Advice on securing Victoria's ports capacity

When, where and how to invest in ports

In this report, we provide advice to the Victorian Government on when and where to invest in container port capacity.

We examine the importance of commercial ports to the Victorian economy. We also look at the social, environmental and economic benefits and impacts of developing ports.

This report provides clarity on when a second container port may be needed in Victoria and whether it is best located at the existing Port of Hastings or a new Bay West location. 

Key findings

• Before investing in a second major container port, Victoria should first optimise the capacity of its current commercial ports. This should take into consideration social and environmental factors.
• Some trades could be relocated from Port of Melbourne to Victoria's other commercial ports at Hastings, Portland and Geelong. We won't need another major container port until Port of Melbourne reaches about 8 million TEU. This will happen around 2055.
• Detailed development planning for a second major port should begin around 2040, about 15 years before the port begins operating. Land use planning actions need to be taken as soon as possible.
• Bay West is the preferred location for a second major container port. Bay West has strong transport, land use, environmental and amenity advantages compared to Hastings.

Recommendations

Infrastructure Victoria made 19 detailed recommendations to the Victorian Government across 6 themes:

• monitor and publicly report on key port related indicators.
• optimise the capacity of existing ports.
• understand the variables that may alter planning and timelines.
• preserve long-term port options.
• baseline and monitor environmental conditions.
• optimise the governance of Victorian ports.