Background

Traffic on our roads is a sign of mobility and of a dynamic economy. However, excessive congestion has a range of undesirable consequences including increased costs to the community and businesses through longer, less predictable travel times, lost productivity, additional running costs of vehicles, and environmental pollution.

In 2006, the Victorian Competition and Efficiency Commission estimated the economic costs of Melbourne's congestion ranged from $1.3 billion to $2.6 billion per year, and that this was likely to double by 2020.

1.1 The Port of Melbourne

1.1.1 The significance of the Port of Melbourne

The Port of Melbourne is a key driver of the economy of Victoria and Australia. As the gateway to the international markets for Victoria and its surrounding regions in New South Wales, South Australia and Tasmania, it handles nearly $75 billion in international and coastal trade each year, and contributes more than $2.5 billion to the state economy each year.

Introduction

The Port of Melbourne is Australia’s busiest container port, and a pivotal hub in the nation’s logistics network. It is therefore a key contributor to the economic wellbeing of Victoria and Australia.

The Port of Melbourne Corporation (the corporation) is responsible for managing the Port of Melbourne. It is required to provide safe and efficient movement of shipping through the channels and the port, and facilitate trade growth through the integrated management and development of land and maritime functions.