Costs Increase for Port to Take Larger Ships

Thursday, March 22, 2007
The new generation of giant container ships will be able to access Melbourne's port within three years under plans released yesterday by the Bracks Government to deepen the channels leading to the city's docks, the Australian reported. But figures released along with an environmental effects statement reveal the cost of the dredging project has blown out from $545 million to at least $763 million.

And Treasurer John Brumby refused to say how much of the burden would be borne by taxpayers and how much by cargo exporters through a proposed increase in the container levy. Shallow areas in the mouth of Port Phillip Bay, the mouth of the Yarra River and the shipping channel between the two prevent about 25per cent of container ships using the port or loading to full capacity.

Modern ships are much larger and importers and exporters are keen to benefit from the economies of scale these vessels offer. Many of the bigger ships delivering cargo bound for Melbourne now dock at Singapore and their loads are placed on several smaller vessels for the final leg, generating extra costs. The project is poised to proceed with the statement released yesterday saying that although the dredging will reduce fish stocks and kill 5 per cent of Port Phillip Bay's sea grass beds, the damage will be short-lived and outweighed by the benefits.

Business has welcomed the project as essential to keep Melbourne's port - which handles almost 40 per cent of Australia's container trade - competitive.

The Australian Industry Group, the Victorian Trades Hall Council and Victorian Employers Chamber of Commerce and Industry welcomed the progress on the project, with VECCI chief Neil Coulson saying taxpayers should provide $200 million towards it. Source: The Australian

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ports

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

Demand, Bunker Pricing Spurs Asia Dry Bulk-Capesize Rates

Owners asking $1 per tonne more on Australia-China rates; Panamax rates climb to two-month high, but remain under pressure. Freight rates for large capesize

COSCO Says Piraeus Port Sale Terms Inconsistent with Deal

COSCO Greece objected on Wednesday to terms submitted to parliament for the sale of Piraeus Port to China COSCO Shipping, saying they were inconsistent with those

 
 
Maritime Security Navigation Pipelines Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0655 sec (15 req/sec)