DP World hits back in Port of Melbourne row

DP World Australia has responded to criticism from a competitor in a public row over the level of rent it pays to operate the West Swanson Dock in Melbourne.

In March 2015, the Port of Melbourne Corporation (POMC) proposed increasing the rent by 767%. After threats of legal action and public debate on the issue though, the POMC backed down in August 2015 and offered DP World a 50-year tenure with known fixed rent escalations for the next 13 years.

This decision angered the CEO of Victoria International Container Terminal (VICT), a new terminal which will be operated by an ICTSI-led consortium. Anders Dømmestrup said on Friday: “The settlement of the very public rent dispute between DP World and POMC has increased DP World’s competitiveness and entrenched it for a lengthy period of time. This has skewed the level playing field on which the three stevedores [ICTSI, DP World and Patrick Stevedores] were expected to compete.”