Melbourne's proposed second container port could be 50 years away as the existing port is offered for long-term lease with non-competition sweeteners.
The Andrews governments has released details of its planned leasing of the Port of Melbourne, which is expected to go to market in 2016 on a 50-year lease and is tipped to raise up to $6 billion.
The sale legislation includes a non-competition clause that means a future government could have to pay compensation to build a second port.
Treasurer Tim Pallas said the clause wouldn't necessarily be activated before 2065.
"We don't believe it will, or would need to be, given the amount of time to actually establish and develop a port," he told reporters on Wednesday.
Under the proposed legislation, if the government wants to build a new port, it has to pay compensation to the owners of the Melbourne port's lease - with one exception.
If the Port of Melbourne reaches capacity, the government can build a new port without paying up.
Shadow treasurer Michael O'Brien said the proposal gave the new owners incentives not to reach the port's full capacity.
"This idea that we should not have any second container port for half a century, that just appears to us to be very dangerous," he said.
Mr O'Brien said the previous government had been advised a 30 or 40-year lease would make more sense.
The coalition is arguing for a new container port to be built at Hastings, while Labor wants Bay West, near Geelong.
Despite conflicts between the port and stevedores, and a referral to the ACCC over massive rent hikes, Mr Pallas said the port was conservatively estimated to fetch $5 to $6 billion.
He said annual tariff increases will be capped at CPI for at least 15 years to protect importers, exporters and consumers.
Treasury officials confirmed Tasmanian businesses who use the port and are worried about rent spikes would be protected by that 15 per cent CPI cap.
Mr Pallas said he hoped the opposition would support the sale of the lease, which the coalition had also promised to sell if it won the election.
Greens leader Greg Barber will oppose the bill but wants to send it to a parliamentary inquiry.
Victorian Employers' Chamber of Commerce and Industry boss Mark Stone said the lease will make Victoria eligible for a 15 per cent federal payment for asset recycling.
"Importantly, port user interests will be protected by the oversight of Victoria's independent economic regulator, the Essential Services Commission," Mr Stone said.
Mr Pallas has said the port is likely to go to market next year.
He said the money was necessary to fund Victoria's suburban level crossing removals program.
MELBOURNE PORT SALE
* 500ha of land to be leased
* $368 million revenue in 2013/14
* $92 billion worth of trade in 2013/14
* More than 3000 ships a year
* Redevelopment of Webb Dock, to increase capacity.
Source: Victorian government
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