The commercial operation of Australia’s Port of Melbourne has been leased for more than AUD 9.7 billion (USD 7.3 billion) to the the Lonsdale Consortium for a term of 50 years.
According to the Premier of Victoria Daniel Andrews, the Consortium, which comprises of the Queensland Investment Corporation, the Future Fund, Global Infrastructure Partners and Ontario Municipal Employees Retirement System, has committed to significant investment that continues to improve the port.
Ten per cent of lease proceeds will be invested in regional and rural infrastructure projects, totalling more than USD 970 million.
Upon the end of the lease, the port would be returned to public hands. The State will retain responsibility for the Harbour Master, Station Pier, relevant safety and environmental regulation, waterside emergency management and marine pollution response.
The lease is not expected to influence commercial and recreational vessels’ access.
“Leasing the port reinforces Victoria’s position as the freight and logistics capital of Australia and will make a great port even better,” Treasurer Tim Pallas said.