The Victorian Government has announced that construction has commenced on the $1.6 billion Port Capacity Project at Melbourne’s Webb Dock.

The project will see the delivery of purpose built road connections, a automotive facility with additional shipping births and ‘on-dock’ pre0delivery inspection facilities to cater for the state’s growing car trade.

“This is a project of massive significance that will create 1,100 new direct jobs and 1,900 indirect jobs in the export, import and freight sectors,” Premier Denis Napthine said.

It will also protect thousands of existing jobs and cement the Port of Melbourne’s position as Australia’s busiest container port, and ensure Victoria remains the nation’s freight and logistics capital.

“The works at Webb Dock have been expedited enabling Melbourne’s third container terminal and new world class automotive facilities to be operational in late 2016.

State Ports Minister David Hodgett said the competitive bidding process for the right to operate the container and automotive facilities were progressing well.

“The market offerings to be a part of the Port of Melbourne at Webb Dock are well subscribed by private sector operators who are fiercely competing for the rights to develop their businesses here,” Mr Hodgett said.

The first container is scheduled to cross the new dock in late 2016.