The Port of Melbourne (PoM) has crafted a development strategy to 2050. And next on the agenda is a so-called ‘tariff rebalancing’ to help pay for it.
The Port of Melbourne (PoM) is experiencing challenges from a number of issues, including variable vessel schedules, landside congestion and changes to vessel size and port calls. To meet these challenges, PoM has initiated a number of near-term measures and longer-term goals encapsulated in what is known as its 2050 Port Development Strategy (PDS)
Key elements of the near-term development encompass:
- The expansion of Victoria International Container Terminal (VICT) at Webb Dock East to provide two fully equipped berths and associated landside areas for the simultaneous handling of two vessels of up to 15,000TEU with an LOA of up to 367m.
- Swanson Dock East: Trials of five large container vessels of up to 325m LOA x 43m beam including Bosphorous Max class vessels were successfully concluded into this Dock in October and November 2019. This opened the door to trials with vessels of up to 337m LOA and 45.6m beam.
Complementing these initiatives, covering the three existing container terminals, PoM has undertaken a dredging programme designed to improve Under Keel Clearance in select areas of the Yarra River Channel and to promote the safe navigation of vessels into Swanson Dock. Access for the larger vessels into Swanson Dock remains, however, subject to compliance with a number of strict criteria spanning: certain berths must be vacant; wind speed below 15 knots, three tugs have to be employed and initially two pilots have to be onboard.
Looking forward to 2035 nine main development objectives are identified in the PDS:
- Upgrading Swanson Dock East and West Berths
- Delivering the Port Rail Transformation Project
- Expanding Webb Dock East container terminal
- Relocating the Tasmania terminals to Appleton/Victoria Docks
- Developing a new Webb Dock North container terminal
- Delivering the Webb Dock Freight Link and Rail Terminal(s)
- Integrating the Port with the former Melbourne Wholesale Market Site in Dynon
- Developing new liquid bulk capacity
- Developing Yarraville land at 221 Whitehall Street
By 2050 the expansion of the new Webb Dock North Container Terminal is envisaged.
ROAD MAP
The PDS is designed to provide a roadmap for how PoM will expand its infrastructure to support increasing trade volumes, with a strong focus on meeting the pressures bigger container vessels put on terminal facilities. This means working out how it can best use its assets in conjunction with the most efficient timescales for investments providing capacity when required. Getting more out of the existing land footprint of the port is an important associated goal.
Interwoven with these goals, however, are important parallel objectives such as alleviating truck traffic through the residential areas nearby the port and configuring infrastructure and port systems generally to meet the changing requirements of modern supply chains – an issue that has risen to the fore in conjunction with Covid-19 experience in Australia.
The planned new Webb Dock North Container Terminal is identified as a highly capital intensive exercise and one that will entail a significant reorganisation of port facilities. Notably, the PDS states: “The substantial expansion of Webb Dock container capacity requires Tasmanian trade to be relocated to the Appleton and Victoria Docks.”
Planning for this, PoM underlines, has already commenced and not least in recognition of the importance of providing a strong base for servicing Tasmanian trade. The timeline for the development of the Webb Dock Freight Link (rail) is put at 2030 with this expected to play a part in supporting the subsequent delivery of the Webb Dock North Container Terminal.
TARIFF REBALANCING
A so-called “tariff rebalancing exercise” is seen as necessary to help provide funding for the diverse infrastructure and other projects planned. This, says PoM, will involve consulting with stakeholders, reviewing the regulatory framework and using the feedback to inform its future tariff structure to achieve efficient cost recovery for services.
The current wharfage fee for full inward containers could be replaced with a ‘larger vessels’ wharfage tariff at a higher rate, for ships that exceed either 300m LOA or 40m beam, with a ‘standard’ wharfage tariff at the historical rate for smaller ships. The wharfage fee for full outward containers could be reduced to encourage export trade growth.
After assessing feedback, PoM intends formalising its rebalancing application to Victoria’s Essential Services Commission (ESC) by the end of this year, with the ESC making an interim decision in March 2021. If the rebalancing application is approved, it will come into force from July 1, 2021.
The PDS is intended to drive 10 years of development activity and projects, with planning work commencing in FY 2020/2021. The plan will be reviewed every five years to ensure it continues to meet the needs of port users.
