International Container Terminal Services Inc. on Friday proposed to invest $343 million for the expansion of Victoria International Container Terminal to dramatically increase efficiencies and pave the way for larger ships to berth at Australia’s pre-eminent port.
Under the proposal, ICTSI would undertake a phased development of the Webb Dock North Container Terminal and integrate its operations with VICT, its 100-percent owned subsidiary in the Port of Melbourne. The design would deliver higher operating efficiencies at a lower development cost and with a significantly reduced environmental impact compared to competing proposals.
The port operator already invested $481 million in Victoria since the establishment of VICT in 2014, making it one of the largest foreign infrastructure investors in the Australian state.
The development would increase VICT’s container capacity to 3.7 million twenty-foot equivalent units, allowing for four container berths with the ability to service vessels up to 14,000 TEUs and up to 367 meters in length.
ICTSI executive vice president Christian Gonzalez said the company is the ideal long-term strategic partner for the Port of Melbourne to ensure it could meet the growing demand of Australia’s busiest container port.
“Victoria’s growing economy presents the Port of Melbourne with the opportunity to consolidate its position as Australia’s number one container port,” Gonzalez said.
“ICTSI is keen to solidify its partnership with the Port of Melbourne to deliver the lowest cost, most efficient and environmentally-sustainable solution. Our vision for this operation is in lockstep with that of the Port of Melbourne’s own vision as it examines strategies to expand capacity and facilitate the growth of Victorian economy,” he said.
ICTSI engaged multiple global firms to assess the merits of its proposal in comparison to current expansion designs for the Port of Melbourne.
Jacobs Engineering undertook a detailed technical assessment, including estimates of construction costs, while Boston Consulting Group focused on market and economic assessments.
The external reports conclude that ICTSI’s proposal could deliver cost savings of more than $165 million and spread the timing of spend over a longer period while introducing significant capacity into the market sooner.
Gonzalez said preliminary discussions had been held with the Port of Melbourne and its owners as well as the Victorian government and other key industry stakeholders.
He said ICTSI is ready and confident to test its proposal in any competitive process that the Port of Melbourne requires under its plans for the future of Webb Dock.
“We believe we can partner with the Port of Melbourne to deliver the superior proposal for Webb Dock and in turn, lock in further economic prosperity for Victoria,” Gonzalez said.
“We look forward to sharing further independent analysis of our proposal alongside all details with the Port of Melbourne and other key stakeholders in due course,” he said.
