Port of Melbourne achieves financial closure
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The Government of Victoria has achieved financial close on the lease of the Port of Melbourne for more than AUD9.7 billion (US$7.4 billion).
As we reported in late September, the Lonsdale Consortium comprising the Future Fund, QIC, Global Infrastructure Partners (GIP) and OMERS was named by the Victorian Government as the successful acquirer of a 50-year lease of the Port of Melbourne, Australia's leading trade gateway.
The other bidder in the transaction process was the IFM Consortium comprising IFM Investors, Rotterdam-based pension fund manager APG Asset Management, and Macquarie Group's, Macquarie Infrastructure and Real Assets.
Lonsdale’s ongoing investment in the Port of Melbourne will consolidate the port’s position as the biggest container and cargo port in the country.
The Port of Melbourne accounts for up to 35 per cent of Australia's container trade. It is located in Melbourne, Victoria, and covers an area at the mouth of the Yarra River, downstream of Bolte Bridge, which is at the head of Port Phillip, as well as several piers on the bay itself.
Since 1 July 2003, the Port of Melbourne has been managed by the Port of Melbourne Corporation, a statutory corporation created by the State of Victoria.
The port hands almost 2.6 million containers annually with 1000 new motor vehicles per day on average. It counts with 36 commercial berths and 7 kilometers of quay line. Around 3000 ships visits annually the port, which total covers 100,000 hectares waters.
Treasurer Tim Pallas said:
“The lease of the Port of Melbourne is an outstanding achievement that underlines the continued high performance of the Victorian economy – the fastest growing in the country.”
“We promised to lease the port, get rid of Victoria’s most deadly and congested level crossings and create thousands of jobs, and that’s exactly what we are doing.”
Quotes attributable to Minister for Ports Luke Donnellan commented:
“The ongoing development of the Port of Melbourne will enhance its reputation as the leading port in Australia.”
“The lease of the Port of Melbourne will deliver enduring economic benefits to all Victorians.”
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