Container port operator Victoria International Container Terminal (VICT) has announced it has signed a 26-year extension of its contract with the Port of Melbourne.
The new deal means the wholly owned subsidiary of International Container Terminal Services Inc. (ICTSI) will continue to operate and manage the Webb Dock East terminal.
VICT will run the terminal until at least 2066, moving the expiry date from 2040 and resulting in a remaining contract life of 40 years at Australia’s largest general cargo and container port.
ICTSI has made long-term investments in VICT since the original lease was agreed in 2014, and is currently implementing a new investment program scheduled for completion in late 2027. This includes a new neo Panamax ship-to-shore quay crane, four hybrid automated straddle carriers and the extension of two container stacking blocks.
This development comes as the Port of Melbourne has grown in recent years, including record trade in the past financial year when it handled approximately $154 billion in trade. This is expected to continue with container trade forecasted to double over the next 30 years.
VICT CEO Bruno Porchietto says the contract’s expansion reinforces the company’s long-standing commitment to the Port of Melbourne and Victoria’s economy.
“The extension allows us to continue investing in capacity, systems and people to support the state’s trade requirements over the long term, while providing shipping lines and cargo owners with greater operating continuity and certainty,” he says.
Port of Melbourne CEO Saul Cannon also welcomed the agreement.
“We see VICT’s decision to extend its lease at the Port of Melbourne as a sign of great confidence in our future,” he says.
“We welcome the investment VICT is making in the terminal and its shared commitment to keeping our port as the freight capital of Australia.”