WASHINGTON: Private consortium Lonsdale is from today responsible for the Port of Melbourne’s commercial operations, with the Victorian government confirming financial closure of the $9.7bn, 50-year lease. A deal was announced mid-September following months of negotiations, albeit financial settlement did not occur until today. The lease is central to the state government’s infrastructure plans, notably removing 50 level crossings that currently stifle smooth traffic movements.
The state is to retain responsibility for the harbour master, Station Pier terminal, safety and environmental regulations, waterside emergency management and marine pollution responses. Treasurer Tim Pallas, a former ports minister and the primary driver of the deal from the government side, said Lonsdale’s investment would consolidate the Port’s position as the nation’s largest container and cargo port.
“The lease of the Port of Melbourne is an outstanding achievement that underlines the continued high performance of the Victorian economy – the fastest growing in the country,” Treasurer Tim Pallas said. “We promised to lease the port, get rid of Victoria’s most deadly and congested level crossings and create thousands of jobs, and that’s exactly what we are doing.” Some observers have noted however that the Victorian government has spent a lot of money sweetening the deal.
The Victorian government is also talking up the benefits of a $200m Agriculture Infrastructure and Jobs Fund from the deal, with a view to growing regional economies, boosting exports and supporting Victorian farmers “from paddock to port”. The government says Victoria’s regions will benefit with 10% of the lease proceeds being invested in regional and rural infrastructure projects.
During the lease term, Lonsdale is to maintain access to public walkways and bike paths with commercial and recreational vessel access are expected to be unaffected by the agreement, with the port to be returned to public hands at the end of the lease (2066).
