Port of Melbourne Industry Update September 2024

Message from the CEO

As we approach the final quarter of 2024, I am pleased to share our progress in building a robust supply chain – one that caters to Victoria's growing needs.

A key development of recent months is the finalisation of a long-term lease for the former Melbourne Markets site on Footscray Road, offering access to additional land for urban freight and port uses.

The site's strategic location and proximity to existing port functions provide exciting expansion opportunities. First identified in the Port Development Strategy in 2020, this lease has been several years in the making, and presents a significant step towards enhancing efficiencies for all port users.

As always, I am grateful for your ongoing support and collaboration in maintaining Victoria's position as the freight capital of the nation. Our collective effort is reflected in Ports Australia's inaugural State of Trade Report, launched earlier this month, which highlights Victorian ports' significant contributions to Australia's economy – and I would like to congratulate all of you on this positive outcome.

Best regards
Saul Cannon

Trade & Supply Chain Update

In the first two months of FY25, overall container exports have decreased compared to the previous year. However, full container exports have experienced robust growth, driven by favourable growing conditions for key commodities such as wheat, barley, cotton, hay, and meats.

This growth has been supported by the prioritisation of freight capacity, particularly in the Oceania trade route, where available capacity has been tightening with peak season in full swing. The reduction in freight capacity has significantly limited the export of empty containers, contributing to the overall decline in container trade year-on-year.

Non-container trade during the same period experienced negative growth across all key categories, including break bulk, dry bulk, liquid bulk, and motor vehicles. Within dry bulk, grain exports recorded an increase. Minor positive shifts were also noted in transport equipment, liquid bulk (other), and break-bulk (other).

Click here to read more.

Latest Developments

Long-Term Lease of Former Melbourne Markets Site

Port of Melbourne has secured a long-term lease with the Victorian Government to access additional land that will bolster Victoria's supply chain efficiency and resilience.

Port of Melbourne will lease approximately 29 hectares of the former Melbourne Markets site to 2066 in line with its existing 50-year port privatisation lease.

This represents the Port's largest ever expansion since the long-term lease was granted in 2016. Based on current planning, Port of Melbourne expects to invest more than $200 million into the development of the site.

Read more.

Stakeholder Engagement on Future Port Development

Stakeholder engagement is an important part of planning for the future development of the Port. Our annual survey, individual engagements, and our day-to-day discussions continue to highlight a strong interest in port land use, infrastructure planning, transport connections and facilitating the energy transition.

Port of Melbourne currently has a significant pipeline of engagement underway and ahead into 2025.

This includes considering feedback provided by more than 20 stakeholders on the draft Cost Benefit Analysis (CBA) for the proposed Port Capacity Enhancement Program, undertaken by Deloitte. Having reviewed formal submissions, there are some aspects of the draft CBA that Deloitte will soon undertake further work on.

Importantly, the draft CBA process provided valuable additional information for inclusion in planning for the draft 2055 Port Development Strategy (PDS), particularly on infrastructure development and port land use.

Port of Melbourne also last week invited stakeholders to provide feedback on future trade demand forecasts and participate in 1:1 discussions on issues for our draft 2055 PDS. Over the coming months, we will conduct discussions with tenants, port users, peak bodies, local government, and community. Our draft 2055 PDS will be subject to stakeholder consultation in March-April 2025, ahead of being finalised in December 2025.

Should you have any questions about how you can input into our 2055 PDS engagement program, please email pds@portofmelbourne.com.

Port Infrastructure Update

Swanson Dock West Remediation Project Achieves Milestone

The Swanson Dock West (SDW) Berth 1 Remediation Project has reached 75% completion. All new piles have been installed, and the concrete deck pours in the final stages. The installation of the replacement container crane rails has now commenced.

As the structures are more than 50 years old, Port of Melbourne is also tackling additional repairs required on some of the marine piles. Working with our contractor, McConnell Dowell, we have been able to incorporate these works within the original program, maintaining a planned project completion of mid-2025. Early planning works are also underway with DP World in regard to the future stages of the project required to remediate SDW Berths 2 and 3.

Swanson Dock East 150T Bollards Stage 2 Project Complete

Four 50T bollards at Swanson Dock East (SDE) Berths 1 and 2 have been upgraded to 150T bollards in the SDE 150T Bollards Stage 2 Project.

The project forms part of the Big Ship Strategy developed in 2018, supporting the Port's investment to enable vessels larger than the historical design vessel of 300 metres length over all (LOA) to access the Port, including Swanson Dock.

Yarra River Services Protection Project Update

As part of the Channel Deepening Project in 2008-2009, the Yarra River Services Protection Structures were installed as a safeguard over three trunk services in the Yarra River downstream of the West Gate Bridge.

Port of Melbourne is undertaking remediation work on the structures and an exclusion zone (for vessels 50 meters LOA and over) gazette has been published. Works commenced on Friday, 20 September.

More information can be found here.

Rock Revetment Remediation Works to Commence

Port of Melbourne will be carrying out works on sections of the Douglas Parade Rock Revetment throughout October and November. A 50-meter section of the 500-meter revetment will be remediated to protect against erosion. Similar works will take place south of Short Road, on the opposite side of the Yarra River, which will continue into 2025.

From mid-October, Port of Melbourne's contractor, Dirt Rock Civil, will be on site from 7:30am to 5:00pm Monday to Friday and 7:30am to 4:00pm on Saturdays. Weather permitting, the works are expected to take approximately eight weeks.

More information can be found here.

Government and Industry Forums

Ports Australia Releases Inaugural State of Trade Report

Port of Melbourne is delighted to share Ports Australia's inaugural State of Trade report, a key indicator of Australia's economic health and regional reputation. Ports are the backbone of Australia's economy, bringing in and shipping out 99% of Australia's international trade, keeping our supply chains moving, and our critical industries firing.

As Australia's largest general cargo and container port, Port of Melbourne is proud to be a significant contributor to the economy of Victoria, and Australia as a whole.

Read the full report here.

25th Australian Grains Industry Conference

On 31 July and 1 August, more than 680 delegates from the grains industry across 22 countries gathered at the 2024 AGIC Australian Grains Industry Conference to network, connect, and collaborate - a fruitful event with a truly excellent outcome.

Port of Melbourne was the proud sponsor of the Welcome Reception on Day 1, and was represented by our Business Development team, including Head of Business Development Leatrice Treharne, who presented on the insightful discussion panel titled "Container Supply Chain – Costs and Competition – Finding the Silver Lining". We look forward to seeing our industry partners at the 2025 Conference!

Community Engagement

Port of Melbourne Contributes 2 Million Meals to Foodbank Victoria

Port of Melbourne fosters a shared city-port vision and our commitment to the community goes well beyond the Port gate. We actively partner with not-for-profit organisations in the communities in which we operate. In FY24, Port of Melbourne contributed $219,000 to our community partners, including Foodbank Victoria.

Our partnership with Foodbank Victoria began in 2018 and, as of late August, we have provided more than 2 million meals to Victorians in need.

Gateway LLEN Reimagining Work Experience at the Port

On 6 September, 16 students from six schools visited Port of Melbourne as part of Gateway LLEN's "Reimagining Work Experience 2024". 

The Year 10 students heard from industry specialists and learned about career pathways in and around the Port.

The highlight of the day was a landside tour to Swanson Dock West, facilitated by our contractor, McConnell Dowell. There, students had the opportunity to experience the worksite and witness remediation works up close.

We welcome involvement from the broader industry, including guest speakers, promotional collateral, and more. To find out how your organisation can get involved with our Port Education Program, email education@portofmelbourne.com.

Follow us on LinkedIn for more engagement and activity updates.