The Port Capacity Project will see increased container capacity at the existing Swanson Dock terminals.

The Port of Melbourne recorded increases across all cargo types in 2011/12 leading to a record overall throughput of 87 million revenue tonnes and an underlying profit of AUD59.2 million.

Victorian ports minister Denis Napthine says the result is a solid foundation for the port as it embarks on an "exciting period of growth".

An AUD1.6 billion Port Capacity Project will see increased container capacity at the existing Swanson Dock terminals, construction of state-of-the-art container and automotive terminals at Webb Dock, and a new onsite pre-delivery inspection hub for export and import motor vehicles.