The Committee for Gippsland has provided conditional support for the proposed Port of Melbourne lease, but warned it has to enhance, not hamper, Gippsland’s access to a second container port.
In a submission to a Victorian Parliament select committee established to review the proposed leasing, Committee for Gippsland CEO Mary Aldred said it was important that any proposed lease of the Port of Melbourne provided clear and long-term economic benefits to the Gippsland region.
“The Gippsland region is a massive player in the export industry, and with the proposed China Australia Free Trade Agreement, and the growing demand for Gippsland produce more broadly, the need for reliable and affordable access to the export market is going to be even more crucial.
“Given the anticipated increase in export opportunities with China, it is important that local businesses have unrestricted access to market through Victoria’s port system.
“Any Port of Melbourne lease that seeks to restrict the future exploration of a second container port in Victoria, particularly the Hastings proposal, will no doubt limit future development and investment in Gippsland as well as limit export potential.
“The development of a second container port at Hastings has the potential to provide considerable savings to Gippsland producers making freight and logistics more efficient.
“The Port of Hastings requires further serious consideration by the Victorian Government and the Committee for Gippsland would encourage the Government to ensure that the future of exporting through Victorian ports is not restricted by terms of the Port of Melbourne lease.
“Any proposed lease needs to ensure that competitiveness within the port system can be enhanced in order to provide local Gippsland based industry with the confidence that transport and access to the Port of Melbourne is efficient and economically viable, now and into the future,” Ms Aldred said.
Throughout the Committee for Gippsland’s consultation period concerns were raised about the impact that a potential port monopoly would have on the export industry with Development Manager at Australian Paper, Ben McLean saying it was important that any proposed lease made exporting from Victoria more viable.
“We rely heavily on exporting finished goods so any increase in port charges will impact the viability of our operations and regional employment in Gippsland.
“The Victorian Government should adopt the New South Wales model and ensure port charges for exports are actually reduced and remain lower than imports. The funds gained should then be invested back into freight network projects to reduce the cost to access the Port of Melbourne.
“This would support Victorian manufacturers and encourage the use of locally sourced raw materials,” Mr McLean said.
The Victorian Parliament Select Committee is expected to report back by 30 November 2015.