ICTSI maps out $343m investment for Melbourne container terminal

The proposal would pave the way for larger ships to berth at Australia’s largest port.

ICTSI could invest $343m in addition to the more than $481m it has already invested in Victoria since the establishment of VICT in 2014; making ICTSI one of the largest foreign infrastructure investors in the state of Victoria. VICT is 100% owned by ICTSI.

Under the proposal, ICTSI would undertake a phased development of the Webb Dock North Container Terminal and integrate its operations with VICT. The design would deliver higher operating efficiencies at a lower development cost and, importantly, with a significantly reduced environmental impact.

The development would increase VICT’s container capacity to 3.7m teu allowing for four container berths with the ability to service vessels up to 14,000 teu and up to 367 meters in length. 

“Victoria’s growing economy presents the Port of Melbourne with the opportunity to consolidate its position as Australia’s number one container port,” said ICTSI’s executive vice president, Christian Gonzalez.

“Our vision for this operation is in lockstep with that of the Port of Melbourne’s own vision as it examines strategies to expand capacity and facilitate the growth of Victorian economy,” he added.

ICTSI has engaged multiple global firms to assess the merits of its proposal in comparison to current expansion designs for the Port of Melbourne.  Jacobs Engineering undertook a detailed technical assessment, including estimates of construction costs, while Boston Consulting Group focused on market and economic assessments. The external reports conclude that ICTSI’s proposal could deliver cost savings of $165m and spread the timing of spend over a longer time period while introducing significant capacity into the market sooner.

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Gonzalez said preliminary discussions had been held with the Port of Melbourne and its owners as well as the Victorian Government and other key industry stakeholders.