Victoria International Container Terminal Ltd. (VICT), a wholly-owned subsidiary of billionaire Enrique K. Razon Jr/’s Razon International Container Terminal Services Inc. (ICTSI), bagged a 26-year extension of its contract to operate and manage the Webb Dock East terminal at the Port of Melbourne.
Port of Melbourne (PoM) and VICT announced the extension today, which will see VICT continue to operate and manage the terminal until 2066. This moves the expiry date from 2040 and results in a remaining contract life of 40 years at Australia’s largest general cargo and container port.
ICTSI has made long-term investments in VICT since the original lease was agreed in 2014, and is currently implementing a new investment program scheduled for completion in late 2027. This includes a new neo Panamax ship-to-shore quay crane, four hybrid automated straddle carriers and the extension of two container stacking blocks.
The Port of Melbourne has seen substantive growth in recent years, including record trade in FY25, when it handled approximately $154bn in trade. This is expected to continue, with container trade at the port forecast to double over the next 30 years.
VICT Chief Executive Oicer Bruno Porchietto said the expansion of the contract term reinforced the company’s long standing commitment to the Port of Melbourne and to the Victorian economy.
“The extension allows us to continue investing in capacity, systems and people to support the State’s trade requirements over the long term, while providing shipping lines and cargo owners with greater operating continuity and certainty, he said.”
Port of Melbourne CEO Saul Cannon welcome the agreement.
“We see VICT’s decision to extend its lease at the Port of Melbourne as a sign of great confidence in our future,” he said.
“We welcome the investment VICT is making in the terminal and its shared commitment to keeping our port as the freight capital of Australia.”
The agreement will take eect upon the satisfaction of customary conditions precedent applicable to transactions of this nature.
