Melbourne backs down over DP World rent rise

The Port of Melbourne Corporation (PoMC) has backed down on a proposal to raise the rent, which DP World pays to operate the West Swanson dock, by more than 750%.

The initial proposal was made in March 2015 but was fiercely challenged by the terminal operator who threatened to refer the rise to Australia’s National Competition Commision.

Yesterday though, the two parties announced that they had reached an agreement which would give DP World a 50-year tenure with known fixed escalations in rent for the next 13 years.