QIC teamed up with Australia’s sovereign wealth fund the Future Fund, Global Infrastructure Partners and Canadian pension manager Omers to run the Port of Melbourne, the group said in a statement Monday.
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“We believe this investment brings significant diversification benefits for our clients as a landlord port with a well-defined regulatory regime in a globally scarce infrastructure subsector”, QIC Global Infrastructure Head Ross Israel said in a statement released by the Victorian government.
The offers to buy the 50-year lease to operate the Port of Melbourne were submitted by 10 am Sydney time.
The Lonsdale consortium bid, which includes the Future Fund, QIC and worldwide investors, has passed competition and foreign investment checks.
Premier Daniel Andrews said the result represented “a massive vote of confidence” in the state economy.
Treasurer Tim Pallas says the timing was fortunate for Victoria. The two binding bids are likely to be worth $6.5 billion to $7 billion each.
While the state government will retain responsibility for the Harbour Master, Station Pier, relevant safety and environmental regulation, waterside emergency management and marine pollution response, Lonsdale will maintain access to public walkways and bike paths for community use.
It also smashes the target set by the government of Victoria state which previously said it hoped for A$5.8 billion for the container and multi-cargo port.
“Now that an agreement has been reached on the long term lease of the Port, ALC encourages the State and Commonwealth Governments to prioritise infrastructure investment to the port to ensure it can meet its economic potential”, said Michael Kilgariff, ALC Managing Director.
“Infrastructure Australia has predicted the volume of containerised trade going through our ports and airports will increase by 165% from 2011 to 2031”. The port handles about 2.6 million containers annually and more than 1,000 vehicles a day.
“An appropriately regulated port, supported by efficient road and rail links, is vital to sustaining the Victorian economy and driving productivity improvements across the supply chain”.
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“These new owners will want a return on investment and that will come from squeezing Victorian exporters”, he said.
