PRIVATISING the Port of Melbourne will ensure exporters aren't exposed to rising tariffs, industry experts say.
Treasurer Michael O'Brien last week committed to selling the port within months, saying Australia's biggest container port was on the road to privatisation, according to News Corp Australia.
Mr O'Brien said there was real potential to "leverage commercial interest in Victoria's ports" to fund new infrastructure across the State.
Australian Logistics Council (ALC) managing director Michael Kilgariff said a "robust" discussion on the sale of a major public asset was required, and exporters should "not be concerned by private sector involvement in infrastructure development".
Juturna Infrastructure advises government bodies on freight policy reform and principal Luke Fraser said commercial investors, not politicians, that will fund the privatised freight system must be involved in decision making.
"Why is this a public-servant led decision? That's what farmers have to worry about, they (government) need to talk to people with skin in the game," said Mr Fraser.
Victorian Farmers Federation concerns that privatisation could lead to higher port charges were justified, he said, if the sale wasn't managed correctly.
"If you put a port in the wrong place, the cost blowout will be enormous," he said.
"If you don't have a sensible discussion on where you're going to place your port, supply chains, the cost of upgrade and lease options then you are setting yourself up for higher prices."
Mr Kilgariff said the Essential Services Commission, the economic regulator of Victoria's ports, would have to have an ongoing role in sale negotiations to ensure "best-practice" was followed.
He said the government's decision to consider selling or leasing the port de-politicised the issue with State Labor already committed to selling the port if elected on November 29.
The ALC was also concerned with how potential funds would be redistributed in Victoria, he said.
"How would the sale of the Port of Melbourne work with the development of the second port (Hastings) because they need to work together?" he said.
"Containerised imports and exports from Victoria are set to almost quadruple during the coming decades and the city needs the right road and rail infrastructure to meet this growing demand."
Premier Denis Napthine recently announced the government would undertake a scoping study into selling the operation of the Port of Melbourne on a medium-term lease.
The study - expected to be released before the 2014-15 budget - will consider future ownership options of the two Victorian ports, paying attention to the economic and commercial values of each option.
Minister for Ports David Hodgett declined to comment on whether commercial investors were involved with the study, and didn't want to "pre-empt any of its findings or outcomes".
"We will carefully consider the future of Victoria's port assets to ensure they deliver the best return to Victorian taxpayers and meet the State's freight and logistics needs," he said.
Michael Frydrych, a Prague-born freight expert who spent 25 years in port development in Europe, said in his experiences, privatisation always reduced the cost of shipping for exporters.
"If it's done correctly it's the way to go," he said.
He said the privatisation of two of Australia's largest terminals, Port Botany in Sydney and Port Kembla in Wollongong last year along with Victorian ports of Geelong and Portland, which are already in private hands, set a successful example for other States to follow.
Last year Australia's biggest infrastructure investor, Industry Funds Management, registered interest in acquiring Melbourne's sea freight network to its existing NSW port assets.
Estimates by Stock & Land value the Port of Melbourne at $6 billion.
