KfW IPEX-Bank finances new container terminal in Melbourne / Australia

• New terminal in existing port area
• Support for European exports
• Contribution to global infrastructure development

KfW IPEX-Bank, as part of a consortium with six other international banks, is providing the project financing for the construction of a new container terminal at the port of Melbourne. In addition to the two container terminals already in operation the new terminal will help meet growing demand for cargo processing.

One of the world’s biggest container terminal operators, Philippines-based International Container Terminal Services Inc. (ICTSI) will use the loan totalling AUD 398 million (approx. EUR 270 million) in part to purchase state-of-the-art automatic cranes and software solutions from the Finnish Cargotec Group. The tranche financing these purchases is backed by credit insurance provided by the Finnish ECA, Finnvera.

The two existing container terminals share a port basin at the mouth of the Yarra River and currently handle about equal shares of Melbourne's total container trade throughput of 2.6 million standard containers (TEU) per year. However, their geographical location makes expansion difficult. Also, the jointly used turning basin and a bridge in front of the entrance to the port limit the types of ships that can be received to a maximum length of 300m and a height of 50m.

Since the new terminal is being built seawards of the current port entrance, it is not subject to the same constraints. The first berth will be fitted with three cranes and be able to handle post-Panamax ships with a loading capacity of up to 8,000 TEU; its partial commissioning is planned for start of 2017. When fully completed the terminal will offer two berths fitted with five ship-to-shore cranes each and be able to handle up to 1.1 million TEU annually.

In times when international trade is increasing rapidly, once its expansion is completed not only will the port of Melbourne - which currently processes more than 36% of Australia's container traffic - be equipped to handle bigger container ships, but it will also offer special empty container storage facilities and fully-automated operation, leading to better and faster service. This will enable Melbourne to meet the higher demands of both shipping companies and their large, modern vessels in terms of service quality and handling times. The faster turnaround times for ships using the new terminal will also help protect the environment.