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Infrastructure Victoria has assessed that the Port of Melbourne, Australia's busiest, should remain the focus of Victorian container trade for about 40 more years and will continue to grow over that time to about three times its current activity level. Bay West would begin to take over once container traffic at the Port of Melbourne reached about 8 million shipping containers (TEU) a year. Infrastructure Victoria predicts traffic will reach this mark in about 2055. The trigger of 8 million TEU is much lower than the port's new owners, the Lonsdale Consortium, believe is best. The consortium, which paid $9.7 billion to lease the port for at least 50 years, said last month the port could handle 12 to 15 million containers a year if certain big changes are made to Melbourne's road and rail network. Infrastructure Victoria estimates it will cost $6.1 billion-$6.4 billion to develop Bay West. But Melbourne Water has issued a warning that costs could exceed this mark, given the future port's unquantified impacts on the neighbouring Western Treatment Plant. Potential environmental impacts that could add extra costs include soil acidification and salinity, a rising water table inland of sewage treatment ponds and interference with the plant's effluent plume, Melbourne Water warned. Indeed, the offshore terminal would be so large it could change the nature of Port Phillip Bay.    "A structure as big as the terminal island is likely to affect the entire bay and not just the area close to it," Melbourne Water said in a submission to Infrastructure Victoria.

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