Trailer Magazine

Port of Melbourne sold

  • Posted on Monday 19th, September 2016.

The Victorian Government has successfully leased the Port of Melbourne for more than $9.7 billion to the Lonsdale consortium.

The Lonsdale Consortium, comprising of the Future Fund, QIC, GIP and OMERS signed a lease of the port’s commercial operations for a term of 50 years. “Through this lease, we are supporting our State’s vibrant regional communities, putting infrastructure and agriculture back at the heart of Victoria’s economic development,” said Luke Donnellan, Victorian Minister for Ports and Acting Minister for Regional Development.

The Victorian Transport Association (VTA) supported the announcement. “The VTA welcomes the Victorian Government's lease of the Port of Melbourne,” said Peter Anderson, VTA Chief Executive. “The Port is one of the state's greatest assets and the magnitude of the lease underscores it's importance for safeguarding the economic prosperity of the state, which freight operators contribute significantly to. “The much needed funding the lease unlocks will significantly improve the state's transport networks, especially in regional areas. With the surplus funding of the $9.7 billion lease we hope that vital new infrastructure such as the North East Link can be seriously pursued.”

The Australian Logistics Council (ALC) said the lease must be accompanied by significant investment in road and rail infrastructure, linking the port to the wider transport network to maximise its economic contribution to Victoria and the nation. 

“Now that an agreement has been reached on the long term lease of the Port, ALC encourages the State and Commonwealth Governments to prioritise infrastructure investment to the port to ensure it can meet its economic potential,” said Michael Kilgariff, ALC Managing Director. “An appropriately regulated port, supported by efficient road and rail links, is vital to sustaining the Victorian economy and driving productivity improvements across the supply chain.”

According to the State Government, the lease will remove 50 of our most deadly and congested level crossings, and create thousands of jobs, with 10 per cent of lease proceeds to be invested in regional and rural infrastructure projects, totalling more than $970 million.

© Copyright Prime Creative Media. All rights reserved.

Find us on Google+