Global port operator International Container Terminal Services Inc. (ICTSI) has outlined a significant proposal for the expansion of the Victoria International Container Terminal (VICT), its 100% owned subsidiary in the Port of Melbourne, Australia.
ICTSI said the proposal would dramatically increase efficiencies and pave the way for larger ships to berth at Australia’s pre-eminent port.
"ICTSI could invest over AUD500 million (US$343 million) in addition to the more than AUD700 million (US$481 million) it has already invested in Victoria, Australia since the establishment of VICT in 2014; making ICTSI one of the largest foreign infrastructure investors in the state of Victoria," the port operator said in a statement.
It added that under the proposal, ICTSI would undertake a phased development of the Webb Dock North Container Terminal and integrate its operations with VICT.
The design would deliver higher operating efficiencies at a lower development cost and, importantly, with a significantly reduced environmental impact compared to competing proposals.
Increased capacity at Port of Melbourne
ICTSI noted that the development would increase VICT's container capacity to 3.7 million twenty-foot equivalent units (TEU), allowing for four container berths with the ability to service vessels up to 14,000 TEUs and up to 367 meters in length.
Christian Gonzalez, ICTSI's executive vice president, said the company is the ideal long-term strategic partner for the Port of Melbourne to ensure it can meet the growing demands of Australia's busiest container port.
"Victoria's growing economy presents the Port of Melbourne with the opportunity to consolidate its position as Australia’s number one container port," Gonzalez said, adding that ICTSI is "keen to solidify" its partnership with the Port of Melbourne to deliver the lowest cost, most efficient and environmentally sustainable solution.
"Our vision for this operation is in lockstep with that of the Port of Melbourne's own vision as it examines strategies to expand capacity and facilitate the growth of Victorian economy," the ICTSI executive further said.
ICTSI noted that it has engaged multiple global firms to assess the merits of its proposal in comparison to current expansion designs for the Port of Melbourne.
Jacobs Engineering undertook a detailed technical assessment, including estimates of construction costs, while Boston Consulting Group focused on market and economic assessments.
The external reports conclude that ICTSI's proposal could deliver cost savings of more than AUD240 million (US$165 million) and spread the timing of spend over a longer time period while introducing significant capacity into the market sooner.
Gonzalez said the preliminary discussions had been held with the Port of Melbourne and its owners as well as the Victorian Government and other key industry stakeholders.
He says ICTSI has made it clear that it is ready and confident to test its proposal in any competitive process that the Port of Melbourne requires under its plans for the future of Webb Dock.
"We believe we can partner with the Port of Melbourne to deliver the superior proposal for Webb Dock and, in turn, lock in further economic prosperity for Victoria," he said. "We look forward to sharing further independent analysis of our proposal alongside all details with the Port of Melbourne and other key stakeholders in due course."
