Port Capacity Enhancement Program

As Victoria’s population and economy grows, container trade at Port of Melbourne expected to double in the next 30 years.

To cater to this growth, Port of Melbourne is engaging about the next stage of container capacity, called the Port Capacity Enhancement Program (PCEP).

This program is outlined in our Draft 2055 Port Development Strategy and involves relocating the Tasmanian Terminals to Victoria Dock and delivering the Webb Dock North Container Terminal.

PCEP will ensure Port of Melbourne continues to play a significant role in driving forward the Victorian economy.

Project Overview

Subject to approvals and stakeholder engagement, new capacity at the Webb Dock North Container Terminal is targeted for 2036 and would be a milestone in the history of Port of Melbourne. The project would also secure the long-term future for the Tasmanian trades at Victoria Dock.

A project summary document is available for download here.

Delivery Timing

Targeting 2036 for additional capacity has been informed by stakeholder engagement, analysis of tenant impacts and assessment of delivery schedules.

This proposed timing balances meeting demand for the benefit of Victoria and impacts on the broader supply chain.

There is significantly more work to be done across all elements of new capacity planning, and we look forward to further refining our program and engaging with our stakeholders.

Engagement

PoM is committed to stakeholder engagement that is inclusive, timely, genuine and transparent. Our approach is guided by our commitment to comply with our regulatory obligations, and our intent to listen to and be responsive to our stakeholders.

We recognise that engaging stakeholders in our planning process for PCEP leads to informed decision-making that balances the needs and interests of relevant parties.

For more information about engagement currently being undertaken by the Department of Treasury and Finance, visit Port of Melbourne – Pricing Order Amendments | Engage Victoria.

Stage Two – Cost Benefit Analysis

From 24 May to 29 July 2024, PoM undertook Stage Two engagement on the PCEP Draft Cost Benefit Analysis. Feedback was provided by more than 20 stakeholders and an overview of what we heard is available here.

PoM has reviewed submissions, closed the loop and identified:

There are some aspects of the draft CBA that Deloitte will undertake further work on. This includes identifying details relating to other states, environmental elements, additional sensitivity analysis and reviewing some key assumptions.
In most cases PoM has been focused on using additional insights provided by stakeholders to inform the draft 2055 PDS, which is a mandated process in its long term planning.
PoM continues planning for development to meet demand and had a number of related workstreams underway including ongoing bilateral discussions with stevedores in response to feedback received through the draft CBA and other processes to understand potential capacity and productivity enhancement options.

All engagement materials can be viewed below:

Engagement included:

Stage One – Technical Reports

In September 2022 PoM began a process to collect feedback on three technical reports as the key drivers of the project. Since this time, a robust engagement program has captured feedback from stakeholders on three technical reports, assumptions and scenarios, which have been used to inform technical analysis, as well as providing insights on a number of other topics.

Final versions of the reports including an engagement summary report can be viewed by clicking the below: