Port of Melbourne lease jumps first hurdle

Legislation to lease the port of Melbourne to the private sector has sailed through the Victorian Parliament's lower house but rough seas lie ahead.

The bill passed the Legislative Assembly on Thursday afternoon but the opposition has already signalled it will not pass the law, saying it's a bad deal for Victorians and could lead to a monopoly in the port.

The government is relying on the proceeds of the lease to fund its promised removal of 50 railway level crossings and projects, including the Metro rail tunnel, the West Gate Distributor and other important transport initiatives.

Treasurer Tim Pallas called on the opposition to pass the bill through the Legislative Council.

"Leasing the port means we can pay for the removal of our 50 worst level crossings, create thousands of jobs, get Victorians home safer and sooner, and still protect our AAA credit rating," he said.