MELBOURNE—Opponents of a controversial plan to deepen Melbourne's Port Phillip Bay have lost their bid to stop the dredging going ahead.
The Blue Wedges Coalition launched a challenge in the Federal Court to try to overturn commonwealth approval for the project.
But Justice Peter Heerey today upheld Federal Environment Minister Peter Garrett's decision, allowing the project to begin on February 1.
The Port of Melbourne Corporation plans to dredge 23 million cubic metres of sand, rock and toxic sediment from the bay's shipping channels to enable larger ships to dock.
However, the coalition argued in a one-day hearing last week federal approval of the project was invalid, because it had changed dramatically since it was first referred to the Federal Government in 2002.
Blue Wedges argued the $969 million project initially proposed dredging to a maximum depth of two metres, but the depth was now "unspecified" and expected to reach more than five metres.
In his judgment, Justice Heerey said he accepted there were differences in the project since it was first referred to the government.
But he said the action of dredging was still the same.
"The approval decision is lawful. The law does not require the process to be started all over again," he said.
Justice Heerey did not make any orders to award costs.
Outside court, the Port of Melbourne Corporation welcomed the decision.
"This allows this critical project to Victoria, critical project to the nation, to go forward from early February," CEO Stephen Bradford said.
"We look forward to delivering this critical project before the end of 2009 and maintaining the bay in a sustainable environment."
The Blue Wedges coalition would not rule out further court action.
"We know now that the approval decision was lawful, but we await the reasons from Mr Garrett and we'll make our further decisions then," President Jenny Wharfe told reporters outside court.
Ms Wharfe said she took some consolation in the judge's acknowledgement the project had changed since its initial approval.
She said the fight to protect the bay would continue.
"A toxic dump in Port Phillip Bay is the direct outcome of this dredging project," she said.
"Sometimes the environment is a lot more important than money."
The group representing Victoria's farmers - the biggest users of the port - welcomed the judgment.
Victorian Farmers' Federation (VFF) president Simon Ramsay said farmers, who ship more than $7.6 billion of products each year, were frustrated at the delay brought by court action.
"It's important that we have the deepening going ahead so we can maximise the use of these container ships," Mr Ramsay said.
"We're disappointed a minority group would actually hold up a project that would cost many millions of dollars per day."
Mr Ramsay said the deepening of the channel would add value to farmers' shipping containers, which currently could only be loaded to 60 per cent capacity.
"We lose $400,000 per ship per day ... so it's going to mean a huge amount of money," he said.
Environment Minister Peter Garrett said the ruling vindicated the Federal Government's approach.
"I think my department would be able to say that the measures and the processes that were undertaken in us looking closely at that Port Phillip Bay project were absolutely appropriate," he told reporters in Canberra.
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