ICTSI secures Melbourne port operations until 2066

International Container Terminal Services Inc. (ICTSI) has secured a long-term foothold at Australia’s largest container port after its wholly owned subsidiary, Victoria International Container Terminal Ltd. (VICT), signed a 26-year extension to operate and manage Webb Dock East at the Port of Melbourne.

The Port of Melbourne (PoM) and VICT announced the agreement, which extends the terminal’s operating contract until 2066. The original expiry date was set for 2040. With the extension, VICT will now have a remaining contract life of 40 years at the country’s largest general cargo and container port.

ICTSI has made sustained investments in VICT since the original lease agreement in 2014. The company is currently rolling out a new investment program scheduled for completion in late 2027. This includes the acquisition of a new neo Panamax ship-to-shore quay crane, four hybrid automated straddle carriers, and the expansion of two container stacking blocks.

The long-term extension coincides with sustained robust growth at the Port of Melbourne. In fiscal year 2025, the port handled around $154 billion in trade, marking its highest level to date. Container throughput is projected to continue increasing, with overall trade anticipated to double over the next 30 years.

VICT Chief Executive Officer Bruno Porchietto said the agreement reflects the company’s long-standing commitment to the port 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,” Prochietto said.

Port of Melbourne Chief Executive Officer Saul Cannon also welcomed the deal, citing it as a positive signal for the port’s future. “We see VICT’s decision to extend its lease at the Port of Melbourne as a sign of great confidence in our future. We welcome the investment VICT is making in the terminal and its shared commitment to keeping our port as the freight capital of Australia,” he said.

The extension will take effect once customary conditions precedent for transactions of this nature have been satisfied.