This article is part of a daily series of MegaProjects articles. If you want to know more about PPP projects with a considerable size visit our MegaProjects section. You can receive them by email on a daily basis.

International Container Terminal Services, Inc. (ICTSI) and Anglo Ports, through their Australian subsidiary, Victoria International Container Terminal Limited (VICTL) have signed a syndicated loan facility worth AUD398 million (US$ 301 million) to develop the Port of Melbourne's new international container terminal and empty container park at Webb Dock PPP project. 

The total project investment is estimated at AUD550 million (US$416 million).

The financing package has been provided by seven leading global financial institutions, namely: Citibank N.A., KFW IPEX-Bank, Standard Chartered Bank as mandated lead arrangers and bookrunners, Bank of China Limited, DBS Bank Ltd., Investec Bank PLC as mandated lead arrangers, and Cathay United Bank as lead arranger. 

Finnvera, the Finland based export credit agency, also participated in the transaction by providing a guarantee for a portion of the facility. The facility provides significant financial flexibility with long-dated tenors of 7, 10, and 16 years.

As we reported in early May, ICTSI) and Anglo Ports signed the contract with the Port of Melbourne Corporation in May 2014 for the design, building, financing, operation and maintenance (DBFOM) of the project, having beat out competition from three other consortia:

• A consortium comprised of CMA CGM S.A. - ANL Container Line Pty Ltd and Macquarie Specialised Asset Management Limited;
• Hutchison Port Holdings (part of Hutchison Whampoa Limited); and
• Qube Holdings Limited.

The alliance of Linklaters and Allens acted as the legal advisor to the sponsors. 

Phase 1 of the terminal will have one berth of 330 meters fitted with three post-Panamax ship-to-shore cranes, 23.7 hectares of yard and off-dock area with fully automated operations from the gate to the quayside to deliver an estimated capacity of 350,000 TEUs.

The terminal will be able to handle vessels with a capacity of up to 8,000 TEUs.

Servicing the terminal will be a 10 hectare empty container park with a working capacity of around 200,000 TEUs.

A second phase, planned to be operational by 31 December 2017, will deliver an additional two post-Panamax ship-to-shore cranes on a second 330 meter berth.

When fully developed and as required by volume growth, the 35.4 hectare Terminal will have a total of six post-Panamax ship-to-shore cranes on 660 meters of berth, and will be able to handle up to 1.4 million TEUs annually, with the empty container park's capacity rising to 280,000 TEUs.

Anders Dommestrup, VICT Chief Executive Officer commented:

“VICT is extremely pleased to have signed this project finance facility with internationally renowned banks as this is a testament to the viability of VICT.  We remain committed to working with all our partners – the Port of Melbourne, local community, our contractors, and now our lenders – to deliver to Melbourne a world-class and industry leading container terminal”.  

ICTSI Corporate Finance Director Manuel V. Pascua, added:  

“The VICT deal has pushed the project finance envelope in Australia on a number of aspects, and this has made the process quite challenging.  Thanks to the collaborative effort put in together with our lending partners, we achieved a final debt structure that positions VICT for both short and long term financial strength.”