Port of Melbourne sold for $7.3b

AFP, SYDNEY: An Australian-led consortium with Chinese investment won a 50-year-lease yesterday on the nation's biggest container and cargo port for Aus$9.7 billion (US$7.3 billion), the latest maritime asset to be privatised.
The Port of Melbourne, which deals with more than 3,000 ships annually, was snapped up by a consortium including Australia's second-largest wholesale funds manager the Queensland Investment Corporation (QIC) and multinational firm Global Infrastructure Partners (GIP).
The Australian newspaper reported that GIP was acting partly on behalf of China's sovereign wealth fund CIC Capital, which it said had effectively secured 20 per cent of the port.
A source close to the consortium confirmed to AFP that CIC Capital was represented by GIP but would not reveal the size of its investment.
The decision comes just months after the government introduced tougher rules for the sale of major Australian state-owned infrastructure to private foreign investors following concerns over a 99-year lease for the Port of Darwin to China's Landbridge Group.
The new rules, introduced in March this year, state that sales of crucial infrastructure to private foreign investors must be subject to a formal review by Australia's foreign investment advisory body.
China was also part of an Australian-led consortium that secured an 98-year lease in 2014 for the world's biggest coal export port in Newcastle. That deal followed the long-term lease of Sydney's Port Botany and Port Kembla further south as a growing number of major Australian ports are privatised.

Port of Melbourne sold for $7.3b

AFP, SYDNEY: An Australian-led consortiumwith Chinese investment won a 50-year-lease yesterday on the nations biggest container and cargo port for Aus$9.7 billion (US$7.3 billion), the latest maritime asset to beprivatised. The Port of Melbourne, which deals with more than 3,000 ships annually, was snappedup by a consortium including Australiassecond-largest wholesale funds manager the Queensland Investment Corporation (QIC)and multinational firm Global Infrastructure Partners (GIP). The Australian newspaper reported thatGIP was acting partly on behalf ofChinas sovereign wealth fund CIC Capital, which it said had effectively secured 20 per cent of the port. A source close to the consortiumconfirmed to AFP that CIC Capital wasrepresented by GIP but would not reveal the size of its investment. The decision comes just months after the government introduced tougher rules for the sale of major Australian state-owned infrastructure to private foreign investors following concerns over a 99-year lease for the Port of Darwin to Chinas Landbridge Group. The new rules, introduced in March this year, state that sales of crucial infrastructure to private foreign investors must be subject to a formal review by Australias foreign investment advisory body. China was also part of an Australian-led consortium that secured an 98-year lease in 2014 for the worlds biggest coal export port in Newcastle. That deal followed the long-term lease of Sydneys Port Botany and Port Kembla further south as a growing number of major Australian ports are privatised.