Logistics News

Westgate Ports and PoMC in legal stoush

The definition of a ship type is at the centre of a legal stoush between Westgate Ports and PoMC

June 22, 2011

The definition of a ship type is at the centre of a legal stoush between Westgate Ports and the Port of Melbourne Corporation (PoMC) that began yesterday.

Transport and logistics firm Westgate Ports has an intermodal operation in the port and runs trucks. It also has long-term plans to create inland ports at Altona and Lyndhurst linked by rail.

It already shifts pulp and paper by rail from Maryvale in Gippsland to the port for Australian Paper.

Westgate Ports has lobbied state governments for its inland ports strategy as a way of easing congestion around the port but this will rely on shifting containers to be effective.

A loss in court may represent a setback for these plans.

A commercial court listing says the company and the port had entered a deed setting out the Westgate’s rights to develop, lease and operate a “distripark and rail terminal” at Victoria Dock and a lease had been signed.

“The lease described the terms upon which the defendant [PoMC] would grant rights to the plaintiff to moor ‘general cargo vessels’ at the wharf adjacent to the site subject to the lease,” the case description says.

“The dispute concerns the types of vessels contemplated by the term ‘general cargo vessels’ as it appears in the lease, and thus the types of vessels that may be moored by the plaintiff.

“The plaintiff contends for a definition that includes vessels capable of carrying ‘containerised’ or ‘break bulk’ cargo.

“By counterclaim, the defendant seeks, inter alia, a declaration that the term ‘general cargo vessel’ does not include ‘a container ship or a liquid or dry bulk vessel’.”

A company spokeswoman says it will comment after the end of the case, expected at some stage today.

A PoMC spokesman says it would not comment while the case was underway.

Westgate Ports runs a fleet of Super B-Double trailers, Euro 5 Mercedes Benz prime movers, SB33 Steelbro side loaders, amongst other specialised equipment.

The company has 109 tonne gross vehicle mass permits for its port precinct vehicles.

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