FTA/APSA Participation in Port of Melbourne 2055 Port Development Strategy Workshop

Last week, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) actively participated in the Port of Melbourne 2055 Port Development Strategy (PDS) Industry Peak Bodies and Associations Workshop. This critical engagement provided an opportunity to shape the future development of the Port, ensuring it continues to meet the needs of a growing Victoria and supports international trade efficiently.

The Port of Melbourne's current 30-year 2050 Port Development Strategy (2050 PDS) was first published in 2020, identifying ten key projects to enhance capacity and accommodate growing demand. Under the Port Management Act 1995 (Vic), all Victorian ports are required to review and update their PDS every five years. The 2055 PDS is now under development and is scheduled for completion by December 2025.

Key Contributions from FTA/APSA

During the workshop, FTA/APSA raised and discussed several vital topics:

1. Webb Dock's Role and Future Capacity
   Webb Dock currently handles approximately 38% of Melbourne's container stevedoring market, making it the largest container terminal in the Port. With capacity constraints expected by 2037, the planned expansion of Webb Dock North raises significant questions about its future increased share of container volumes and how these will be moved efficiently. Specifically:
• How will the road network be developed to manage increased traffic?
• Will a dedicated rail connection to Webb Dock be included, addressing growing concerns about landside congestion and declining rail freight usage?
2. Port Rail Shuttle Network (PRSN)
   In response to members' concerns about increases in port-related charges, FTA/APSA highlighted issues surrounding the PRSN. While physical infrastructure is progressing, further work is required to ensure operational readiness and effective integration with broader logistics networks. Importers are already funding this project through a levy on each container (initially $9.75/TEU closer to $12.00/TEU after indexation), with no sunset clause. Questions were raised about the total revenue collected and how these funds are being utilised.
3. Impact of Larger Vessels
   The increasing use of larger vessels poses challenges for landside logistics. These ships often create periods of reduced activity followed by significant surges in volume, straining infrastructure, resources, and workforce capacity. Planning is essential to mitigate these peaks and ensure a smooth flow of cargo through the supply chain

Call for Strategic Planning

FTA/APSA emphasised the importance of proactive planning to address these challenges and ensure that the Port's development strategy aligns with the needs of importers, exporters, and logistics providers. A collaborative approach between industry stakeholders and the Port of Melbourne will be essential to achieve these outcomes.