Global port operator, International Container Terminal Services Inc. (ICTSI) has outlined a proposal for the expansion of the Victoria International Container Terminal (VICT), its wholly owned subsidiary in the Port of Melbourne, Australia.
ICTSI could invest over AU$500 million ($343 million) in addition to the more than AU$700 million ($481 million) it has already invested in the VICT since its establishment in 2014.
Under this proposal, ICTSI would undertake a phased development of the Webb Dock North Container Terminal and integrate its operations with VICT.
The design would deliver higher operating efficiencies at a lower development with a reduced environmental impact compared to other proposals.
The development would increase VICT’s container capacity to 3.7 million TEU, allowing for four container berths with the ability to service vessels up to 14,000 TEU and up to 367 metres in length.
This proposal would increase efficiencies and pave the way for larger ships to berth at Melbourne, ICTSI claimed.
“Victoria’s growing economy presents the Port of Melbourne with the opportunity to consolidate its position as Australia’s number one container port,” said ICTSI’s Executive Vice President, Christian Gonzalez.
“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.”
ICTSI has engaged multiple global firms to assess the merits of its proposal in comparison to other expansion designs for the Port of Melbourne.
Engineering services company, Jacobs Solutions, 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 AU$240 million ($165 million) spread over a longer time 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 noted that ICTSI has made it clear that it 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 the Webb Dock facility.
“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,” said Gonzalez.