Port Capacity Enhancement Program
Project overview
As part of the Port of Melbourne’s stewardship obligations, it is required to ensure that port capacity can meet the future demands of Victoria’s growing economy. The Port of Melbourne is engaging about the next stage of that port capacity, called the Port Capacity Enhancement Program (PCEP).
This program was outlined in the Port of Melbourne’s 2050 Port Development Strategy (PDS) and involves developing a Webb Dock North container terminal and securing the long-term future for the Tasmanian trades.
Once delivered PCEP will ensure the Port of Melbourne (PoM) continues to play a significant role in driving forward the Victorian economy.
Engagement
PoM is committed to stakeholder engagement that is inclusive, timely, genuine and transparent. Our approach is guided by our commitment to comply with our regulatory obligations, and our intent to listen to and be responsive to our stakeholders. We will always seek opportunities to strengthen our engagement over time in line with the Pricing Order Engagement Protocols.
We recognise that engaging stakeholders in our planning process for PCEP leads to informed decision-making that balances the needs and interests of relevant parties.
Stage Two – Cost Benefit Analysis
From 24 May to 29 July 2024, PoM undertook Stage Two engagement on the PCEP Draft Cost Benefit Analysis. Feedback was provided by more than 20 stakeholders and an overview of what we heard is available here.
PoM has reviewed submissions, closed the loop and identified:
- There are some aspects of the draft CBA that Deloitte will undertake further work on. This includes identifying details relating to other states, environmental elements, additional sensitivity analysis and reviewing some key assumptions.
- In most cases PoM has been focused on using additional insights provided by stakeholders to inform the draft 2055 PDS, which is a mandated process in its long term planning.
- PoM continues planning for development to meet demand and had a number of related workstreams underway including ongoing bilateral discussions with stevedores in response to feedback received through the draft CBA and other processes to understand potential capacity and productivity enhancement options.
All engagement materials can be viewed below:
- PCEP Draft Cost Benefit Analysis
- What we heard
- Online briefing sessions – Presentation
- Online briefing session- Recording
- PCEP Draft Cost Benefit Analysis – Snapshot
Engagement included:
Stage One – Technical reports
In September 2022 PoM began a process to collect feedback on three technical reports as the key drivers of the project. Since this time, a robust engagement program has captured feedback from stakeholders on three technical reports, assumptions and scenarios, which have been used to inform technical analysis, as well as providing insights on a number of other topics.
Final versions of the reports including an engagement summary report can be viewed by clicking the below:
- Deloitte – Port of Melbourne Trade Forecasts Summary Report & Sensitivity Analysis (September 2023)
- GHD – Port of Melbourne Future Containership Fleet Analysis, 2023-2050 (September 2023)
- Black Quay – Port of Melbourne Container Capacity Review Final Report (September 2023)
- PCEP Stage One Engagement Summary Report (September 2023).
Delivery timing
Port of Melbourne is targeting new capacity at Webb Dock North in 2036, to avoid capacity constraints that forecasting suggests may first arise in 2037.
Targeting 2036 for additional capacity has been informed by stakeholder engagement, analysis of tenant impacts and assessment of delivery schedules.
This proposed timing balances meeting demand for the benefit of Victoria and impacts on the broader supply chain.
There is significantly more work to be done across all elements of new capacity planning, and we look forward to further refining our program and engaging with our stakeholders.