The Victorian government has announced a $1.2 billion re-development of the Port of Melbourne and will see the construction of a new container terminal at Webb Dock and further infrastructure upgrades as Swanson Dock to increase capacity.

 

The project is expected to generate in excess of 2,600 jobs and significantly enhance the economic prospects in the state, according to Premier Ted Baillieu.

 

"This major infrastructure project is an exciting opportunity to cement Victoria's reputation as the freight and logistics capital of Australia," Mr Baillieu said.

 

"The project will provide 700 direct jobs and 1,900 indirect jobs across Victoria, in addition to ensuring we are well placed to cater for the forecast demand in container freight.

 

"In 2010/11 the port handled a record 2.5 million twenty-foot equivalent containers (TEU) and has continued to set new trade records in recent months.

 

"With container movements in and out of Melbourne increasing in excess of six per cent every year and tipped to reach 8 million TEU by 2035, this announcement is an important part of the Coalition Government's plan to provide the infrastructure required to meet growing demand.”

 

Minister for Ports Denis Napthine said all Victorians would benefit from an improved and efficient port.

 

"With the port handling $82 billion worth of international import and export trade per annum, the Coalition Government recognises managing the port effectively is essential to maintaining the lifestyle, livelihood and trade benefits for Victorian people and Victorian businesses," Dr Napthine said.