The Victorian Opposition says it has reached an in-principle agreement with the Government on legislation to privatise the Port of Melbourne.

According to a report on the ABC, the Andrews Government has agreed to Opposition demands to limit a compensation regime to 15 years, as long as the bill to sell the port's long-term lease includes so-called 'competitive neutrality provisions'.

Parliament's Upper House is likely to vote on the bill today.

The 50-year lease is expected to sell for $6 billion, which would fund the government's signature election pledge to remove 50 railway crossings over two terms.

The agreement has been welcomed by the Australian Logistics Council as "an important breakthrough to provide economic stability in Victoria".

Michael Kilgariff, ALC managing director, notes that the Port of Melbourne is a critical enabler of economic growth and welcomes "the fact that the political wrangling over its future has now been resolved".

"An appropriately regulated port, supported by efficient road and rail links, is vital to sustaining the Victorian economy and achieving productivity improvements across the supply chain.

"Now that an agreement has been reached on the compensation clauses should a future Government support the development of a second port in Victoria, we look forward to the legislation passing the Parliament to enable the long-term lease process to begin," he says.