Hutchison, Qube make port shortlist
In a further step towards breaking the duopoly on Australia's waterfront, the Port of Melbourne has released the identities of the four groups that have made the shortlist, which also includes a Macquarie-backed consortium and another group that comprises Anglo Ports and an Asian ports operator.
The bidders are competing for the right to operate the third terminal at Webb Dock East, which will be mandated to shift at least 1 million containers each year.
The four shortlisted bidders will have to lodge their proposals in September and the winner is expected to be announced early next year.
Hong Kong billionaire Li Ka-shing's Hutchison Ports is expected to be the leading contender.
The deep-pocketed stevedore has already won the right to be the third operator in Sydney and Brisbane, in a big challenge to Asciano's Patrick stevedoring division and DP World.
Hutchison recently opened its terminal at Fisherman Islands in Brisbane and wants to do likewise at Port Botany by the end of this year. Commonwealth Bank analyst Matt Crowe said Hutchison was the "hot favourite" to become the third operator in Melbourne.
"You would think that having all three slots [at the major ports on the east coast] would be a more compelling offer than someone having a sole terminal," he said.
The Port of Melbourne, the country's largest, is touting the third container terminal as the "jewel in the crown of Australian ports". Chief executive Stephen Bradford said the expressions of interest confirmed the "strategic significance of operating at terminals" at the port.
The third terminal is the major part of a $1.6 billion makeover of the port. It includes about 30 hectares of waterfront and an empty container facility. The first container ship is expected to dock at the third terminal in late 2016.
Frequently Asked Questions about this Article…
The project is a $1.2 billion container terminal at Webb Dock East in Melbourne. It's the centrepiece of a $1.6 billion Port of Melbourne makeover, includes about 30 hectares of waterfront and an empty container facility, and will be mandated to shift at least 1 million containers a year. The first container ship for the new terminal is expected to dock in late 2016.
Four groups were shortlisted: the Chris Corrigan-backed Qube Logistics, Hong Kong billionaire Li Ka-shing's Hutchison Ports, a Macquarie-backed consortium, and a group made up of Anglo Ports and an unnamed Asian ports operator.
Hutchison Ports is viewed as a strong contender because it already secured third-operator rights in Sydney and Brisbane, recently opened a terminal at Fisherman Islands in Brisbane, is pursuing Port Botany, and was described by Commonwealth Bank analyst Matt Crowe as the "hot favourite" to win the Melbourne slot.
The four shortlisted bidders must lodge their formal proposals in September, and the Port of Melbourne expects to announce the winning operator early next year, according to the article.
The tender is a further step toward breaking the existing duopoly on Australia's waterfront by introducing a third operator at major ports. The competition is directly challenging established stevedores such as Asciano's Patrick division and DP World.
The Port of Melbourne, Australia’s largest port, calls the third container terminal the "jewel in the crown of Australian ports." CEO Stephen Bradford said the expressions of interest confirmed the strategic significance of operating terminals at the port.
Owning multiple terminal slots on the east coast could be strategically valuable: Commonwealth Bank analyst Matt Crowe noted that having all three slots at major east coast ports would be a more compelling commercial offer than holding a single terminal, implying potential network and operational advantages for the winner.
A key operational requirement is that the new terminal will be mandated to shift at least 1 million containers each year. The project also includes significant waterfront capacity and an empty container facility designed to support port throughput and logistics.
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