast growth and demands.
“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.”
Minister for Ports and Freight Melissa Horne says the transformation of the Port precinct is a key measure in reducing the number of trucks on Victorian roads.
“This is a great deal for Victoria,” Horne says.
“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 chain.”
The transaction remains subject to satisfaction of certain conditions which are set to be satisfied by the end of 2025.
The expansion will be the port’s largest since the signing of the current 50-year lease in 2016.
ATN