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

Submissions on the Draft Cost Benefit Analysis for the Port Capacity Enhancement have now closed. The submission period, which ran from Friday 24 May through to 5.00pm Monday 29 July 2024, was part of Stage Two Engagement on PCEP. The Draft CBA is available to download here.

Feedback was provided by more than 20 stakeholders. Having reviewed the formal submissions, there are some aspects of the Draft CBA that Deloitte will soon undertake further work on.

Port of Melbourne, in collaboration with Deloitte, hosted three focused online briefing sessions as follows:

Cargo owners, importers & exporters – Friday 7 June, 11.00am to 12.00noon
Shipping lines – Tuesday 11 June, 9.30am to 10.30am
Tenants & stevedores – Tuesday 11 June, 2.00pm to 3.00pm

Engagement materials can be viewed by clicking the below:

Following these sessions, PoM will be offering one-on-one facilitated discussions.

Formal submissions

If your organisation has not been provided a unique link or you wish to confirm the recipient, please email surveys@insync.com.au to participate.

What to expect:

Briefing sessions	One-on-one discussion	Submissions
Scene setting and presentation on Deloitte’s findings. Do you need any more information to understand the PCEP Draft Cost Benefit Analysis, to contribute and complete a submission?	An opportunity to ask questions in a facilitated one-on-one session with PoM, helping to shape submissions and validate cost and benefit inputs.	Formal written submissions can be completed via a unique weblink prior to 5.00pm Monday 29 July 2024.
	*To inform discussions and submissions please consider:*
	What are your reactions and thoughts on the PCEP Draft Cost Benefit Analysis? Is there anything that would improve the accuracy of the final PCEP Cost Benefit Analysis? (excluding inputs from forecast reports engaged on between September 2022 and September 2023) In the context of benefits and impacts to the Victorian economy, is there anything that is not in the PCEP Draft Cost Benefit Analysis, that should be in the (final) cost benefit analysis? Do you have any anticipated or developed business decisions that may directly help or affect Webb Dock North being implemented? How would you like to be engaged with about PCEP in the future?

At the conclusion of Stage Two engagement, PoM will provide formal responses to submissions. We are committed to keeping our stakeholders up to date and will advise of updates to the webpage as we progress.

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:

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.

We are currently planning the engagement approach to gain insights on a PCEP draft Cost Benefit Analysis with consideration for feedback received during Stage One engagement. We will notify stakeholders when information is available on next steps and timing.