The government of the state of Victoria, which owns the port, had proposed the rent hike to raise capital for infrastructure projects in the region however officials were forced to backtrack as DP World claimed it would quit the site causing uncertainty ahead of the planned privatisation of the port.
QIC raises $730m for Australian infrastructure projects
Improved certainty over the ports future has helped Australian investment firm Queensland Investment Corporation (QIC) which announced it has raised $729 million of new capital for its global infrastructure fund.
The fund’s managers are reported to be considering investments in upcoming privatizations at the Port of Melbourne and the Port of Fremantle.
“I’m delighted by the level of support and fund commitments that QGIF has been able to secure in this first close as a result of our focused marketing efforts and a strong potential investment pipeline,” Ross Israel, Head of QIC Global Infrastructure said.
QIC has previously invested heavily in port development, purchasing stakes in the Port of Brisbane and Spanish port operator Grup TCB. The new funding is expected to drive growth in the Australian market which has seen increased growth in recent years thanks to the country’s booming mining sector.
"The logistics chain, intermodals, the developments of roads for the distribution for containers coming in and then being broken up and distributed, all of those things over time are going to require investment." Israel said.
The new commitments to the QIC Global Infrastructure fund come from a range of institutional investors including Hostplus, one of Australia’s largest superannuation funds, an Asian sovereign wealth fund, one of China’s leading insurers and two foundation QIC clients.