Selling off the Port of Melbourne could cripple the push for freight to move off roads and onto rail, according to opponents of the sale.
The sale appears inevitable with the state Coalition government following Labor’s lead in flagging privatisation of the port to fund major infrastructure projects.
Labor plans to use a predicted $4 billion from the sale to help pay for its $19 billion transport wishlist, while the Coalition is yet to outline how it would spend the windfall.
Ports Minister David Hodgett said a scoping study ahead of this year’s budget would consider future development and ownership of the ports of Melbourne and Hastings.
But the Greens argue the sale of Australia’s busiest port would result in more freight trucks moving through the inner-west than ever before as the present 2.5 million containers a year explodes to more than five million by 2025.
Treasurer Michael O’Brien said the government must consider all the complexities relating to the future growth, demand, management and ownership of Victoria’s ports.
“Labor’s port fire sale is driven by panic over their $19 billion in unfunded transport policies,” he said. “By contrast, the Coalition government will sensibly determine the best way to maximise value from our ports that also supports our freight and logistics industry into the future.”
Victorian Greens leader Greg Barber said the port had returned $175 million to Victorians over the past five years. He said the sale wasn’t “free money”.
“We lose the stream of income we’ve been getting. Long-term decisions about transport strategy will be subsumed by the need for short-term private profits.”
Mr Barber said freight strategies such as moving freight off road and onto rail would be jeopardised. “If the contract doesn’t require it, they simply won’t do it.”
