Victoria's Andrews Labor Government achieved financial close on Monday, October 31 on the lease of the Port of Melbourne for more than $9.7 billion.
Having achieved this stage of the process, the Victorian Government is now able to begin delivering on its promises to stimulate the economy with jobs and development projects, including the removal of Victoria's top 50 deadly and congested level crossings, with another ten per cent of the lease proceeds being invested in various regional and rural infrastructure projects.
[Related article:
Port Of Melbourne Leased In Jaw-Dropping Deal Worth Billions]“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," Treasurer Tim Pallas said.
The Victorian Government is still expected to receive about nine per cent, or $877.5 million, under the federal government’s asset recycling scheme. However, the Government is waiting for the Commonwealth to honour the additional 15 per cent that Victoria is entitled to under the initiative, which would bring their total asset allocation to around $1.45 billion.
[Related article:
Infrastructure Funding Allocation Leaves Victoria Seeing Red]The Lonsdale Consortium, comprising of the Future Fund, Queensland Investment Corporation, infrastructure fund manager GIP and Canadian pension fund OMERS, is now responsible for the port’s ongoing commercial operations for a term of 50 years.
The State will retain responsibility for the Harbour Master, Station Pier, relevant safety and environmental regulation, waterside emergency management and marine pollution response.
Minister for Ports Luke Donnellan said the lease of the Port of Melbourne will deliver enduring economic benefits to all VictoriansLonsdale's ongoing investment in the Port of Melbourne will consolidate the port’s position as the biggest container and cargo port in the country.
During the lease term, Lonsdale will maintain access to public walkways and bike paths for community use. Commercial and recreational vessel access will not be affected by the agreement, and the port will be returned to public hands at the end of the lease.
