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.