Melbourne capacity ‘crisis’ fast approaching

The Port of Melbourne’s ability to handle future container growth could be compromised as early as 2015, according to the Australian Competition and Consumer Commission.

Victorian port is close to capacity ceiling. Credit: The Port of Melbourne Authority

ACCC chairman Rod Sims said that if container numbers continue to increase at current rates, there is a risk that capacity problems, similar to those observed in Sydney, could emerge in Melbourne.

The ACCC’s findings echo sentiments expressed by shipping line ANL which says there is a “crisis in port capacity” in Victoria.

ANL managing director John Lines said that while planning for the longer-term capacity in Melbourne was welcomed, there was a crisis in port capacity right now.

“Unlike the ports of Sydney and Brisbane, which have new facilities under construction, Melbourne has yet to even announce any new short-term capacity increase or development. Let’s be very clear. In our view Swanson Dock is full,” he said.

The ACCC has encouraged the invitation of a third stevedore to provide increased competition.

“Opportunities for new entry into Australian stevedoring are rare – this makes them all the more important when they do arise. We would welcome the Victorian government taking advantage of the need for new investment by introducing a third competitor into the port of Melbourne,” Mr Simes said.

The port of Hastings is seen as a long-term alternative to Melbourne.

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