The Victorian Government, Australia, has finally voted in favor to tender the port of Melbourne after the bill for the 50-year lease contract for the port was approved in Parliament with the 85% of the votes.

It is expected that the tender process will begin soon with the launching of a request for expression of interest (RFEOI). The port is expected to be privatized by the end of 2016.

The Government aims to raise approximately A$6 billion (US$4.48 billion) from the sale of the port's lease. It plans to use the funds to remove 50 railway level crossings.

The Port of Melbourne is Australia's largest container port, accounting 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.

In mid August 2014, the State of Victoria appointed financial advisers Morgan Stanley and Flagstaff Partners to manage the transaction. Minter Ellison was also appointed as legal adviser for the transaction. 

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.

Tim Pallas, the Treasurer of the Government of Victoria, said:

"The Government had broken the impasse and struck the right balance, with competitive neutrality principles enshrined in the bill. This is a great outcome for Victorians and a great result for its regions with key transport initiatives across the state to provide a boost to the economy, which is good news for jobs."