DP World wins battle with Port of Melbourne

DP World wins battle with Port of Melbourne

The long simmering battle between the terminal operator DP World and the Port of Melbourne over an astronomical 750% rent increase has been resolved in the Dubai firm’s favour.

DP World will now pay somewhere between A$25 to A$29 per sq m, up from its existing rate of up to A$18, but a long way off the Port of Melbourne’s proposed A$120. In the end it took the local Victorian government to step in and thrash out the deal for DP World.

The port’s planned privatisation – due early next year – has sparked huge protests and strikes in the past 12 months. Melbourne is Australia’s largest boxport. The government of Victoria is looking to lease the port for 50 years, with an option to extend for another 20 years.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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