The contract, which carries a total value of approximately €40m (£34m), was awarded by port owner and operator Flinders Ports.
Boskalis will widen the shipping channel to 170m from the current 130m and extend the turning basin to accommodate the larger Post Panamax container ships that are increasingly dominating global containerised cargo transport. The expanded channel will also accommodate larger cruise ships to support the tourism industry.
An estimated amount of 1.5 million cubic metres of mainly sand and clay material will be removed with a trailing suction hopper dredger and a large backhoe dredger.
The dredged material will be placed in a designated area 30km offshore with the aid of environmental management techniques designed to ensure that the maximum permitted turbidity levels are not exceeded. The project will be carried out in the second half of this year.