PORT OF MELBOURNE CAPACITY EXPANSION PROGRAM 

What Happens Next?

FTA/APSA Submission and Industry Timelines

Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) have lodged a submission to the Essential Services Commission (ESC) in response to its Draft Statement of Regulatory Approach (SoRA) relating to the Port of Melbourne's proposed Port Capacity Expansion Program (PCEP).

The submission is available alongside all publicly released submissions via the ESC consultation website.

View all public submissions:  HERE

What is the Port Capacity Expansion Program?

The Port Capacity Expansion Program (PCEP) is the Port of Melbourne's long-term strategy to increase container handling capacity as trade volumes grow over coming decades.

At the centre of the proposal is expansion of container terminal capacity at Webb Dock, including the future development of additional container terminal infrastructure and associated port assets. The Port of Melbourne has identified the project as critical to ensuring sufficient capacity is available to accommodate forecast growth in Victoria's container trade and to avoid future port congestion constraints.

Given the scale of the investment and its potential impact on future port charges, the project is subject to a new regulatory assessment process overseen by the Essential Services Commission.

What is this ESC consultation about?

Importantly, the current ESC consultation is not a decision on whether the Port Capacity Expansion Program should proceed.

Instead, the ESC is consulting on the regulatory framework it will use to assess major port infrastructure projects before costs can potentially be passed through to port users. The framework is intended to determine whether future expenditure is prudent and efficient and to establish the circumstances in which associated costs may be recovered through regulated port charges.

In its submission, FTA/APSA supports a transparent and rigorous assessment framework while highlighting the importance of:

• meaningful stakeholder consultation;
• transparency of project costs and cost recovery arrangements;
• accountability for expenditure;
• broader freight productivity outcomes; and
• ensuring the interests of cargo owners, importers, exporters and supply chain participants remain appropriately represented.

How does this fit into the broader PCEP approval process?

The current SoRA consultation represents the first stage of a multi-year regulatory process that will ultimately determine whether PCEP expenditure is approved and, if so, how costs may be recovered.

The anticipated timeline is outlined below:



Importantly, there will be further opportunities for member engagement throughout the process, including consultation associated with the Port of Melbourne's formal ex-ante submission and any future tariff discussions.

Why does this matter?

The PCEP is one of the most significant infrastructure initiatives currently proposed for Australia's largest container port.

While future capacity expansion may ultimately be necessary to support Victoria's growing freight task, the regulatory framework established by the ESC will influence how the project is assessed, how stakeholders are consulted and how any future costs may be recovered from port users.

FTA/APSA will continue to engage with the ESC, the Port of Melbourne and industry stakeholders throughout the process to ensure the perspectives of cargo owners, freight forwarders, customs brokers, transport operators and logistics providers remain appropriately represented.