Melb port sale price high enough: Andrews

Leasing Melbourne's port will cover the $6 billion needed to remove level crossings, Victoria's premier says.

A KPMG report says the sale of the port's lease over a 40-year period will only bring in $4.6 billion.

But Premier Daniel Andrews says there will be no need to top up the level crossing removal money once the port is sold.

"We always thought the previous government underestimated the (port's) useful life," Mr Andrews told reporters on Thursday.

He ruled out a 99-year lease, which had been reported as Labor's plan.

"We've always said we would get the best commercial advice from experts and put in place a product, if you like, a lease product that maximised the value for Victorian taxpayers," he said.

Mr Andrews would not put a timeline on when the port would be sold, or what the price could be.

The KPMG report was ordered by the former government, and looked at options for a 25-year to 50-year lease of the site.

The port's value could increase if the Transurban Western Distributor toll road project is approved, as it would offer better truck connections.

Treasurer Tim Pallas said after the budget the port's price was likely to be higher than original estimates.

Mr Andrews also gave some reassurance to Tasmania's government and businesses, who are concerned about possible huge rent hikes at the port.

"We understand that in many respects the port of Melbourne is Tassie's port as well, in that that's where all the bulk goods come through," he said.

"We want to protect their interests and we'll do everything we can to."

Mr Andrews said a possible second container port, either near Geelong or at Hastings, would be examined by Infrastructure Victoria when it was established.

Shadow treasurer Michael O'Brien said the government had reduced the price of the port by scrapping the East West Link and spooking investors.

Mr O'Brien said the former government was told a 30- to 40-year lease was a sweet spot, and Labor had not had any advice to the contrary.

"We've said we're disposed towards supporting the lease of the port of Melbourne but Labor's not getting a blank cheque from the opposition," Mr O'Brien said.

The opposition will wait to see the legislation before committing to supporting the sale.