Government announces successful Port of Brisbane transaction

Treasurer Andrew Fraser today announced the signing of documents for the 99 year lease of the Port of Brisbane to the Q Port Holdings Consortium.

Q Port Holdings includes major stakeholders Global Infrastructure Partners (GIP), Industry Funds Management (IFM) and funds managed by QIC Limited (QIC), and a minority stake held by Tawreed Investments Ltd., a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The sale delivers $2.1 billion in cash proceeds to the Consolidated Fund as well as the new owner agreeing to fund the future upgrade of section 3 of the Port of Brisbane Motorway, at an estimated cost of $200 million.

“The signing of the deal represents $2.3 billion worth of value to the Queensland taxpayer with the future development of the Port now the responsibility of a quality consortium,” Mr Fraser said.

“By achieving this value-for-money transaction, taxpayers will also avoid expected infrastructure expansions at the Port worth up to $1 billion.

“We are in the marketplace for the upgrade of the Port of Brisbane Motorway up to Pritchard Street now, and this deal will deliver the next extension of this state owned road.

“This is a quality group of investors with the skill and balance sheet to ensure the future development of the port. It includes leading players in port and airport operations and two of Australia’s largest superannuation fund managers.

“GIP, IFM and QIC each hold equal stakes of circa 27%, with the remaining minority stake held by ADIA.”

“Collectively the consortium has interests in port terminals across eight countries and it has the right credentials for owning and operating the Port into the future.

“Two of the four members, IFM and QIC, are also shareholders in the Brisbane Airport – demonstrating their faith in the economic development of the Australia Trade Coast precinct of which the Port of Brisbane is a key component.

“These investors are voting with confidence in the future of the South-East corner’s economy by increasing their exposure to its transport requirements.”

Brisbane Airport has grown from 5,000 employees in 1996 to 17,000 today with $1.2 billion in investment since it was privatised by the Howard Government, Mr Fraser said.

By leasing the Port, Queensland will retain ownership of the Port land and key infrastructure such as the Port’s wharves and Multimodal Terminal – but transfer the expense and risk of operating a commercial shipping Port to the private sector.

As previously announced, under the terms of the lease recreational boat harbours like Sandgate and Manly have been removed from the business and will remain in public ownership, and there will be no changes to fishing and boating activities within the Brisbane River or Moreton Bay.

The Port of Brisbane Pty Ltd employs about 330 employees. All Award, and equivalent, employees have been given a commitment that their current terms and conditions will be maintained for the life of their enterprise bargaining agreements.

As well, all award staff have employment guarantees for the coming three years and will not experience any interruption to their continuity of service or accrued entitlements

The State Government will retain the role of Harbour Master through Maritime Safety Queensland and continue its responsibilities in relation to safety, security and the movement of ships within the Moreton Bay shipping channel and Brisbane River.

Media contacts: Treasurer’s Office – 3224 5982 or 3224 6361