New Victorian Port Must Have Local Content

16 Oct 11

Victoria's new deep water container terminal is an opportunity for the government to put its money where its mouth is with respect to local content in this massive infrastructure project.

The Port at Hastings on Victoria's Western Port Bay is said to be Victoria's biggest infrastructure project in a century. In addition to the construction of the port precinct a new 30Km road or rail link through Melbourne's southeastern suburbs will be required to transport the cargo, to what is in other words essentially an inland port close to Dandenong where the cargo will be processed and distributed.

A dedicated road or rail link, running parallel to the existing Western Port Highway, would potentially link the port to a new distribution centre, using giant driver-less trucks or trains, similar to those used in mines. This is one of the options under consideration to move millions of containers and other freight from Hastings to the new inland port.

The inland port, the hub for trucks and rail is likely to be built about 30km north of the port, between Dandenong and Lyndhurst to minise development of the coastal area.The land in question between Dandenong and Lyndhurst is in the most part vacant or farm land, but the government has not ruled out compulsory land acquisition.

Whilst much of the final detail is yet to be settled, with construction not expected to commence until 2014, clearly this project should represent significant opportunities for Australia's construction and manufacturing sectors. Australia's manufacturing sector is currently facing the headwinds of a high dollar, increased foreign competition, lack of local content in major projects and now an unwanted and not needed carbon tax that will do little for the environment and potentially kill off jobs in the sector.

At the outset of this estimated $9.4 billion project whether it remains in the hands of the Victorian government or is privatised, the Australian public deserves, and has the right to call for a very high level of local construction and manufacturing input into the project.

Australia has the manufacturing talent and capacity to undertake all the manufacturing component of the project including the proposed rail/road link from the port, even the manufacture of the driver-less trucks or trains as our manufacturers have applied their talents in this area with the mining sector.

This is an investment in Victoria's future trading hub and should translate to an investment in employment in our manufacturing and construction sectors by insisting on a high level of local content.

In recent weeks the Gillard government has been waving the local content flag for all major projects so it is time to see whether the Federal and Victorian government are good on their word.