Hong Kong’s Hutchison Port Holdings and French container line CMA CGM are among rival bidders to operate a third container terminal at the Australian port of Melbourne.
The minimum 1m teu capacity concession, the centrepiece of the Victoria state government’s A$1.6bn ($1.6bn) Melbourne port capacity project, attracted expressions of interest from Australian and international bidders after the tender process launched in October 2012.
Hong Kong’s Hutchison Port Holdings and French container line CMA CGM are among rival bidders to operate a third container terminal at the Australian port of Melbourne.
The minimum 1m teu capacity concession, the centrepiece of the Victoria state government’s A$1.6bn ($1.6bn) Melbourne port capacity project, attracted expressions of interest from Australian and international bidders after the tender process launched in October 2012.
Melbourne, on Australia’s southern coast, handled 2.6m teu in the last financial year, up from 2.4m teu in the previous like period. The volumes are handled by the two container terminal operators at Swanson Dock, DP World and Patrick Stevedores.
Located at Melbourne’s Webb Dock East, the new third facility is offered as a package that comprises 30 ha of waterfront terminal, a utility off-dock area and an adjoining empty container facility.
The bidder shortlist includes a consortium comprised of CMA CGM-ANL Container Line and Macquarie Specialised Asset Management.
Rival bidders are Australian International Container Terminals, a consortium of International Container Terminal Services and Anglo Ports.
Hutchison Port Holdings is the third bidder, with Australia-based Qube Holdings being the fourth.
Port of Melbourne Corp chief executive Stephen Bradford invited the shortlisted bidders to move to the request for proposals phase.
Mr Bradford said: “This is the jewel in the crown of Australian ports and the responses received during the expressions of interest phase confirm the strategic significance of operating a terminal at Australia’s premier port.”
“In evaluating the bids we are seeking innovation to deliver higher levels of operational efficiency alongside the requirements to operate a growing port in the middle of one of the nation’s largest cities.”
He added: “Importantly, we are also seeking commercial returns that are in line with the significance of this rare opportunity.”
The successful bidder will be announced in “early 2014”, and the first container vessel is expected to call the new terminal in late 2016.
The project is funded by the Port of Melbourne Corp, which provides the “backbone” infrastructure while the private sector operators will fund the terminal superstructure.
In mid-April 2013, Australia’s New South Wales state government awarded a A$5bn concession for 99-year leases at container hub Port Botany, near Sydney, and bulk specialist Port Kembla.
A November 2010 deal saw investors pay A$2.3bn for a 99-year lease to operate Australia’s Brisbane port on the Pacific east coast.
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