Australia’s largest general cargo and container port, Port of Melbourne, has reached a significant milestone with the Victorian Government by securing a long-term lease for additional land. This agreement, involving the former Melbourne Markets site, marks a crucial step towards enhancing Victoria’s supply chain efficiency and resilience.
The deal, which extends to 2066, aligns with the Port of Melbourne’s existing 50-year port privatisation lease and represents the most substantial expansion of the port since its initial lease agreement in 2016. The port will lease approximately 29 hectares of land and plans to invest over $200 million into developing the site. This expansion is not just a matter of logistics—it’s a critical investment in the future of Victoria’s $36-billion freight sector, which provides employment for around 260,000 people across the state.
With container volumes at Port of Melbourne projected to double by 2050, the port’s CEO, Saul Cannon, emphasised the importance of this strategic move. “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,” Cannon stated.
This development is aligned with the Victorian Government’s 2018 Victorian Freight Plan, which aims to streamline logistics and bolster the state’s infrastructure. The Port of Melbourne’s new site will be used for various purposes, including truck parking and container storage, which are essential for improving traffic flow around the port. The timing also coincides with the anticipated opening of the West Gate Tunnel, a major infrastructure project designed to alleviate congestion and enhance transport links to the port.
At the announcement of the lease, Minister for Ports and Freight, Melissa Horne, highlighted the broader benefits of the deal. “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,” Horne said.
The former Melbourne Markets site, currently owned by VicTrack, is ideally situated for port use. Its location allows for the consolidation of freight and logistics activities closer to the port, thereby redefining freight movement throughout the region. This move is expected to relieve pressure on inner-west Melbourne, enhancing overall supply chain efficiencies and reducing community impact.
Saul Cannon added that the site’s strategic location positions the Port of Melbourne to remain at the forefront of Australia’s freight and logistics industry. “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,” he noted.
The transaction is subject to certain conditions that are expected to be met by the end of 2024. If completed, this lease agreement will mark a pivotal moment in the evolution of the Port of Melbourne, ensuring it remains a key trade gateway for Southeastern Australia.
