Though still 15 months from opening, Victoria International Container Terminal Ltd has ordered eight Kalmar ASCs for phase II of the new automated terminal.The ASCs and related automation systems are for ICTSI’s new automated terminal in Melbourne, Australia.

Kalmar is also supplying the yard equipment for phase I, including 12 ASCs, 11 AutoShuttles, Kalmar Automated Truck Handling, integrated with Kalmar terminal logistic system and the terminal operating system provided by Navis, also part Cargotec.

The new ASCs for Phase II are scheduled to be delivered in the final quarter of 2016, ahead of the terminal’s scheduled opening at the end of 2016. Phase 2 is planned to be operational by December 2017.

The contract is also interesting from a port competition view port. Australia is certainly no stranger to automated terminals, though ICTSI will operate the first in Melbourne. There is a lot of interest in whether it be a commercial success, as ICTSI does not have facilities in Brisbane and Sydney to offer lines the coast-wide contracts they have with rivals Patrick and DP World.

This has proved to be a key stumbling block for HPH, which recently revealed it has lost $155.8M in its foray into the Australian market since 2012. It has terminals with automated yards in Brisbane and Sydney, but neither have been a commercial success. ICTSI’s investment in Phase 2 at Melbourne before it has even handled a single container indicates it anticipates far greater support from shipping lines. It will no doubt fuel speculation in Australia that ICTSI and HPH will come to some arrangement, at the ownership level or otherwise, that facilitates a three-terminal package to compete with Patrick and DP World.

The order is also a significant one for Kalmar’s parent Cargotec. It wants to convince shareholders its automation strategy is on the right track, and the contract was announced to the Helsinki stock exchange. Olli Isotalo, President of Kalmar, said: “Together, the Kalmar and Navis delivery represents a fully automated turnkey solution for VICT. All the automation system components are configured together to support targeted terminal performance. We are pleased to have received this further order from ICTSI for their terminal which will represent the latest technology in automated container handling.”

Christian R. Gonzalez, ICTSI head of the Asia-Pacific region, commented: “This is a premier project for ICTSI and our goal is to deliver a global standard in modern container terminal design, innovation and operations in Australia’s premier port. Kalmar’s vast experience in delivering automated container handling solutions in Australia as well as in other parts of the world will help us to put VICT amongst the top terminal operations.”