Melbourne container terminal capacity and land transport access

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Melbourne container terminal capacity
Priority Initiative
Location
Melbourne, Vic
Geography
Fast-growing cities
Category
National Connectivity
Problem/Opportunity timeframe
Longer term (10-15 years)
Proposed By
Victorian Government
Date added to the IPL
17 February 2016

Problem
The Port of Melbourne is Victoria’s busiest port and the largest container and general cargo port in Australia. Container traffic at the port is projected to grow by 2.6% per year, from 2.9 million Twenty-Foot Equivalent Units (TEUs) in 2018 to around 9 million TEUs in 2050. The 2015 Australian Infrastructure Audit identified that, even with planned expansions, additional container terminal capacity will be required before 2031.

The development of additional container terminal capacity in Melbourne – with dedicated connections to the port, proposed metropolitan terminals, regional hubs and the national rail system – will help to alleviate congestion caused by road freight movements.

Currently, only around 10% of the Port of Melbourne’s container trade is moved by rail to and from importers and exporters. This places significant pressure on the surrounding road network, which carries the remaining share. Given Melbourne’s central role in Australia’s freight supply chain, inadequate port capacity and transport access in Melbourne could have broader national consequences.

Proposed initiative

The initiative proposes planning and construction of additional container terminal capacity in Melbourne to cater for projected increases in containerised freight volumes.

This initiative includes optimising the capacity of existing ports, as well as longer-term planning and potential site preservation for future facilities. Infrastructure Victoria has advised the Victorian Government that Bay West should be the preferred location for a second major container port.

This initiative was updated in February 2019 to include the near-term landside transport initiatives needed to support increased port capacity, including road and rail access from metropolitan, regional and national networks.

A new Port Development Strategy for the Port of Melbourne is currently being developed by Port of Melbourne Operations.

The Victorian Government will also prepare a Victorian Ports Strategy to outline how Victoria’s future exports and imports could be handled across current and future commercial ports. At the same time, the Victorian Government will undertake further planning work to confirm Bay West as the preferred site for a second major container port.

Access for higher capacity vessels should also be considered as part of this planning. A separate initiative for East coast deep water container port capacity is included on the Infrastructure Priority List.

Next steps

Proponent to identify initiatives and develop options (Stage 2 of Infrastructure Australia’s Assessment Framework).