Encouraging Assurance on Port of Melbourne Lease Negotiations

The Hodgman Liberal Government is committed to standing up for Tasmanian exporters and shippers threatened by the Port of Melbourne privatisation.

About 98 per cent of Tasmania’s containerised sea freight travels through the Port of Melbourne, with our overall freight task representing a quarter of that port’s business.

The Premier, the Treasurer and I have all made direct representations with our counterparts in the Victorian Government, advocating for Tasmania’s interests and making clear our concerns about potential price impacts on shippers, stevedores, primary producers and others.

While the Andrews Government has introduced legislation for the privatisation that includes regulatory protections over fees and charges, which we welcomed, a serious question mark remains about port lease costs.

We have argued that the Port of Melbourne should meet with both major Bass Strait commercial shippers to renegotiate their leases ahead of the privatisation.

Today, I am pleased to report that I have received a letter from the Victorian Minister for Ports, Luke Donnellan, confirming that the Port of Melbourne Corporation has met with both shippers recently.

Mr Donnellan assures us that negotiations “could be completed in the next couple of months – certainly before the completion of the lease process.”

This is a promising development, and demonstrates that the Tasmanian Government’s strong and united approach is paying dividends.

We remain prepared to act decisively in the event that our exports sector is not fairly dealt with under the sale process, and we may join the fast-growing alliance that is seeking regulatory intervention.

At this stage, Mr Donnellan’s assurances are, however, encouraging.
Rene Hidding, Minister for Infrastructure