By JOHN VAN KLAVEREN
LABOR’S plan to lease the port of Melbourne could scuttle its proposal for a second container port between Geelong an Werribee.
A clause in the 50-year lease would make State Government liable for compensation if it built a second port, such as the Bay West proposal, before Melbourne reached capacity.
Premier Daniel Andrews announced this week the port would be leased to private interests to raise billions of dollars for transport projects.
The Government hopes to garner $6 billion, most of which would be spent on removing railway level crossings.
Labor’s Bay West plan proposed a second container port with a three-kilometre pier near Pt Wilson. Labor pushed Bay West as an alternative to the coalition’s preference for a second port at Hastings.
Committee for Geelong chief Rebecca Casson last year expressed concern that privatising Port of Melbourne could impact adversely on Geelong’s port and channels.
“Private control of channels may also jeopardise the development of a new port – either Bay West or Hastings – as a private operator may seek to suppress competition,” she told the Independent.
Australian Industry Group Victorian director Tim Piper said industry was “cautious” that the lease conditions would place long-term restrictions on the emergence of potential competition from new ports.
Victorian opposition spokesman Michael O’Brien said the proposal “effectively kills off” the prospect of a second container terminal in or near Melbourne for 50 years.
But Treasurer Tim Pallas said he doubted a second port would be built before Melbourne reached capacity.
