New kid on the block

HPH was seen as the forerunner in the concession process, taking a view that a Melbourne base would complement its facilities in Brisbane and Sydney. HPH must be disappointed that its ability to offer multi-port packages is now restricted to those two bases.

It seems ICTSI’s strategy of partnering up with Anglo Ports was a shrewd move: the Australia-headquartered company is headed up by Captain Richard Setchell, former chairman and managing director of P&O’s global ports empire. Capt Setchell and his team have an intimate knowledge of container terminal operations on the Australian waterfront which no doubt swayed the decision making process.

Webb Dock container terminal will be the operator’s first terminal in Australia, marking a sizable coup for this fast-growing Philippines-based operator.

But the concession is not without its naysayers. The Maritime Union of Australia was apparently “surprised” at the choice of the consortium and was quick to criticise the introduction of ICTSI into the Melbourne mix.

Past labour ‘issues’ in Portland, Oregon and in Honduras seem to have ruffled union feathers.

Paddy Crumlin, president of the International Transport Workers’ Federation, said that having one-off terminal operators went against the industry’s preference for strong networks in logistics and distribution. He conceded that the union would “work with them to optimise the standards”, but added that it is a “surprising and a worrying development”.

Construction on phase 1 of the terminal will start later this year and it will be operationally ready by the end of 2016. Phase 2 should be up and running a year later. When completed, the 35.4 hectare terminal will have six post-panamax STS cranes on 660 meters of berth, and will be able to handle up to 1.4m teu per year. The bill for the development of the fully automated terminal and associated on-dock empty container park is expected to come in at A$550m (US$510m).

The introduction of a third stevedore will undoubtedly generate competitive efficiencies for Melbourne. This is good news for shippers and lines, but bad news for Melbourne incumbents Patrick and DP World who will now need to start planning in earnest for a new kid on the block by 2016.