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ICTSI has started discussions with the Port of Melbourne and its owners as well as the Victorian Government and other key industry stakeholders for a US$343-million (AUD500-million) project for the biggest port in Australia
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The proposal involves a phased development of the Webb Dock North Container Terminal and integrate its operations with ICTSI subsidiary, Victoria International Container Port
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If given the green light, the development is expected to increase VICT’s container capacity to 3.7 million twenty-foot equivalent units
Port operator International Container Terminal Services Inc. (ICTSI) is proposing a US$343-million (AUD500-million) project for the Port of Melbourne in Australia.
The proposal involves a phased development of the Webb Dock North Container Terminal that will integrate its operations with the Victoria International Container Terminal (VICT), a 100% subsidiary of ICTSI.
In a statement, ICTSI executive vice president Christian 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.
The development would increase VICT’s container capacity to 3.7 million twenty-foot equivalent units (TEU), allowing for four container berths with the ability to service vessels up to 14,000 TEUs and up to 367 meters in length. The proposal would dramatically increase efficiencies and pave the way for larger ships to berth at Australia’s pre-eminent port.
ICTSI has already engaged consulting 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.
ICTSI said its proposal can deliver cost savings of more than US$165 million (AUD240 million) and spread the timing of spend over a longer period while introducing significant capacity into the market sooner.
Gonzalez said ICTSI has made it clear that the company is well-prepared to test its proposal in any competitive process that the Port of Melbourne requires under its plans for the future of Webb Dock.
“We look forward to sharing further independent analysis of our proposal alongside all details with the Port of Melbourne and other key stakeholders in due course.”
The Port of Melbourne is the largest capital city container and general cargo port in Australia, handling more than one-third of the nation’s container trade. It covers an area of 143,00 square meters and covers an area at the mouth of the Yarra River. Built in 1889 with a draft depth of 14.7 meters. It currently has 31 berths with an annual TEU count of 3.02 million.
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