A plan to move Victoria's car shipment hub to the Port of Geelong, estimated to create 1000 jobs, has been dumped.

Announcing a feasibility study into the idea last year, Ports Minister Denis Napthine said shifting car imports and exports to the state's second largest port would provide a major economic boost to the Geelong area.

He said it was estimated that relocating the car trade to Geelong would help generate up to 1000 jobs in the region and inject $200 million into the local economy.

But the day after the state budget, Dr Napthine issued a press release announcing the shipment hub would remain at Webb Dock in Melbourne, as a Department of Transport study found a move was unviable.

Dr Napthine the car industry strongly opposed any relocation to Geelong.

The concerns raised by the car industry included a lack of suitable land at the Port of Geelong needed for pre-delivery inspections on imported vehicles, as well as to prepare vehicles for export.

"Access to the shipping channel also proved to be an issue with ships facing delays due to restrictions in windy conditions coupled with the fact the channel is one-way," Dr Napthine said.

"The automotive industry made it clear that their preference was to relocate to a new location at Webb Dock where there is sufficient land and round-the-clock access for shipping lines."