The approval of the Port Phillip Bay channel deepening project by Federal Environment Minister Peter Garrett is the last substantive step in the approvals process and a very welcome one indeed, says VECCI.

This decision follows approvals given by Victorian Planning Minister Justin Madden in October 2007 and Victorian Environment Minister Gavin Jennings this month.

"Federal approval of channel deepening underlines the importance of the project to Australia as well as Victoria, and indicates that both Federal and State Governments believe the project is one that can be carried out with a minimum of environmental disruption", says VECCI CEO Wayne Kayler-Thomson.

"It also shows that Federal and State Governments can work together co-operatively towards a common goal.

"In this sense, the approval of channel deepening at the time the Council of Australian Governments meeting being held in Melbourne today is highly symbolic, as freight transport is one area crying out for better Commonwealth and State co-operation",

"The decision also clearly affirms Victoria’s status as Australia’s manufacturing, transport and distribution hub and a key cog in Australia’s global future, and Melbourne as Australia’s principal container port", says Mr Kayler-Thomson.