Australia’s peak infrastructure body has welcomed the government's plan to sell the Port of Melbourne on a lease of at least three decades, predicting a raft of cashed-up global and local buyers will show strong interest.
The move to lease the country's busiest port – possibly in conjunction with the planned Port of Hastings on the Mornington Peninsula – is expected to flush the government's forward estimates with cash as it moves towards a state election with a string of major infrastructure projects to fund, reported The Australian.
Treasurer Michael O'Brien confirmed that a scoping study for the lease would be finalised before the state budget in May, which will pave the way for the November election battle.
The study will include trade growth projections and recommendations on the ownership options of Melbourne port and the new port at Hastings, including the timing, economic and commercial value of each option.
It has previously been reported that the sale of the Port of Melbourne could be worth up to US$5.96 billion while the government could receive as much as $7.22 billion for the sale of both ports.
Infrastructure Partnerships Australia chief executive Brendan Lyon said the $4.5 nillion sale of Port Botany and Port Kembla in NSW had spurred the creation of consortia with ready access to capital who were still keen for other Australian assets.
``The port of Melbourne is the jewel in the crown of Australia's seaports,'' he said. ``It has been very well run; it's very well serviced in terms of a nice channel.
``I'm not suggesting it's going to hit the market this year, but the government would be foolish not to factor in the future proceeds into constructing the forward years of the budget.''
Premier Denis Napthine named the second stage of the East West Link and the Metro Rail Capacity Project, which would include a rail link to Melbourne airport, as some of the infrastructure plans that could receive funding from the ports deal.
He said despite the apparent urgency of the study, the plan to issue a lease until 2050 or 2060 would not be a rushed ``fire sale''. ``We want a situation where Victoria remains the freight and logistic capital of Australia. If we're not competitive with Sydney and Brisbane we will lose shipping to Sydney and Brisbane.''
Labour has committed to the sale of the Port of Melbourne to pay for the removal of Melbourne's 50 worst level crossings if it wins the election, but prefers the option of a second container port in the Bay West area, between Werribee and Geelong, instead of Hastings.
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